HD emergence to impact satellite capacity demand significantly: Northern Sky Research

In almost all global regions, High Definition is expected to “make a near term appearance and begin to have an impact on overall satellite capacity demand”, according to Northern Sky Research.

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By  Vijaya Cherian Published  May 10, 2005

In almost all global regions, High Definition is expected to “make a near term appearance and begin to have an impact on overall satellite capacity demand”, according to Northern Sky Research. The report, which explores the implications of the emergence of High Definition for satellite operators, says that North America leads the way with a number of HD channels currently made available by all major broadcasters. From a global total of US $47.6 million in revenues directly attributed to commercial satellite capacity leased purely for HD broadcasting in 2004, to a massive US $323.8M in revenues by 2010, the report forecasts significant growth in satellite lease revenues. This growth may be seen as welcome news for satellite operators given the recent stalemate in lease capacity prices due to excess capacity. In fact, the timing of HD could not be better: with increasing pressures from governments to migrate analogue channels to less bandwidth intensive digital starting from 2005/6 onwards, operators have been looking at HD to soak up excess capacity. "From a regional perspective, it is clear that North America and Japan have led the way in ensuring HD has finally emerged from being a niche service to a more widely accepted standard and an eventual replacement for standard definition digital television," states Christopher Baugh, president of Northern Sky Research (NSR). "Europe is not far behind with its first HD channel started in 2004 and all the major national broadcasters announcing plans to launch HD channels. In fact, the key market and technology variables for Europe are only now just beginning to align, paving the way for sustained evolution of the HD industry, similar to what North America has experienced over the past few years," he adds.

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