Video launches satellite growth

Editor | 23-08-2012

Video services and emerging regions have been the key drivers for growth in the satellite market according to a new report from Euroconsult.

The Satellite Communications & Broadcasting Markets Survey, Forecasts to 2021 report revealed that in 2011 fixed service satellite (FSS) operators showed an overall growth of 4% in regular transponder capacity, 33% growth in High Throughput Satellite (HTS) capacity, and a $724 million increase for total capacity leasing revenues.

Pointedly, the survey showed that earnings were mostly influenced by increasing capacity demand for video services and rising competition in emerging markets.In particular,video distribution represented almost half of all transponder demand in 2011. Euroconsult added that it expects overall video distribution capacity demand in established markets will continue to remain stable over the next five years.

“The FSS industry is growing significantly despite the global financial crisis. We’ve entered the seventh consecutive year of operating margin growth, and the weighted average adjusted EBITDA margin jumped to 75% for FSS operators disclosing results,” commented Pacôme Revillon, CEO at Euroconsult. “However, the variety of operators investing in new capacities, particularly in emerging regions, is creating a highly competitive environment. Diverging trends could be observed in the differences regions, with risks of oversupply and capacity pricing rising in certain areas. Africa, Asia and Latin America should still continue attract more strategic investors in the coming years.”