Market Value for Content
Management and Distribution
Services Reaches $18 billion
Mark
March 25, 2014
According to
Euroconsult's newly released
research report, Video Content
Management and Distribution, the
global TV and video market is up
$31 billion since 2008 and is
currently estimated at $192
billion, with the production
sector capturing the majority of
revenues. The Content Management
Distribution (CMD) market is
still dependent on the
distribution of linear TV
channels, representing 30,000
satellite TV signals and 23,000
unique TV channels in 2013.
Nevertheless, non-linear content
growth continues to accelerate,
including over-the-top content
(OTT) and mobile video,
impacting service revenues while
prompting specialized CMD
providers to expand their
service offering.
"The emergence of non-linear
will lead to the diversification of
revenue trends which is a positive
change in the industry. We should
continue to see more satellite
operators with terrestrial segments
shifting their business strategy to
adapt to consumer needs and leading
service providers acquiring
non-linear service providers," said
Marc Welinski, Euroconsult's Deputy
Director of Broadcast & Broadband
and a contributor to the research
report.
Growth in linear channels is
led by emerging digital markets
including the Latin America, Asia,
CER and MEA regions which accounted
for 80% of new channel launches
since 2008. Main drivers in these
regions include: the launch of
dozens of DTH platforms, the
introduction of new digital
terrestrial services, the growing
availability of HD content and the
increasing localization of content.
"In mature TV markets, it is
clear that growth in linear channels
is largely driven by HD," said
Dimitri Buchs, Consultant at
Euroconsult and Editor-in-Chief of
the report. "We expect to see over
11,000 HD signals by 2023. HD is a
significant market driver compared
to Ultra-HD which is forecasted to
produce less than 500 channels over
the decade."
CMD revenues for video
contribution services reached $5
billion in 2013, up from $3 billion
in 2008. Growth was largely favored
by occasional use services with
smaller, lighter and more easy to
use terminals (MSS and 3G/4G)
accounting for a growing share of
terminals, traffic and revenues.
Satellite will remain essential for
permanent contribution activities,
yet its market share should decrease
to the advantage of fiber. In the
occasional use market, the share of
satellite should also decrease to
the advantage of 3G/4G services.
Satellite revenues should be driven
by lower-priced HTS Ka-band services
with the share of HTS Ka-band in
total occasional use revenues
expected to grow from less than 0.5%
in 2013 to 18% in 2023.
Revenues from outsourced CMD
services reached $3.5 billion in
2013 with Western Europe leading in
revenues, ahead of Asia. CMD
services are offered by specialized
service providers, teleport
operators, satellite operators and
telecom operators. Globecast, Arqiva,
Encompass and RRSat are the market
leader, maintaining 35% of the
outsourced market in 2012.
