June 17, 2014

NSR’s newly released Global Direct-to-Home (DTH) Markets, 7th Edition finds that by 2023, nearly 300 Ultra HD TV channels will be broadcast globally by Direct to Home (DTH) operators, with Ultra HD present in every region worldwide within the next decade. This exceptional growth will occur following the introduction of the first Ultra HD channels into DTH subscriber homes by late 2015, where consumers will be able to get their hands – and eyes – onto this ground-breaking content for the first time.

Utilizing this technology as a key differentiator against terrestrial and IPTV competitors, DTH platforms will continue to expand Ultra HD offerings. NSR’s DTH7 finds that leasing revenues for Ultra HD content will reach $125M by 2023, and during the period of 2013-2023, cumulative leasing revenues from Ultra HD will approach nearly $500M, despite today having no leasing revenue attributable to Ultra HD.

“Over 3.1 million Ultra HD TV sets were shipped in 2013, despite a lack of Ultra HD channels being broadcast yet, with the exception of a handful of demo channels, as well as some limited content via IPTV and YouTube,” explains Alan Crisp, NSR Analyst and report co-author. This shows the pent up demand for Ultra HD, and helps support the “chicken-and-egg” phenomenon that occurs with any new technological standard.

While the majority of these channels will be broadcast in established regions such as North America and Western Europe, East Asia is also proving to be a frontrunner. By 2023 it is expected that several dozen Ultra HD channels will be broadcast in East Asia, and even today the excitement surrounding this new technology is palpable in countries such as Japan, South Korea, and China.

“Despite the perception that Ultra HD is solely a 'developed market' phenomenon, we anticipate that developing regions such as greater China and South Asia will also contribute demand for Ultra HD content,” explains Blaine Curcio, NSR Analyst and report co-author. "With this global proliferation, content providers will find greater economies of scale in producing Ultra HD content. In fact, all signs point to Ultra HD picking up significant steam moving forward, on a truly global scale. Further, we believe that Ultra HD, unlike 3D TV, will be able to sustain momentum and consumer interest moving forward, and will ultimately win out as the new 'latest and greatest' technological choice for consumers."