In Broadcast - July 2015 - 49


49

www.inbroadcast.com | Vol: 5 - Issue 7 | July 2015

InUSA

It's Still A StandardDefinition World
Contributing Editor Michael Grotticelli discusses global
viewing trends from standard-definition all the way to 4K...

I

was on a trip to South America this
spring to Ecuador and was taken
by the country's natural beauty and
the fact that most of the televisions,
in restaurants, bars and even my
hotel room, were displaying images
on widescreen (16:9 aspect ratio),
standard-definition (SD) sets.
In an era when most trade shows and
industry conversations are revolving
around 4K television, or four times
the resolution of a High-Definition
(HD) set, it's important to recognise
that for many parts of the world,
480-line pictures are more than good
enough. Throughout my travels, I
never heard anyone complaining about
picture quality. They were happy to be
receiving TV at all.
This notion is backed up by a recent
report by Northern Sky Research
(NSR, a firm that tracks the satellite
direct-to-home, or DTH, industry)
entitled, "Linear TV Via Satellite: DTH:
OTT & IPTV, 8th Edition." It states
that, not only is SD most prevalent
across "developing regions" (defined
as Central and South America, Middle
East/North Africa, Sub-Saharan Africa,
South Asia, and Southeast Asia), but
also there's lots of room for growth.
Indeed, by 2024, the research firm
predicts that 4K/UHD will occupy
about 3% of the region's channels,
HD channels will encompass 19% of
the developing world's channels, and
nearly 5,400 SD channels will be added
in these regions by 2024, making SD
channels reach 78% penetration of the
region's channels (slightly lower than it
is today).
These predictions could be based
on the fact that for broadcasters,

the SD format uses significantly less
bandwidth to broadcast than HD
channels (and certainly UHD channels).
More channels means more choice for
subscribers and ultimately, increased
revenue.
When looking closely at these
"developing regions", the number
of satellite-delivered DTH channels
available to consumers is expected to
increase from approximately 7,300 to
just over 12,700 DTH channels. Of the
nearly 5,400 channels to be added
the majority will be in SD (with similar
trends for video distribution via an OTT
or IPTV service).
NSR said that in more developed
regions, such as North America,
growth is primarily derived through
increasing average revenue per user
(ARPU). This results in a transition
from basic to premium channel
packages. However, in developing
regions,
increasing
subscriber
numbers, resulting from increased
economic growth, primarily drives
growth and households purchasing
their first TV sets.
To be fair, as of the end of 2013,
according to the Leichtman Research
Group, 77% of US homes had at
least one HDTV, but also 41% of all
American TVs (about 125 million)
are SD versions, and countless
more homes that own an HD set are
unknowingly (or perhaps by choice)
watching it in SD.
However, don't count 4KTV out just
yet. The UltraHD market in developing
regions has accelerated, according
to NSR, with Indian DTH platforms
Videocon d2h and Tata Sky launching
their first UltraHD channels. The settop boxes for this service
will cost around $100 for
subscribers, which, it should
be noted, is several years of
a basic subscriber's ARPU.
Other platforms, such as Kino
Polska TV in Poland, have
announced their intention
to deliver UltraHD channels
to
consumers.
Although

these new channels
will introduce new
revenue streams for
Developing Regions DTH Channel Growth, 2014-2024
both DTH platforms
and satellite operators alike, it will UltraHD content, for the majority of
still remain dwarfed by the giant of SD the population, there is far greater
content.
value in having a greater selection of
Yet, despite the current hype for content available. This is the number
UltraHD, developing regions have one driver of growth in the developing
the highest growth rates worldwide regions, and satellite capacity will
for linear TV platforms, and in these follow this trend moving forward.
high growth regions, the greatest
So, the next time you are talking
demand is still coming from growth in about UHD TV as the next big thing,
the number of SD channels available. let's not forget that for many parts of
While the upper to upper-middle the world, good ole' SD does the trick.
class in these developing regions It also once again proves that content,
will keep demanding more HD and in any format, is still king.
http://www.inbroadcast.com http://www.truelens.co.uk http://www.nsr.com/ http://www.truelens.co.uk
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