Signage fuels growth in satellite distribution, says report

Analysts expect a large boom in satellite-distributed media content spending by enterprises over the next few years, and it is anticipated that digital signage will be a major driving force in that growth.

Northern Sky Research (NSR) recently released its newest market survey and forecast report, “Digital Media Distribution via Satellite — Assessing the Market for Digital Signage, Interactive Distance Learning and Digital Cinema.” The report provides an in-depth analysis of demand trends for each digital media via satellite application in three core regions of the globe.

The report concludes that from an estimated $287.9 million in revenues in 2006, the market is expected to reach $672.8 million in 2010, at a compound annual growth rate (CAGR) of 18.5%. Revenue growth will be driven by both strong legacy system equipment upgrades and new IP-based enabled digital media services. Opportunities in digital signage, interactive distance learning (IDL), and corporate communications also are developing due to a strong trend in richer and more diversified content for the enterprise.

The corporate business satellite network is evolving towards a full-use suite that serves to train and communicate with staff as well as also to enrich the customer shopping experience. The retail segment will be a vital source of near-term revenues and will offer a strong and potentially large end user market for digital signage and IDL vendors and service providers. Digital signage will realize its potential over the forecast period with double-digit growth expected and through large deployments planned in retail, automotive and financial services.

Recent demonstrations, pilot projects and roll out plans in the retailer space, such as Tesco, Wal-Mart, Advance Auto Parts, Daimler Chrysler and Home Depot, have shown solid ROI for satellite-based digital signage solutions. This success should only serve to foster confidence in satellite delivery of digital signage over the next five years.

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