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OTT and Mobile Video Accelerate Globally

A new Euroconsult report states that CMD revenues for video contribution services reached $5 billion in 2013, up from $3 billion in 2008. According to a new research report, the global TV and video market is up $31 billion since 2008 and is currently estimated at $192 billion. Those are the findings of research firm Euroconsult, which has released a report entitled Video Content Management and Distribution.

Euroconsult is headquartered in Paris, with offices in Montreal, Washington, D.C. and Japan.

The global consulting firm said that 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. However, nonlinear content growth continues to accelerate, including over-the-top content and mobile video, impacting service revenues while prompting specialized CMD providers to expand their service offering.

"The emergence of nonlinear will lead to the diversification of revenue trends, which is a positive change in the industry," said Marc Welinski, Euroconsult's Deputy Director of Broadcast & Broadband and a contributor to the research report. Dimitri Buchs, a consultant at Euroconsult, served as Editor-in-Chief of the report. "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 nonlinear service providers."

Euroconsult said that growth in linear channels is being led by emerging digital markets including the Latin America, Asia, CER and MEA regions, which accounted for 80 percent of new channel launches since 2008. The 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 Buchs. "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."

The report also states that 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 percent in 2013 to 18 percent in 2023.

Revenues from outsourced CMD services reached $3.5 billion in 2013 with Western Europe leading in revenues, ahead of Asia. Specialized service providers, teleport operators, satellite operators and telecom operators offer CMD services. Globecast, Arqiva, Encompass and RRSat are the market leader, maintaining 35 percent of the outsourced market in 2012.