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Combining Satellite and Ott Delivery VIDEO COMBINING SATELLITE AND OTT DELIVERY www.eutelsat.com VIDEO HYBRID SOLUTIONS BETTER MEET THE NEEDS OF TV AUDIENCES TODAY OVER-THE-TOP (OTT) SOLUTIONS ARE found that the average daily time spent watching live WIDELY BEING PROMOTED AS THE FUTURE OF broadcast television dropped by only two minutes TELEVISION; BUT QUESTIONS REMAIN AS TO between 2015 and 2016, to 3 hours 28 minutes HOW THIS FAST-CHANGING LANDSCAPE IS per person. Countries such as Australia, China and LIKELY TO EVOLVE. Sweden saw the steepest decline compared to other markets. The highest growth rates came from India (up As audiences demand greater image definition, can 7%) and Brazil (+9%). OTT content be delivered in optimum quality? And how 2 does satellite fit into the picture? In the United Kingdom , the average time spent watching TV dropped by just four minutes to 3 hours 32 Media and broadcast service providers must adapt to minutes a day, and the weekly reach remains high with keep up with viewer expectations. Can hybrid satellite 91% of the TV population watching TV at least once a and OTT solutions help broadcasters optimise their week – which is similar to a decade ago. services and reach more homes? CONSUMER VIEWING HABITS ARE CHANGING Today’s viewers have more choice and control than 3h28mns ever before, with interaction and content on-demand Average daily time changing in particular how younger audiences spent watching live TV consume content. Viewing habits are diversifying as we watch content wherever and whenever we want. We consume at our convenience and want the best TV experience irrespective of how we’re accessing it. 91% At the same time, broadcast TV still has widespread appeal. Television is a central part of our daily lives and the key medium that enables advertisers to reach in UK several million homes. It is essential for building strong brands, and a very efficient means for content owners to deliver sports, news and popular entertainment. TV population watching Although viewing times are often said to be declining, TV at least once a week a recent report by communications regulator Ofcom1 which compared TV viewing habits in 16 countries, 1. Ofcom International Communications Market Report 2017 2 2. Ofcom Communications Market Report 2017 VIDEO BROADCAST TV VIEWING LIVE BROADCAST TV VIEWING: AVERAGE MINUTES PER PERSON PER DAY IN 2016 Average 208 mins Proportional POL JPN BRA RUS ITA USA ESP GER FRA KOR UK AUS NED CHN IND SWE change in minutes of live viewing per -1 0 +9 +1 -3 -2 -2 0 -2 0 -3 -4 -4 -6 +7 -4 person per day, 2015-2016 (%) Source: Médiamétrie, Eurodata TV Worldwide - One Television Year in the World 2017. AVERAGE WEEKLY REACH AND DAILY MINUTES OF TV WATCHED: 2006-2016 Average daily minutes Average weekly reach % 300 100% 92.2% 92.6% 92.4% 92.9% 93.1% 94.1% 94% 93.4% 92.4% 91.8% 91.3% 350 % reach weekly Average 80% 242 242 241 232 300 216 218 225 225 220 216 212 60% 150 40% 100 Average daily minutes daily Average 20% 50 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: BARB, Individuals 4+, network, total TV. Reach criteria: 15+ consecutive minutes of viewing at least once in the average week. Note: New BARB panel introduced 1 Jan 2010. Therefore pre-and post-panel change data must be treated with some caution (see dotted line). 3 VIDEO IMAGE QUALITY INCRASING INCREASING DEMAND FOR HIGHER IMAGE If you want to provide a nationwide UHD quality QUALITY service, only satellite has the bandwidth to do so. Satellite delivery guarantees an optimal service Image quality is increasingly important to audiences, quality as the bandwidth is entirely dedicated to the as we see with the acceleration in take-up of HD and video service, unlike OTT where it is shared with other Ultra HD (UHD). services and viewers. In 2017, almost 9000 HD channels were being Without the necessary bandwidth, UHD channels may distributed worldwide, an increase of 12% over the not display to their full potential on larger screens. 3 year . In the USA, for example, when Netflix launched its The rapid growth of HDTV is demonstrated in first UHD titles in mid-2014, it was only accessible to Eutelsat’s latest research on TV markets. The 2017 homes with a 20+Mbps internet connection. Using an TV Observatory for MENA reveals that the number of Adaptive Bit Rate, content quality dropped down to HD free-to-air channels broadcast in HD at the leading when the network saturated. 7/8° West video neighbourhood increased by 44% in DirectTV, however, launched their UHD VoD service in just one year, and 66% of homes at 7/8° West are now November 2014 with content preloaded via satellite. equipped for HD reception. By leveraging their existing HD set-top boxes, the To meet this demand, bandwidth requirements are offer was accessible to all subscribers nationwide. increasing. Demand for UHD is also growing, with over Subscribers only needed a UHD screen to enjoy the 75 million 4K TVs shipped in 2017 content. While UHD delivery can be challenging via OTT platforms, even in Europe, satellite bandwidth handles UHD seamlessly. This is why already over a dozen UHD 9000 channels have chosen Eutelsat satellites to feed both HD channels DTH and terrestrial networks in Europe, Russia and MENA. in 2017 IMAGE QUALITY STEADILY INCREASING 25 000 ULTRA-HIGH DEFINITION & 3D 20 000 HIGH DEFINITION 15 000 10 000 5 000 STANDARD DEFINITION 0 2016 2018 2020 2022 2024 2026 4 VIDEO SATELLITE TV GROWING SATELLITE TV CONTINUES TO GROW Case study The latest industry data shows that satellite TV is continuously growing. Meeting viewer demand A recent study of global pay-TV subscribers by Dataxis whenever and wherever reported a 3% growth in satellite TV subscribers between 2016 and 2017, taking the pay-TV audience For the Pyeongchang 2018 Olympic Winter Games, Discovery announced both record linear and to 245 million homes; to which should be added more digital audiences across its platforms, highlighting than 135 million free-to-air homes. Satellite delivery viewer demand to access live content whenever continues to gain market share worldwide, and is and on whatever screen they want. predicted to grow by 50 million homes between 2016 and 2021 to 430 million homes – 26% of the global In Discovery’s top ten markets across Europe, market. approximately 58% of the population watched free-to-air and pay-TV channels, both its own In terms of TV channels, Euroconsult’s 2018 Satellite and those of partner broadcasters, with a record- Communications and Broadcasting Market Survey breaking 90% TV audience share in Sweden and foresees the launch of an additional 2,130 satellite TV Norway. channels over the next ten years, with close to 44,300 A record breaking 76 million users also enjoyed channels by 2027. the Games online, on social and through the But there are also changes on the horizon. We are integrated Eurosport app. seeing a move towards more hybrid solutions involving In just the first weekend alone, the Games saw 212 both DTH and OTT, with OTT often used in addition million users across the various platforms, with an to traditional services, for viewers seeking more on- audience of 186 million via free-to-air and pay-TV. demand content as well as specific live programming. MILLIONS OF TV HOMES BY DISTRIBUTION MODE GLOBALLY 1682 1568 1588 1449 432 370 379 267 36 124 143 199 528 560 563 580 618 514 503 471 2010 2015 2016 2021 Satellite IP Cable Terrestrial / DTT Source: Digital TV research, June 2016 5 VIDEO NETWORK QUALITY IS CRUCIAL DISTRIBUTION CHALLENGES WITH OTT PROVIDING A CONSISTENT SERVICE TO ALL HOMES OTT services rely on a shared network, where the bandwidth is used by a number of services. This can The exclusive use of terrestrial broadband networks lead to quality issues when large amounts of internet for interactivity could leave a significant proportion bandwidth are consumed. of consumers permanently unable to access linear and non-linear services in areas with no terrestrial During peak hours, and for highly watched content coverage. Compared to the coverage and capabilities such as sports events or popular TV shows, network of terrestrial networks, satellite provides cost-effective overload can cause buffering, delays, poor picture and immediate access to TV customers virtually quality and loss of service. This can even affect major anywhere, with consistent signal quality across the events such as America’s Super Bowl in 2018, which coverage, and while OTT costs rise with the number of saw screens go dark for 30 seconds during the game, viewers, satellite costs remain fixed. hugely impacting customer satisfaction. Satellites are a very cost-effective way to reach The problem is that OTT service providers have trouble large numbers of people, particularly in regions with solving network overload issues. Content Delivery widely dispersed populations and in challenging Networks have no impact on potential network environments. They cover all households within the overload on the ISP network itself, they only guarantee footprint, including those unable to access OTT the fluid and scalable signal transmission from services due to insufficient internet bitrates. They broadcaster server to ISP network gateways. enable all citizens to be supplied with a similar service Increased video compression, such as MPEG-4, is not across regions instantaneously, and maximise the a long-term solution to network overload either as it route to market as they deliver to all networks. can only partly compensate for the parallel bandwidth And from a viewer perspective, in most emerging increase coming from higher market standards and markets the end-user monthly fee for a data rate customer expectations in terms of video definition – be sufficient to use OTT services is too high.
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