<p>Several factors are responsible for the changing landscape of the satellite broadcasting industry such as the lack of collaborative approach, narrow focus/overuse of deploying satellite TV services in the lucrative regions, and the slower approach to adopting to new broadcasting platforms/technologies. While the majority of the satellite community might try to compete with the OTT platforms, there remains one question—Is the popularity of OTT platforms affecting the satellite broadcasting market? This can be true at times, but the end consumer of video content is unaware of the delivery systems (satellite, terrestrial, or hybrid delivery solution). Similarly, some of the market niches like Sports broadcasting are yet to be explored in an in-depth manner. As the North American continent is famous for various sports matches on a local and regional level, there lies a bucket full local and regional sports audience who can be the potential customers of the satellite companies.</p>
<p>Approximately 60% of the total revenue of the satellite operators comes from video business. And from the above graph we can see that SES, Eutelsat, and Intelsat are some of the satellite operators who are dominant in the satellite broadcasting market; especially due to their huge capacity of broadcasting satellite TV channels in various regions of the world. Therefore, both satellite operators and service providers should try to take a deep dive into the sports vertical to explore more about sports broadcasting services. And along with the technological aspects, the satellite industry also needs to focus on the strategy and video content management methodologies to keep itself aligned with the evolving video market.</p>
<p>Looking forward to the progress of the satellite operators, the revenues are flat from the past two years. Many satellite operators are currently experiencing little or no increase in their video revenues. This aspect of revenue generation varies from region to region. For example, Asia, Middle East, and Africa are still the strong revenue generation regions; on the other hand, Europe and South America are pretty flat. And North America, especially the USA, is rapidly shifting its focus from traditional TV to OTT and IPTV.</p>
Image Credits: http://www.metrodenver.org/media/853055/Broadcast-1200x600.jpg
<p>The USA is the third most populated country after India and China. It also the world’s biggest hub of technology where things accelerate at a much faster rate as compared to other developed countries. Therefore, low cost and advanced handheld devices will gain traction in such a rapidly evolving market. Simultaneously the entry of OTT platform paved the way for much easily accessible content for the most of amount busy audience in the USA. But satellite operators need to rethink on their idea of competing with OTT because the OTT market is also crowded with numerous regional and international platforms. Disney+ is an excellent example of how established studios are creating a high-grade value for their ensemble movie and TV content. The inception of Disney+ was a loss for Netflix, as Walt-Disney studios removed its Marvel Comics movies from the Netflix platform, to broadcast it via Disney+. On the other hand, according to Limelight Networks 2017 report, India being one of the world’s biggest Direct-To-Home (DTH) market is also experiencing the growth in OTT market with an average of rate of 1.7% increase in the subscriptions since 2017. While Middle Eastern and African nations together make more than 15 million satellite TV subscribers, the Asian OTT platforms like iFlix have slowly started capturing the market with Sub-Saharan Africa being the most potential target market for the company.</p>
<p>Even though there are numerous developments in the OTT segment, satellite operators have to think beyond the competition with OTT players because satellite technology is something that can also capture the huge audience from the most underdeveloped nations. One of the reasons is the lack of broadband infrastructure in the developing and underdeveloped nations; especially in many of the Asian and African countries. But the national broadband connectivity plans in some of the developing countries like Malaysia will be providing a lucrative opportunity for the satellite players. The aim of these national broadband plans is to provide remote areas with easy and flexible satellite broadband services. This will be in-turn an opportunity for satellite services providers to amplify their customer base using both OTT and IPTV content as a strong asset for broadcasting services. To regain the market status and compete with OTT players, satellite operators should leverage similar opportunities in such remote regions where broadcasting will be a game-changer for the local and regional audience.</p>
Content is the King: Really?
<p>Considering the growing demand as well as the supply of OTT content, satellite operators like Eutelsat have now started to venture into the OTT segment. This is a good move with respect to the industry point of view, but the current hustle of the broadcasting industry is not about satellite or terrestrial content delivery. Instead, it’s about the TIMING of the content delivery. The recent entry of The Boys, a comic-based web series on Amazon Prime, was one of the strategic content entries into the video market as the famous Marvel’s Avengers: Endgame was about to leave the cinema halls. Both the film and the web series showcased comic-fantasy content, but both had a different and unique approach. Marvel Studios showcased a cinematic world where Superheroes are the saviors of the humanity; Whereas The Boys took a complete opposite stand on the world of Superheroes. Therefore, given an in-depth thought on revenue generation capabilities, would The Boys web series have made the most amount of profit if it was released prior or with Avengers: Endgame? The answer is NO because even though The Boys would have received a positive response from the audience, the long thread of Marvel Cinematic Universe (MCU) was psychologically embedded in the mind of comic fans since it was the final installment in the Marvel’s 10-year movie series.</p>
<p>In the era of diversity and globalization, satellite broadcasting has made the world a smaller place with respect to the exchange of cultural diversity. And this is something that satellite industry should target as well, for example, a potential collaboration with well-known studios, movie production houses as well as with several regional and local OTT platforms. Meanwhile, the rich content will always be applauded by the audience but deploying the content in a specific time duration will help the broadcasters to earn the most amount of profits. </p>
Satellite broadcasting market is no more only about providing sophisticated technological services, rather it is becoming more about who is at the forefront position of production, distribution and delivery of the video content systems. Canal+ is one such satellite broadcasting service provider, who has recently partnered with the Nigerian and American companies to venture into the OTT market. This kind of strategic moves will help the satellite broadcasting service providers to grab hold of the video content, which can be eventually broadcasted on their respective platforms.
Studying and understanding consumer psychology on a regional scale can also help the satellite broadcasters to grab a huge number of subscribers. And this is something that has been missing in the DTH market for a very long time. The OTT platforms like Netflix and Amazon Prime have gained global traction mainly due to their efforts to provide the video services as per the needs of the regional audience. With respect to the current DTH market, satellite service providers should focus more on tailored regional content rather than offering a common content subscription for every region of the country.
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