The research firm’s Ultra HD via Satellite, 3rd Edition report claims that by next year, “almost all regions worldwide” will have access to Ultra HD channels, while developing regions will receive UHD networks by the end of the decade.
NSR said that the “plunging price” of 4K TV sets accelerates interest and demand in the new format, with 4K TV penetration rates to rise faster than the initial introduction of HD TVs.
It also forecast that the satellite capacity required to carry bandwidth intensive Ultra HD channels will drive an added US$280 million in annual leasing revenues.
“Given the exponential increases we’ve seen on 4K TV shipments, introducing Ultra HD channels and packages is a key strategy to retain and grow pay TV subscriber bases in an increasingly competitive environment,” said NSR analyst and report author, Alan Crisp.
“Additionally, this is a vital competitive response to OTT platforms’ ever expanding online content catalogues. While in the short term DTH, cable TV and IPTV platforms will offer Ultra HD for ‘free’ with existing premium channel bundles, longer term Ultra HD will achieve higher revenue streams generated by increasing ARPUs and subscriber levels.”
The report said that though Ultra HD remains a small component of the video market, the impact to the bottom line of pay TV platforms and satellite operators is “disproportionately large” and will form a critical component of most platforms by 2025.
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