Content Management and Distribution Services Reach US$ 18 Billion According to Euroconsult
Paris, France, March 25, 2014- According to Euroconsult's newly released research report, Video Content Management and Distribution, the global TV and video market is up US$ 31 billion since 2008 and is currently estimated at US$ 192 billion, with the production sector capturing the majority of revenues.
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. Nevertheless, non-linear content growth continues to accelerate, including over-the-top content (OTT) and mobile video, impacting service revenues while prompting specialized CMD providers to expand their service offering.
"The emergence of non-linear will lead to the diversification of revenue trends which is a positive change in the industry. 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 non-linear service providers," said Marc Welinski, Euroconsult's Deputy Director of Broadcast & Broadband and a contributor to the research report.
Growth in linear channels is led by emerging digital markets including the Latin America, Asia, CER and MEA regions which accounted for 80% of new channel launches since 2008. 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 Dimitri Buchs, Consultant at Euroconsult and Editor-in-Chief of the report. "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."
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% in 2013 to 18% in 2023.
Revenues from outsourced CMD services reached $3.5 billion in 2013 with Western Europe leading in revenues, ahead of Asia. CMD services are offered by specialized service providers, teleport operators, satellite operators and telecom operators. Globecast, Arqiva, Encompass and RRSat are the market leader, maintaining 35% of the outsourced market in 2012.
Video Content Management and Distribution is designed specifically for service providers, satellite operators, and equipment manufacturers focusing on growing new/existing business in the broadcast sector. The report includes an extensive analysis of the global video content market, as well as the main drivers and dynamics for video contribution and distribution. Profiles of leading service providers and popular OTT case studies are included within the report.
