The transition of the video industry from traditional TV to OTT and IPTV is impacting on satellite service providers’ video revenues. At the same time, it has also created opportunities for the satellite companies to innovate and experiment by integrating satellite solutions in various video market verticals.
These changing dynamics of the satellite video industry is paving the way for hybrid technology to take over the video market, and satellite solutions will play a crucial role in deploying services where video content reach is still at a minimum level. For instance, when it comes to deploying services in remote areas, satellite backend solutions are the game changers in terms of overcoming the complications of terrestrial infrastructure. Though the future of OTT services looks competitive, the transition of the global audience from satellite TV to OTT is consistent but at a slow pace in many parts of the world. Therefore, both satellite operators and service providers have received this opportunity during this transition phase to experiment and reincarnate satellite solutions for the emerging video market.
OTT Content Delivery via Satellite
SES, Eutelsat, Quadrille, and Broadpeak, among others, are some of the current companies providing satellite solutions for the OTT market. Both SES and Eutelsat provide satellite solutions for OTT and IPTV market segments. Eutelsat’s CIRRUS, a hybrid satellite OTT solution, consists of SmartBEAM technology. This SmartBEAM technology allows Eutelsat to extend its OTT content reach via Content Delivery Network (CDN) in the regions where the internet connection is at the lowest rate.
Quadrille, a company specializing in content delivery over satellite, partnered with Anevia, an OTT and IPTV software solution provider, in March 2019 to serve the live-TV market with sophisticated streaming content quality.
The satellite industry is evolving and entering a new era of the video industry, but one thing that keeps the clock ticking is that whether it is viable to compete with the terrestrial players to take over the OTT market?
As far as the competitive scale of OTT platforms is concerned, there are some empty spaces where satellite solutions will be the game-changer. Though the future remains uncertain, satellite broadcasting and broadband have started converging to give rise to new and innovative video market solutions.
Importance of Satellite Cloud Services for The OTT Market
Cloud technology is making the content distribution process less hectic and more efficient. That being said, satellite cloud services for the OTT market will be the cherry on top for the content distribution companies as it will remove the barriers of complex infrastructure for content delivery on a global scale. Mirantis is one such cloud service provider that was chosen in 2018 by an unnamed US satellite operator to deliver end-to-end OTT solutions cloud technology platform, OpenStack. The cloud technology has the ability to accelerate satellite business models by filling the gaps of the unexplored video market segments such as the remote or urban areas, where satellite TV is still the dominant business vertical. By integrating OTT, content via satellite cloud technology will pave the way for the satellite industry to monetize on its current technology and keep a stronghold on its years-long satellite TV customers.
Hybrid Technology
The recent advancements in satellite communication technologies, such as high throughput satellites (HTS), are changing the dynamics of the satellite services in terms of both coverage and bandwidth. On the other hand, as the demand for OTT content is rising, the end consumers will be consuming higher amounts of data due to the incoming HD, UHD, and 4K content services on platforms like Netflix, Amazon Prime, Disney+, etc. Moreover, the increase in multi-streaming capabilities by companies like Disney+ will also be requiring a good amount of backend technology to capture the traditional video market, especially in rural areas. And this is the segment where hybrid technology-- satellite and terrestrial, will be playing a crucial role in delivering the 4K and the upcoming 8K content both on a local and regional scale. Providing high-quality video content over terrestrial infrastructure limits the reach of the content over wider zones. But the entry of satellite solutions will help the content distributors to expand their services both in terms of content reach and revenue sphere.
Conclusion
Combining both satellite and terrestrial solutions will create value for the end consumer business, and this will also help the video market to unlock the potential of hybrid broadband technology. The future outlook of satellite technology for the OTT market also depends on how well the industry can navigate itself to find lucrative business opportunities. While considering the growth and competition in the OTT market, the satellite industry should also keep an eye on the ground for overcoming certain regulatory restrictions on both OTT and IPTV services. Though not many countries are stepping ahead to regulate OTT content, the regulation of OTT content might bend the curve on the subscriber side, which may ultimately lead to the loss of both satellite and terrestrial companies. Therefore, a collaborative approach towards OTT service expansion, such as hybrid technology, might be the best solution for satellite and companies.
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Omkar Nikam is correspondent of the Satellite Executive Briefing magazine based in Strasbourg, France. He is graduate of the International Space University. Apart from his academic and professional engagements in space activities, he also participates in voluntary science outreach programs. He can be reached at: omkar@satellitemarkets.com
