contribution
Satellite set
to stay
Executives at Es’hailSat
explain why satellite
communication will be
one of the main drivers for
future connectivity.
S
atellite communication has always been
the pivotal part in the video broadcast
and telecommunications sector since
its inception. In the early days, the ability
of satellite to reach and connect to vast
geographical areas was a key differentiator
to other terrestrial access technology and
accordingly was used widely in video deliveries
and private networks with diverse location.
This remains true for today.
However, with emergence of new market
trends and increasing competition from
alternative access technologies, adoption of a
multi-approach strategy to different segments
will be key for satellite providers to remain
competitive and grow in market.
Harnessing satellite capability to reach vast
audiences over a wide geographical area, the
video segment has traditionally been the key
revenue driver for the satellite industry, with
various applications such as Direct-To-Home
services, video distribution, video contribution
and many more. However, reliance on satellite
delivery for video application is expected to
reduce, with improved Internet penetration
and Internet speed across the globe. Statistics
from the ITU in 2019 show that global Internet
penetration has increased from 17% in 2005 to
close to 54% in 2019.
OTT. This has resulted in increased TV
viewing via Internet, i.e. Over-the-Top (OTT),
as it has become more accessible. The growing
adoption of OTT services such as YouTube,
Netflix, Hulu, Apple TV+, etc. is changing the
viewing habits and the way people consume
video content through capabilities such as
video on demand viewing. This paradigm
shift in viewers’ behaviour from linear
content consumption to non-linear content
consumption has influenced the broadcast and
14 EUROMEDIA MENA Special
satellite industries and resulted in increasing
number of broadcasting companies investing
in an OTT delivery platform.
This trend is seen especially in well-
connected regions, where most of the
populated areas have high speed broadband
and Internet connectivity. However, the
transition to OTT does not mean the beginning
of the end of broadcast via satellite. In the
UK, Ofcom’s Media Nation studies show
that despite the increasing trend to YouTube
and Netflix consumption, Live TV remains
the main source of audio-visual content
consumption, contributing an average 56% of
viewing time a day per person. It is expected
that both delivery methods will coexist and
continue to serve increasingly diverse needs of
the market.
In addition, the move to higher quality
video from standard definition (SD) to now
growing ultra-high definition (UHD/4K)
requires a significant increase in bandwidth.
Higher bandwidth requirements pose
challenges to OTT non-linear viewing as
the bandwidth consumption in terrestrial
networks increases with increasing number of
viewers.
BOTTLENECKS. This can create bottlenecks
for terrestrial connectivity services. One
potential approach is to consider a hybrid
delivery model where satellite distribution
is used to distribute content to be cached at
nearest local nodes in communities for last
mile delivery via terrestrial network. In a
nutshell, broadcast over satellite will still be
the main contributor to the annual revenue
for the satellite industry, however, growth will
slow down or become stagnant if it persists
with the broadcast model alone.
In the context of Middle East and North
Africa (MENA) region, a vast majority
remain unconnected by terrestrial means.
Accordingly, video content distribution via
satellite is still the primary infrastructure for
delivery, deriving growth for satellite capacity
lease. As a growing satellite operator in MENA
market, with access to one of the fastest-
growing DTH and Video Distribution hotspots
at the 25.5°E/26°E orbital position, DTH
service provision has always been Es’hailSat’s
core business, to deliver high-demand, high-
quality video content to viewers across the
region.
With over 700 TV channels of premier
sports and entertainment content available
on satellites at this location, this is the
perfect hotspot for local TV broadcasters and
content producers to distribute their content
locally and across the region. To help enable
Es’hailSat customer’s business potential and
growth, various options are being explored
to add value to their capacity. One possibility
is to explore extending video distribution
through an OTT platform.