CEE 2011 > Distribution platforms
Digital TV Europe June 2011
Digital pay DTH subscriber forecast (CEE), 2010-2015 Millions
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clear that the economic downturn has slowed the growth in certain markets in eastern Europe. The markets where we witnessed the highest growth are probably Hungary and Bulgaria,” he says, adding that Intelsat’s cus- tomers will only launch more channels when the economic situation allows them to do so. “Which means when their customers are ready to pay for more choices. There are a few markets that still have potential for the launch of one or two platforms as well,” he says. Already this year, Intelsat closed a deal with
Viacom’s MTV Networks for capacity at 1° West. The deal also includes terrestrial con- nectivity via the IntelsatONE terrestrial net- work and uplink service via Intelsat’s teleport at Fuchsstadt, Germany. Earlier this year, satel- lite services provider Eastern Space Systems Romania signed two new multi-year contracts with Intelsat for capacity at 1° West to enable video distribution to cable headends and DTH platforms in Romania, Bulgaria, Moldova, Hungary, Macedonia and other central and eastern European countries. Last year Intelsat carried out deals with Russian DTH operator Orion Express for capacity on the Intelsat 15 (IS-15) satellite, located at 85° East, and with Bulgarian telco BTC, which operates under the Vivacom brand, via the IS-12 satellite, located at 45° East.
Looking to the future, Gillet predicts that HD will be a key driver for business in the CEE region, which is currently underserved by the technology. “The development of HD channels is slower in CEE than in western Europe and it will take time for the markets to be at the same level, but there is no doubt that the CEE market will catch up at some point,”
2013 2014 2015 Source: Informa Telecoms & Media
he says. “In order to see more HD offerings, you need consumers who can afford to pay more for it. The quicker the economic situa- tion improves, the quicker our customers will launch more channels.”
The CEE region is also an important area for Spacecom and its Amos satellite fleet at 4° West. “Spacecom’s main priorities for the CEE region are to keep on strengthening our EU orbital position at 4° West to enable more variety, more services and more flexibility to our customers,” says Amit Karni, Spacecom’s vice-president sales, central Europe.
with long-term subscriber agreements faired better. “One of the first and primary sectors to be hit was the advertising sector. As a result, pay TV platforms based on advertising fees in addition to subscribers’ fees suffered double and were extremely vulnerable,” says Karni. “On one hand they experienced an increasing churn rate when their subscriber base began cutting their contracts due to economic diffi- culties, while on the other hand, they endured the effect of shrinking revenues from advertis- ing.” On top of these factors, the sector was hit by a credit crisis that made it more difficult to obtain funding for set-top boxes and to increase growth in subscriber number. Things are looking up, however, Karni says, adding that the industry is seeing more stabil- ity and even a rebound in some areas, where TV platforms, channels and their owners are starting to move forward with new plans. “Opportunities remain for both new plat- forms and new TV channels throughout the region. Some countries in CEE lag behind in terms of GDP per capita and personal welfare, but the world’s economy is coming back on track. As their economies move forward, those countries will spur economic growth as well and in turn, we will see more channels coming up as well as new pay TV platforms.” Another corollary of a rebounding economy is that credit should start flowing again, mean-
“Consolidation means we will see bigger platforms capable of launching new HD and 3D services and thus will consume more
bandwidth.” Amit Karni, Spacecom
The operator recently initiated its Amos-6 launch programme, which will be stationed at 4° West. “This new addition will bring further freedom to our current customers and allow them, as well as new customers throughout the CEE area, to extend their reach beyond the immediate region,” says Karni. The satellite is scheduled for a 2013 launch and will include a dedicated Ku-band beam for CEE. Karni expects the region to bounce back from the economic crisis in time for 2013, although he admits that the “economic dol- drums have left their mark in the region”. Those operators who relied heavily on adver- tising models felt the full impact, while those
ing the process of consolidation will start to accelerate. For satellite operators, including Spacecom, this could mean the number of potential platform customers is diluted. But Karni takes a more positive view: “Consolidation means we will see bigger plat- forms capable of launching new HD and 3D services and thus will consume more band- width. Whereas the process of HD uptake in western Europe really picked up a year or two ago, the transformation in CEE has only recently begun with lower priced HDTV sets and flat screen TVs leaving the shops faster than others. We are definitely seeing an increased in demand for satellite capacity.” ●
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