SatBroadcasting™: Video Over Satellite—Is there a future for this technology?
Roger Franklin | SatMagazine | October 3, 2018
These days, there are two types of video: Video-On-Demand (VOD) or Subscription Video-On-Demand (SVOD) — that’s the Netflixes of the world. Then there’s Live and Linear TV — that’s what is called TV Video.
Some are questioning whether TV video has a future. The short answer is yes, simply because there will always be TV as long as there are sports, news and other big events that people want to watch. This live (or near live) content is the main driver of TV as it needs to be distributed to multiple viewers simultaneously and with no latency. The best way to do accomplish this content distribution is through a broadcast channel, as opposed to multiple unicast channels to many individuals.
Satellite remains highly relevant as the technology is perfect for distributing TV channels on Direct-To-Home (DTH) platforms all over the world, and satellite broadcasting is also used by many TV channel providers to distribute channels to Over-The-Air (OTA) affiliates and cable headends, or from a super headend to regional headends. In fact, according to the World Teleport Association’s (WTA) Teleport Opportunity Survey, 45 percent of teleports generate more than half of their business from the media and entertainment markets.
However, the internet has changed everything and is able to deliver a personalized, rich media experience to anyone who loads a web page or initiates a video stream. This could mean that TV video is at risk of falling behind.
Addressable Ads in Satellite TV
Advertisers have long been drooling over the opportunities presented by video over the internet, specifically the potential for addressable ads.
In actuality, however, digital advertising hasn’t quite lived up to expectations. In 2017, Proctor & Gamble actually decreased its digital ad spend by a huge $200 million, reallocating their ads to TV, audio and ecommerce ads. This shift resulted in a reach increase of 10 percent.
At the same time, it’s still true that addressable (or targeted) ads in OTT (Over-The-Top) and VOD are much more effective than broadcast ads — so much so that targeted ad spots delivered to an addressable audience command prices that are four to eight times higher than regular broadcast ad spots.