In its entry, Eutelsat compares the transition from standard definition to high definition, which took place several years ago. – While SDTV was once basic home entertainment, that changed quickly when HDTV hit the market. By 2016, only 37 percent of American households were still watching SD channels, which caused advertisers to change the way they choose the media where they placed their spots, the operator wrote.
Half of TV sets in Europe are 4K ready
According to the company, we are currently dealing with a similar trend as several years ago. Fewer and fewer HD televisions are sold all over the world. Recently, the GfK institute published a study, which shows that as much as 75 percent. TV sets recently purchased in Germany are 4K devices. The satellite operator also cited the estimates of IABM analysts, which show that 50 percent. TV sets in the United States and Europe are compatible with UHD (Ultra High Definition), and most TV stations broadcast only in HD or SD quality.
– There is a clear reluctance from most broadcasters who find an investment in 4K too expensive. However, this is sure to change – with the advent of more televisions, consumer demand for quality increases. As seen with HD deployment, viewers are naturally leaning towards better quality and are soon avoiding other channels that cannot live up to their standards, Eutelsat wrote.
See also: Polsat Box from September with hybrid 4K decoder
Advertisers will force investments?
A satellite operator that earns, among others on the lease of space on the satellite to television channels, he claims that changes in the market may force advertisers. – Already in 2012, advertisers started a mass exodus from broadcasting spots of lower quality. Advertisers in North America are more likely to advertise on HD channels than those broadcast only on SD. The same is expected to happen with UHD. Eutelsat’s research showed that the early adoption of HD in emerging markets directly led to an increase in the revenues of broadcasters who invest in them. The early migration to HD emerging markets increased viewership, making broadcasters investing in HD more attractive to advertisers, says Eutelsat.
See also: Eleven Sports 1 4K on Canal +
– It’s no secret that quality attracts both viewers and advertisers. In fact, better quality is associated with 18 percent. the effectiveness of the spots. This likely means advertisers will eventually switch to UHD to get more profit than staying on HD channels. Like advertisers, they abandoned SD in favor of HD. UHD is an opportunity for broadcasters to stay ahead of trends and gain faster, suggests Eutelsat. If more broadcasters decide to launch 4K channels, companies like Eutelsat will benefit. One satellite transponder can contain much fewer channels if there are broadcast stations in 4K. Broadcasters therefore need to borrow additional satellite bandwidth. Recently, TVN Group Discovery has done so.
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