As a broadcaster, you must ensure that you reach all potential viewers consistently and generate revenue. A critical element to this is the strategy you choose to offer your services to your viewers - also known as the business model. Good business models help you gain more viewers and generate the most value from them, while bad business models are a liability that discourage customers and disrupt your cash-flow. A scary prospect - but something which can be rectified by partnering with the right company who knows how to help you. Eutelsat understands the issues that broadcasters face today and can guide you from ‘future worry’ to future-proof.
Distributing your Content via Satellite
The biggest advantage of satellite for broadcasters is its unique reach. No matter how developed or underdeveloped the infrastructure is in a region, satellite distribution enables broadcasters to reach all audiences in their target market.
Direct-to-home (DTH) satellite broadcasting distributes satellite signals from high powered geostationary satellites to small dish antennas and satellite receivers in homes. Strictly speaking, this is one of the more direct modes of distribution when we refer to satellite TV.
However, satellite distribution also reaches huge audiences indirectly, by feeding cable and IPTV platforms. Indeed, cable and IPTV operators who offer linear TV channels to their subscribers often use satellite delivery to feed their network head-ends. For cable and IPTV operators, the cost of receiving satellite feeds is generally marginal, and it’s the quickest way to reach operators in a market where time-to-market is crucial.
There are three principal reception modes: pay-TV, free-to-view (FTV) and free-to-air (FTA). Pay-TV and FTV content are encrypted and broadcast using a subscription model, for viewers to access and view using a set-top box with a smart card and conditional access system. Free-to-Air channels are unencrypted and available to anyone with a satellite dish pointed to the satellite and a set-top box.
Satellite Business Models
Integrating Pay-DTH Platforms
Pay-DTH channel platforms are digital multi-channel pay-tv platforms, like DSTv and Canal+.
The potential with integrating pay-DTH platforms continues to be immense. It is historically one of the most relied upon technologies with viewers fully understanding the advantages that come with paying for DTH - premium content, better quality, and a wide range of channel options. For broadcasters, this is an excellent opportunity to ensure they increase their channel’s visibility, find more viewers and gain more advertisers.
Integrating Multiplexes
Multiplexing is a means of sending multiple signals or streams of information over a communications link at the same time. This forms a single, complex signal used by networks to optimise bandwidth usage and costs for customers. About 87% of non-pay-DTH platforms are distributed through multiplexes - as such, they are already well-established. Multiplexing can thus enable broadcasters to offer their services at a lower rate thanks to the bandwidth savings, a great option for new broadcasters to access new markets.
Examples of available multiplexes to integrate include:
Digital Terrestrial Television (DTT)
In many developing countries, DTT is one of the primary means of distributing broadcast video content - as such, it should be considered when developing a digital broadcast strategy.
Cable/IPTV
Channels are received at the network headend and redistributed to subscribers. For viewers in areas where head-ends are deployed, access is easy and there is a reliable stream of content.
Eutelsat Digital Platforms (EDPs)
For TV channels distributed individually, EDPs give broadcasters immediate reach to the large, established audiences available via satellite, without the need to invest in multiplexing facilities. These full turnkey services offer a cost-effective entry point to satellite networks, while enabling broadcasters to keep full control of their content.
As a broadcaster, investing in the integration of available multiplexes means investing in a wider reach and greater accessibility for your viewers.
Satellite Business Model Options to Drive Revenue
There are a few options to consider when it comes to driving revenue:
Advertising
Advertising is one of the key forms of revenue for FTA/ FTV broadcasters and Pay-TV operators. However, this can get tricky when you need a substantial audience in order for advertisers to invest. As such, technology and volume are the key points for broadcasters to leverage.
Satellite excels at reaching a wide range of audiences across various levels of challenging terrain. In particular, local advertising costs tend to be higher than national advertising costs, which has probably allowed satellite operators to better leverage their national presence with more cost-effective national advertising.
Eutelsat’s Sat.tv is one such example of technology that assists Free-To-Air broadcasters with advertisers. It helps broadcasters get discovered by audiences by increasing their visibility with regionalised advertising, consistent channel presentation and more.
Subscriptions
Subscription broadcasting is a service where customers pay a recurring fee for their channels. The subscription service model is flexible. Pay-TV operators can tailor their offers according to audience usage or the TV channel content available.
Subscription advantages lie in viewer retention and an effective means of keeping track of customer needs and ROI. Moreover, the subscription option allows pay-TV operators to have consistent revenue.
Effective Strategies for Satellite Business Models
By following the above business models, you can create an effective strategy that will generate more revenue and growth for your company. However, Eutelsat understands that you may not have the tools, time, or technology to do it yourself.
That is where we come in - as a leading satellite operator, Eutelsat is able to understand and anticipate your needs, and help you build a sustainable business model that will ensure a successful future for your business.
Satellite broadcasting is a tremendous opportunity for broadcasters to invest in a business model that will ensure long-term reach and revenue growth. Contact us today and we can help you discover which strategy would best suit your channel to help you grow faster and become more profitable.