Pay-TV demand boosts LATAM satellite market

As growing requirements for satellite pay-TV was a key in driving overall Latin American satellite capacity usage to increase by 8% CAGR from 2009-2014, total capacity leased will grow at a 10% CAGR over the next decade says Euroconsult.

According to its latest report, Satellite Communications & Broadcasting in Latin America, between 2009-2014 the region added 1,600 channels and over 50,000 VSATs, trunking and backhaul.

Yet future prospects look even stronger following strong growth in demand, leading operators to invest heavily in expansion. Total regular capacity supply in Latin America is set to double by 2017 (from 2010 levels), while HTS capacity will increase eight-fold to over 370Gbps by 2017. In all, Euroconsult forecasts over 330Gbps of traffic flowing over satellite by 2024. Leading satellite pay-TV operators in the region are diversifying into new geographic markets and the emergence of new platforms are leading to rising numbers of TV channels distributed over satellite.

“As supply additions are projected to outpace growth in demand, the average regular capacity fill rate should decrease from 80% in 2014 to 70% in 2017,” said Nathan de Ruiter, senior consultant at Euroconsult and editor of the report. “The trend of falling fill rates is most profound in Ku-band, where utilisation levels are dropping from 86% in 2010 to an expected 64% by 2017, causing serious concerns for oversupply.” The risk of a temporary situation of oversupply is anticipated to place strong downward pressure on Ku-band capacity prices in the next three years.

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