Technology has become a prominent aspect of our daily lives and is constantly evolving. We see changes to technologies from all different platforms, and the growth thus far has been rampant with no sign of slowing down.
Television and satellite technology has been no exception to this exponential expansion in technology. In fact, television has given many communities access to information and entertainment they would not have access to otherwise.
High Definition TV technology is one of the things that is improving developing and developed markets alike. Eutelsat research has determined that HD has become standard in many markets and is the best avenue to hook and keep customers interested in your channels.
Here are three insights from our research that should encourage broadcasters to invest in HD no matter your market.
Three reasons to invest in HD
HD is the new normal
“HD is standard now. 15 years ago SD was the norm and HD was emerging as the new technology. That’s where we are at today - HD is the standard and 4K is the new technology in terms of broadcast.”
(Broadcaster from Central & Eastern Europe)
If your channel is not in the best condition possible, it is realistic that your brand will become damaged and look dated. The first thing viewers do when they switch to a channel is to decide whether or not it is worth watching. In addition to the content, the visual quality determines that initial interest in your channel. If your viewers think that it looks poor quality, then you are more likely to lose them in the long run and miss out on potential new viewers. Turning to HD as a standard practice for your brand means that you will stay in the game and preserve your brand image. The best services in HD have become an expectation rather than a privilege.
Technological innovation needs to be pursued
“Nobody wants to go back to watching SD, not even on YouTube. I don't think it’s a case of keeping up with the industry and competitors anymore, it’s about offering the best available solution for users.”
(Broadcaster from MENA)
A key aspect of running a successful business is staying ahead or at least on par with your competitors. In the TV and satellite market, making sure that the services you provide are the best is at the forefront of successful customer service. Beyond this, however, ensuring that the money you receive from your audience is spent on them is one of the best ways to ensure customer loyalty. The pursuit of new technologies and working to make them accessible to viewers is what successful service providers will adopt. With the popularisation of 4K quality, and the exponential increase in 4K/UHD TV sets, SD could just look like low quality from a low-effort provider. Service providers who don’t adopt HD will lose views and customers to broadcasters who advance their technology according to viewer expectations, enabling them to see images on screen to the best of their potential.
An opportunity for revenue
“In some countries, like in CEE, HD sometimes helps to upsell accounts.” (Broadcaster from Western Europe)
In mature markets, the expectation for increased revenue is generally not tied to having channels in HD. However, there is an opportunity in some of these markets to charge HD premium content - a prime space for broadcasters to increase their revenue. For example, in Germany, SD is the basic offer with HD as the add on. This model can also be replicated for developing markets, opening up new revenue streams and advertising opportunities.
HD doesn’t only allow your audience to enjoy a clearer, more beautiful image. It enables you as a broadcaster to increase your reach, make yourself viable for investments, and give back to your investors even more. In mature markets, HD has become something of the standard quality and is expected by audiences. In developing markets, HD provides an edge over your competitors and a bargaining chip for advertisers.
The conclusion is clear, no matter where you are - broadcasters who ignore investing in HD will likely fall behind, and broadcasters who invest in HD will find more success with their audiences and affiliates.
Eutelsat is an enabler of HD television throughout the world and has supported many broadcasters in achieving HD streaming for their market. If you would like to read more insights on HD, broadcasting or other TV trends, visit our blog or resource centre.