Ultra High Definition

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Satellite

Ultra High Definition A new growth driver for satellite M14321MRA – September 2014

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This document is a part of our "Satellite" category which includes in 2014: - 4 market reports in Word, each with its synopsis in PowerPoint - Privileged access to our lead Satellite analysts

Author : Stéphanie VILLARET, Co-Head Satellite-Aerospace Practice Stephanie Villaret, Director of Studies, joined IDATE’s Marketing and Strategies Department in 1998. After several years in the Media Economics Division, she is Co-Head of the Satellite Practice in the Telecom business unit since 2011. Stephanie works primarily on reports concerning the satellite and aerospace industry, but also deals with the analysis of consumer ICT usages and services. Her assignments focus on: Analysis of satellite market players’ strategies and offers, Statistical surveys focused on ICT and media usages, Prospective analysis of usages, Marketing analysis of consumer multimedia products and services and Business modelling. Ms. Villaret is a graduate of the Institut National des Télécommunications, with a major in Information and Communication Technologies Applied Marketing, and holds a Masters Degree in Management Sciences (1997). [email protected]

Contributors Maxime BAUDRY, Co-Head Satellite-Aerospace Practice Samuel ROPERT, Senior Consultant Laurent MICHAUD, Head of Consumer Electronics & Digital Entertainment Practice Florence Le BORGNE, Head of "TV & Digital Content" Practice

About IDATE and DigiWorld Institute Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of its teams of specialized analysts. Now, with the support of more than 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity:  IDATE Research, an offer of market intelligence publications  IDATE Consulting, time-tested analysis  DigiWorld Institute, a think tank on the digital economy.

Contact us for further information on our publications Isabel Jimenez P: +33 (0)467 144 404 - F: +33 (0)467 144 400 - [email protected] Copyright IDATE 2014, CS 94167, 34092 Montpellier Cedex 5, France All rights reserved. None of the contents of this publication may be reproduced, stored in a retrieval system or transmitted in any form, including electronically, without the prior written permission of IDATE. IDATE, DigiWorld, DigiWorld Institute and DigiWorld Yearbook are the international registered trademarks of IDATE.

Ultra High Definition: A new growth driver for satellite

Contents 1.

Executive Summary ........................................................................................................ 7

1.1.

Quality will vary between the various broadcast networks .......................................................................... 7

1.2.

UHD, a growth driver for the TV set market ................................................................................................... 9

1.3.

Content distributors and broadcasters gradually integrating UHD into their strategies ......................... 10

1.4.

Satellite particularly well-positioned for broadcasting high-quality UHD to a wide audience ................ 11

2.

Methodology & definitions ........................................................................................... 13

2.1.

General methodology of IDATE's reports .................................................................................................... 13

2.2.

Methodology specific to this report: forecasting methodology ................................................................. 14

2.3.

Definition of UHD............................................................................................................................................ 16

2.3.1. Format .............................................................................................................................................................. 16 2.3.2. HEVC a necessity ............................................................................................................................................ 18

3.

Comparison of various fixed networks with regard to UHD broadcast positioning . 21

3.1.

Fixed networks: strengths and weaknesses for UHD distribution ............................................................ 21

3.1.1. 3.1.2. 3.1.3. 3.1.4. 3.1.5.

DTT .................................................................................................................................................................. 21 Cable ................................................................................................................................................................ 22 IPTV ................................................................................................................................................................. 25 OTT .................................................................................................................................................................. 27 Satellite ............................................................................................................................................................ 28

3.2.

Which network will be the most suited to broadcasting UHD? .................................................................. 31

3.2.1. DTT is not suitable ........................................................................................................................................... 31 3.2.2. Coverage of broadband terrestrial networks is limited...................................................................................... 32 3.2.3. Satellite, pioneering high quality video broadcasts ........................................................................................... 33

4.

Issues around equipment ............................................................................................. 35

4.1.

TVs, primary driver of market growth in a diverse technological context ................................................ 35

4.1.1. UHD only just taking-off.................................................................................................................................... 35 4.1.2. The range of UHD products available is growing ............................................................................................. 35 4.1.3. UHD shooting and broadcasting still in the testing phase ................................................................................ 36 4.2.

From LCD to OLED: a desirable convergence of these technologies ....................................................... 37

4.3.

Pricing models of TV technologies............................................................................................................... 38

4.4.

UHD, a growth driver for the TV set market ................................................................................................. 39

4.4.1. Renewed market growth by 2016 ..................................................................................................................... 39 4.4.2. 'Smart TVs' will account for 41% of TV sales in 2014....................................................................................... 39 4.4.3. Growth of the Ultra-HD market is expected to accelerate from 2016 ............................................................... 41 4.5.

STBs are essential ......................................................................................................................................... 43

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Ultra High Definition: A new growth driver for satellite

5.

The positioning of content distribution and broadcast players in relation to UHD .. 45

5.1.

Players' fingers burned by 3D ....................................................................................................................... 45

5.2.

But the success of OTT could be an incentive to differentiate through 'premiumisation' ...................... 45

5.3.

OTT operators: possible pioneers of UHD? ................................................................................................. 46

5.3.1. 5.3.2. 5.3.3. 5.3.4. 5.3.5.

OTT leaders are focusing on 4K in their strategies .......................................................................................... 46 A way to assert their leadership in the face of traditional channels... ............................................................... 46 ... and up against consumer electronics players............................................................................................... 46 ... who are themselves adopting an OTT 4K distribution strategy .................................................................... 46 A potential obstacle: ISPs wanting to cap broadband speeds .......................................................................... 48

5.4.

TV channels: still exercising caution ........................................................................................................... 48

5.4.1. 5.4.2. 5.4.3. 5.4.4. 5.4.5. 5.4.6. 5.4.7. 5.4.8.

The difference in quality not discernible enough for consumers ....................................................................... 48 Business model questions ................................................................................................................................ 49 Public service channels driving UHD forward ................................................................................................... 49 A strong correlation between enthusiasm from channels and the presence of national equipment vendors .... 50 Gradual creation of a UHD content catalogue contributing to enhancing the quality of HD .............................. 51 Major channels interested in testing UHD over DTT ........................................................................................ 51 Development is likely to be driven by major international sporting events in the future .................................... 51 Caution also influenced by the economic climate ............................................................................................. 52

5.5.

Still not many distribution players present in this market ......................................................................... 52

5.5.1. Cable operators could invest in UHD to offer a more comprehensive range of services .................................. 53 5.5.2. Telcos are in a strong position with fibre .......................................................................................................... 54 5.5.3. DTH service providers are positioning themselves to maintain their lead ........................................................ 55

6.

UHD, a growth driver for satellite operators? ............................................................. 58

6.1.

Market forecasts for 2018 .............................................................................................................................. 58

6.2.

Long-term uncertainty and opportunity factors for satellite operators ..................................................... 60

6.2.1. Growth drivers and barriers to UHD development ............................................................................................ 60 6.2.2. With growth expected to accelerate from 2019, this market could be a source of significant revenue for satellite operators ............................................................................................................................................. 60

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Ultra High Definition: A new growth driver for satellite

Tables & Figures Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table10:

Key factors affecting demand for satellite as a TV/video broadcasting medium ...................................... 15 Compatibility of UHDTV in MPEG-4 AVC, DTT ....................................................................................... 21 Compatibility of cable with UHD using HEVC, DVB-C vs DVB-C2 .......................................................... 23 Satellite UHD compatibility in HEVC per 36 MHz frequency .................................................................... 29 Summary of satellite capacity rental costs for a SD/HD/UHD channel using DVB-S or DVB-S2 ............. 29 Summary: Positioning comparison between different broadcast networks .............................................. 31 TV price ranges by screen size, 2014 ...................................................................................................... 39 UHD TV sales, 2014–2018 ...................................................................................................................... 41 Features of STBs offered by various telcos and pay-TV operators, end of 2013 ..................................... 43 Growth in Free's ARPU ............................................................................................................................ 44

*** Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20: Figure 21: Figure 22: Figure 23: Figure 24: Figure 25: Figure 26: Figure 27: Figure 28: Figure 29: Figure 30: Figure 31: Figure 32: Figure 33: Figure 34: Figure 35:

Positioning comparison between different broadcast networks ................................................................. 8 UHD TV sales by region, 2014-2018 ......................................................................................................... 9 Total UHD channels broadcast by satellite per geographic region, 2014–2018....................................... 11 Number of transponders used for broadcasting UHDTV services and UHD market valuation, worldwide, 2014–2018 ............................................................................................................................................... 12 Resolution comparison for different generations ...................................................................................... 16 Comfortable viewing distances ................................................................................................................ 17 Motion rendering at 50 frames per second .............................................................................................. 17 Forecasts for the launch of the various UHD phases ............................................................................... 18 Specifications and impact of HEVC ......................................................................................................... 19 Video bit rates according to coding technology ........................................................................................ 19 Roadmap for adoption of the HEVC codec .............................................................................................. 20 Spectrum allocation ................................................................................................................................. 22 Example Spectrum Options ..................................................................................................................... 24 Implementation of OFDM in DOCSIS 3.1 ................................................................................................ 24 Comparison between different DOCSIS standards .................................................................................. 24 Schedule for DOCSIS 3.1 equipment availability ..................................................................................... 25 xDSL performance ................................................................................................................................... 26 Distribution of DVB-S/S2 use worldwide in 2013 ..................................................................................... 28 Gains from DVB-S2 ................................................................................................................................. 28 Growth in reach of various key positions, 2009-2012 .............................................................................. 30 Fibre and Docsis 3.0 network coverage, end of 2013 ............................................................................. 32 Subscriptions by speed, Europe, January 2014 ....................................................................................... 32 Number of HD channels broadcast by satellite worldwide, mid-2013 ...................................................... 33 Proportion of HD channels broadcast by satellite worldwide, 2013 ......................................................... 34 Average mainstream prices of various TV technologies and their life cycle in 2014 ................................ 38 TV sales by region, 2014-2018 ................................................................................................................ 39 Connectable and non-connectable TVs sold worldwide .......................................................................... 40 Share of connectable and non-connectable TVs sold worldwide, by region ............................................ 40 UHD TV sales by region, 2014-2018 ....................................................................................................... 41 Distribution of Ultra-HD TV sales worldwide by geographical region in 2018 .......................................... 42 UHD TV installed base and penetration rates .......................................................................................... 42 Sony's 4K Video Unlimited service .......................................................................................................... 47 Netflix' UHD streaming at 15.6 Mbps ....................................................................................................... 47 UHD tests by South Korea's national broadcaster KBS with the documentary Colors: 4 Desires ........... 51 List of forthcoming major sporting events, 2014–2020 ............................................................................ 52

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Ultra High Definition: A new growth driver for satellite

Figure 36: Figure 37: Figure 38: Figure 39: Figure 40: Figure 41: Figure 42: Figure 43: Figure 44:

UHD programming test at the Sochi Olympic Games, early 2014 ........................................................... 54 Excerpt from Verizon's homepage ........................................................................................................... 54 Comparison of upload and download speeds among the main Internet service providers in the United States....................................................................................................................................................... 55 4K demonstration by SES Astra at the IBC in Amsterdam in 2012 .......................................................... 56 The MediaPlay DST839 by Technicolor................................................................................................... 57 Total UHD channels broadcast by satellite worldwide, 2014–2018 ......................................................... 58 Total UHD channels broadcast by satellite per geographic region, 2014–2018....................................... 59 Total satellite transponders used for broadcasting UHD channels worldwide and by geographical region, 2014–2018 ............................................................................................................................................... 61 Number of transponders used for broadcasting UHDTV services and UHD market valuation, worldwide, 2014–2018 ............................................................................................................................................... 61

List of case studies BBC ............................................................................................................................................................................ 50 Comcast ..................................................................................................................................................................... 53 Free ............................................................................................................................................................................ 44 Netflix .................................................................................................................................................................. 27 ; 47 Sky Deutschland ....................................................................................................................................................... 57

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Ultra High Definition: A new growth driver for satellite

2. Methodology & definitions 2.1. General methodology of IDATE's reports The methods employed by IDATE’s teams of analysts and consultants are based on an approach that combines:  research and validation of data collected in the field;  the application of classic industry and market analysis tools: segmentation, competition analysis, strategic strengths, modelling, assessment and forecasts…;  the expertise of specialists who contribute their own analytical capabilities and those of their network of market analysts. More specifically, the tools employed by IDATE’s teams are as follows: 1/ A multi-disciplinary team of full-time consultants, specialised by sector of activity IDATE’s analyses are performed primarily by our in-house consultants, and very occasionally by freelance market analysts. This approach allows us to capitalise on our pool of expertise through teamwork, sharing knowledge, ideas, contacts, viewpoints and key data. Each report is drafted by a team of specialists, overseen by senior consultants with a proven track record in their field. 2/ Primary and secondary research IDATE reports and databases are compiled based on primary data obtained from one-on-one interviews with the sector’s decision-makers, and on secondary data which is established by cross-referencing public sources and external databases. 3/ An integrated information centre sustained by a number of tools and proprietary databases Over the past 30 years, IDATE has established working and data organisation methods and proprietary databases that trace the central chapters in the history of our sectors of expertise.  Companies: IDATE’s in-house data service tracks the latest news and events to come out of the top telecom, Internet and media industry companies around the globe. Innovative firms and start-ups are monitored by the market experts in the different “Practices”.  Markets: IDATE’s databases are derived from rigorous processing of fundamental economic variables (GDP, investments, exchange rates, demographics, etc.) and their relation to decisive sector-specific and national elements (capex, national market dynamics, etc.).  Technologies: IDATE’s organisation by Practice provides us with an efficient means of tracking innovation. IDATE’s engineers ensure in-depth understanding of the changing shape of products and services and of the latest innovations in the marketplace. 4/ Contents of the published reports Each IDATE market report details the structures and issues at play in the market being examined, the decisive forces (technologies, regulation, consumption) and the players involved. Particular emphasis is given to market assessments and forecasts, as part of the central premise. All market reports are laid out in a clear and concise manner, and illustrated with tables and graphs of key market data and trends. The process of drafting of a market report includes the following stages:  analysis of the information available in the in-house databases, and review of analyses performed in the recent past;  based on a preliminary segmentation and assessment of the market, and as part of an validated interview guide, analysts conduct interviews that enable them to validate working hypotheses;

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Ultra High Definition: A new growth driver for satellite

 a market model is then established, making it possible to test the hypotheses that have an impact on the market’s development, and validated by a new round of interviews;  and, finally, the report’s conclusions are debated with the team responsible for the project and with expert consultants from the various fields involved;  a final proofreading and editing/revision process, prior to the production of the final version of the report which is delivered to the client.

2.2. Methodology specific to this report: forecasting methodology In order to judge whether UHD represents a credible growth driver for the satellite industry, IDATE has provided some estimates in the final part of this report on penetration of this new service via DTH between now and 2018. To do this, IDATE implemented the following methodology: 1/ Reference period Taking into account the current technological developments that allow a growing number of UHD channels to be broadcast, IDATE presents its vision of how the DTH market for UHD will develop in the medium term, over the 2014-2018 period. 2/ Geographic coverage Our market forecasts are based on the current state of the global DTH market in 2014. It was analysed using the major geographic regions of Europe, North America, Latin America, Asia–Pacific and Africa–Middle East. 3/ Estimates for number of TV services For each region, the number of television services broadcast free of charge (free TV) and broadcast as part of a pay-TV offering were identified using information provided by Lyngsat's website, and according to the following classification: analogue channels, standard digital channels, High Definition channels, Ultra High Definition channels, 3D channels and interactive services. Building on our expertise in the DTH market, assumptions were made (rates of growth or decay) to estimate changes in the number of TV channels over the analysis period (2014–2018), by type of TV service. 4/ Estimates for required broadcast capacity The capacity required for distributing television services was calculated by type of service, by combining two sets of assumptions:  a set of assumptions related to average bandwidth by type of TV service  a set of assumptions related to comparative penetration of MPEG-2 and MPEG-4 compression standards, by type of service. The HEVC codec was selected for TV channels broadcast in UHD 5/ Estimates for the number of satellite transponders used for broadcasting TV services The number of satellite transponders dedicated to broadcasting TV services was calculated based on a set of assumptions related to the comparative penetration of DVB (transponders equivalent to 36 Mbps) and DVB-S2 standards (equivalent to 50 Mbps).

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Ultra High Definition: A new growth driver for satellite

Assumptions were differentiated according to the various geographical regions analysed, based on certain factors that directly impact demand for satellite capacity as a TV/video broadcasting medium. These key factors are presented in the following table. Table 1:

Key factors affecting demand for satellite as a TV/video broadcasting medium

Key factors Number of analogue channels

Number of SD* channels

Number of HD* channels

Number of interactive services

Number of 3D channels Number of UHD* channels Broadcast technical standards

Average bandwidth by channel or service type

Impact Analogue switch-off already complete in Europe and North America Stabilisation before likely decline from 2018 in other areas (expected delay in switch-off process in some countries, particularly in Africa) Probable decrease in the number of channels over the period in Europe and North America, given the difficult economic and competitive conditions: rising influence of OTT players, slower growth in the advertising market, audience fragmentation as a result of the increase in offerings on the various networks, changes in consumption patterns towards more video on demand Sustained growth in emerging market regions: launch of new platforms, expansion of existing platforms, launch of new FTA TV channels, increase in household equipment levels, growth in average purchasing power Growth in all regions, especially in Europe and North America, where it is the main reason for growth in satellite capacity demand over the period SD/HD simulcast to continue over the period due to the considerable installed base of set-top boxes Moderate growth in all regions: launch of some interactive services to meet growing consumer demand for interactivity Minor impact on demand for satellite in view of the limited number of services concerned Slight decline worldwide: this technology is likely to remain niche, mainly limited to a few VOD channels Launch of a few test channels from 2015 in Europe, North America and Asia Widespread use of MPEG-2 compression for SD channels Almost exclusive use of MPEG-4 compression for HD channels: decreases bandwidth requirements by about 50% compared to MPEG-2 Exclusive use of HEVC for compression on UHD channels Widespread use of DVB-S for broadcasting SD channels Almost exclusive use of DVB-S2 for broadcasting HD channels, except in North America where DVB-S still dominates: decreases bandwidth requirements by about 30% compared to DVB-S Exclusive use of MPEG-4 and DVB-S2 for broadcasting 3D channels DVB-S2 Extended not taken into account between now and 2018 For an analogue channel: 36 Mbps For an SD channel using MPEG-2: 4 Mbps For an SD channel using MPEG-4: 2 Mbps For an HD channel using MPEG-2: 16 Mbps For an HD channel using MPEG-4: 8 Mbps For a 3D channel using MPEG-4: 12 Mbps For a UHD channel using HEVC: 20 Mbps For an interactive service: 1.5 Mbps

* SD: Standard Definition; HD: High Definition; UHD: Ultra High Definition Source: IDATE in Ultra High Definition, September 2014

The results of our estimation of how the DTH market will evolve over the 2014–2018 period are expressed in the number of satellite transponders. This first result then allows us to assess market value, based on valuing a transponder at an average of 2.5 million EUR per year in Europe and 1 million EUR per year in other regions.

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Ultra High Definition: A new growth driver for satellite

2.3. Definition of UHD 2.3.1. Format Definitions UHDTV (Ultra-HDTV) will be the next format in terms of television quality, with four times the resolution of high-definition television (HDTV). Consumer electronics manufacturers presented the first high-end UHDTV equipment at the beginning of 2013 (CES in Las Vegas), and satellite broadcast tests started about the same time. Currently, there are two forms of UHDTV: UHDTV1 (4K) and UHDTV2 (8K), both with an aspect ratio of 16:9.  4K Ultra-HD (2160p), has a resolution of 3840 x 2160 (8.3 megapixels). It is roughly equivalent to digital cinema (DCI) 4K and has four times as many pixels as Full HD (1080p). Digital cinema differs slightly from television (DCI 4K has 4096 pixels per line, compared with 3840 for 4K TV).  8K Ultra-HD, also called UHD-2 or Phase 3 (4320p), has a resolution of 7680 × 4320 pixels (33.2 megapixels) and is roughly equivalent to an IMAX film, or 16 times the resolution of Full HD (1080p). It corresponds to NHK's Super Hi-Vision format. 8K is four times greater than 4K in terms of resolution. Figure 5:

Resolution comparison for different generations

Source: Les Numériques, July 2014

In addition to the big boost in terms of image quality, sound quality is also increased significantly with Ultra-HDTV. 24 audio channels can be used with 24 speakers. 4K is likely to be the next format to establish itself in the short term, even though NHK Super Hi-Vision is based on 8K. Immersive experience 4K screens will not necessarily create an immersive UHDTV experience. However, EBU is working with its members to develop a system capable of making UHD immersive in the medium term. The goal is to have standards and systems ready (2017/18 seems to be the expected time frame) by the time the first reinvestments in existing HD infrastructures are planned. This will require using a combination of advanced image and audio immersive technologies and new infrastructures throughout the technical chain. Higher Dynamic Range (HDR) technology should help to improve the image. Encoding will increase by 20% with this technology. However, the diagram below shows how viewing angles and distance from the screen already vary between SD (left), HD (centre) and Ultra-HD (right).

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Ultra High Definition: A new growth driver for satellite

Figure 6:

Comfortable viewing distances

Source: phonandroid

This shows that as well as better resolution, UHDTV also provides an immersive user experience thanks to a shorter comfortable viewing distance. Better motion rendering UHD requires a minimum of 100 frames per second for smoother motion rendering. Figure 7:

Motion rendering at 50 frames per second

Source: Envivio

This can be made possible with HFR (Higher Frame Rate) technology. This provides more fluid motion and details that may not be recognised in images that have lower frame rates. Again, the encoding is expected to increase by 20% with this technology.

Deployment phases DVB (Digital Video Broadcasting) has unveiled a roadmap for UHD deployment. This introduction is broken down into three phases:  DVB Phase 1, with decoders available in 2014-2015. The main limitation here is with the frame rate. The limit is 10 bits/s and 60 frames/second, with 8 megapixel images.  DVB Phase 2, with decoders available in 2017-2018. Frame rates are expected to reach 120 frames/second (HFR).  DVB Phase 3, for better quality with UHDTV2 (8K), composed of 33 megapixel images. The first decoders will not be available before 2020.

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Ultra High Definition: A new growth driver for satellite

Figure 8:

Forecasts for the launch of the various UHD phases

Source: DVB

Based on the preceding points (particularly frame rates and dynamic range), many players are now focusing on phase 2, which seems most able to provide the required quality for the format.

2.3.2. HEVC a necessity As mentioned earlier, 4K provides a resolution four times higher than that of 1080p HD, which is the best HD quality. If using the same coding technologies (namely MPEG-4 or H.264), data rates would therefore be four times higher than that needed for 1080p HD. Given the spectrum resource constraints of each network (primarily DTT, cable and DSL), none of these networks would be able to broadcast these types of programs with such encoding. To overcome this problem, a new, more efficient codec is essential. The HEVC codec (also called H.265) provides more compression. It aims to reduce encoding to produce the same video quality offered by the previous generation of codecs. It is currently being jointly developed by ISO/IEC Moving Picture Experts Group (MPEG) and ITU-T Video Coding Experts Group (VCEG). In theory, it provides a 50% bit rate reduction compared to the previous technology (MPEG-4 AVC or H.264). According to experts, a 30% gain is expected initially to maintain a similar quality, which will be key to the success of UHD. HEVC offers two potential benefits because it can be used to:  provide the same level of video quality but at half the bit rate (and deploy more channels on the same satellite transponder or a DTT multiplex, for example)  double the level of video quality at the same bit rate, which is where UHD fits in

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Figure 9:

Specifications and impact of HEVC

Source: PC World

HEVC adoption could take place soon, from 2015. High demand for UHD services could lead to rapid deployment of HEVC-ready equipment. Figure 10:

Video bit rates according to coding technology

Source: SES

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Figure 11:

Roadmap for adoption of the HEVC codec

Source: Ericsson

The availability of HEVC on the various networks will be the trigger for the introduction of UHD on these networks.  With its large available capacity, satellite should be a major UHDTV distribution network.  OTT video players seem to have come out fighting in this area and might be willing to use FTTH/B infrastructures to offer 4K content, probably via progressive download initially.  Managed fibre networks (Verizon has said it is ready) and cable TV networks can also carry UHDTV.  As for terrestrial networks, their lack of radio frequencies leaves fewer opportunities for them. However, terrestrial operators could address this issue in the second round of the digital dividend at the WRC conference in 2015. These points will be addressed in more detail in the following sections. Nevertheless, a change in codec will require the various equipment on the market to be replaced, as was the case during the transition to MPEG-4. Only OTT services will be unaffected by this because consumers will only have to download a new player. This issue could be a real barrier to adoption on traditional networks because households have only just upgraded for the analogue to digital switch over.

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