M14321MRA Ultra High Definition ToC

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Satellite

Ultra High Definition

A new growth driver for satellite

M14321MRASeptember 2014

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


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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 theskills of its teams of specialized analysts. Now, with the support of more than 40 member companieswhich include manyof the digital economys most influential players the newly rebranded DigiWorld Institute has entered into a new stage ofits 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 JimenezP: +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, includingelectronically, without the prior written permission of IDATE.

IDATE, DigiWorld, DigiWorld Institute and DigiWorld Yearbook are the international registered trademarks of IDATE.

Author : Stphanie VILLARET, Co-Head Satellite-Aerospace Practice

Stephanie Villaret, Director of Studies, joined IDATEs Marketing and Strategies Department in

1998. After several years in the Media Economics Division, she is Co-Head of the SatellitePractice in the Telecom business unit since 2011.

Stephanie works primarily on reports concerning the satellite and aerospace industry, but alsodeals 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 andmedia usages, Prospective analysis of usages, Marketing analysis of consumer multimediaproducts and services and Business modelling.

Ms. Villaret is a graduate of the Institut National des Tlcommunications, with a major inInformation and Communication Technologies Applied Marketing, and holds a Masters Degree inManagement 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
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Ultra High Definition: A new growth driver for satellite

www.idate.org IDATE 2014 3

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 ....................................................... ................................................................. ...................................... 162.3.2. 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. DTT .................................................................................................................................................................. 21

3.1.2. Cable ......................................................... ................................................................. ...................................... 22

3.1.3. IPTV ................................................................................................................................................................. 25

3.1.4. OTT .................................................................................................................................................................. 27

3.1.5. 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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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. OTT leaders are focusing on 4K in their strategies .......................................................................................... 46

5.3.2.A way to assert their leadership in the face of traditional channels... .......................................................... ..... 46

5.3.3. ... and up against consumer electronics players......................................................... ...................................... 46

5.3.4. ... who are themselves adopting an OTT 4K distribution strategy .................................................................... 46

5.3.5.A potential obstacle: ISPs wanting to cap broadband speeds .......................................................... ................ 48

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

5.4.1. The difference in quality not discernible enough for consumers ................................................................ ....... 48

5.4.2. Business model questions .......................................................... ................................................................. ..... 49

5.4.3. Public service channels driving UHD forward ............................................................. ...................................... 49

5.4.4.A strong correlation between enthusiasm from channels and the presence of national equipment vendors .... 50

5.4.5. Gradual creation of a UHD content catalogue contributing to enhancing the quality of HD .............................. 51

5.4.6. Major channels interested in testing UHD over DTT .................................................. ...................................... 51

5.4.7. Development is likely to be driven by major international sporting events in the future .................................... 51

5.4.8. 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 ................................................................. ........................... 606.2.2. With growth expected to accelerate from 2019, this market could be a source of significant revenue for

satellite operators ............................................................ ................................................................. ................ 60


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Tables & Figures

Table 1: Key factors affecting demand for satellite as a TV/video broadcasting medium ...................................... 15

Table 2: Compatibility of UHDTV in MPEG-4 AVC, DTT ....................................................................................... 21

Table 3: Compatibility of cable with UHD using HEVC, DVB-C vs DVB-C2 ..................................................... ..... 23

Table 4: Satellite UHD compatibility in HEVC per 36 MHz frequency ............................................................... ..... 29

Table 5: Summary of satellite capacity rental costs for a SD/HD/UHD channel using DVB-S or DVB-S2 ............. 29

Table 6: Summary: Positioning comparison between different broadcast networks .............................................. 31

Table 7: TV price ranges by screen size, 2014 ................................................................ ...................................... 39

Table 8: UHD TV sales, 20142018 ...................................................................................................................... 41

Table 9: Features of STBs offered by various telcos and pay-TV operators, end of 2013 ..................................... 43

Table10: Growth in Free's ARPU ................................................................ ............................................................ 44

***

Figure 1: Positioning comparison between different broadcast networks ................................................................. 8

Figure 2: UHD TV sales by region, 2014-2018 ................................................................. ........................................ 9

Figure 3: Total UHD channels broadcast by satellite per geographic region, 20142018....................................... 11

Figure 4: Number of transponders used for broadcasting UHDTV services and UHD market valuation, worldwide,20142018 .............................................................. ................................................................. ................ 12

Figure 5: Resolution comparison for different generations ........................................................... ........................... 16

Figure 6: Comfortable viewing distances ................................................................ ................................................ 17

Figure 7: Motion rendering at 50 frames per second ........................................................ ...................................... 17

Figure 8: Forecasts for the launch of the various UHD phases ............................................................... ................ 18

Figure 9: Specifications and impact of HEVC ........................................................ ................................................. 19

Figure 10: Video bit rates according to coding technology ............................................................. ........................... 19

Figure 11: Roadmap for adoption of the HEVC codec ........................................................ ...................................... 20

Figure 12: Spectrum allocation ........................................................... ................................................................. ..... 22Figure 13: Example Spectrum Options .......................................................... ........................................................... 24

Figure 14: Implementation of OFDM in DOCSIS 3.1 ................................................................................................ 24

Figure 15: Comparison between different DOCSIS standards ....................................................... ........................... 24

Figure 16: Schedule for DOCSIS 3.1 equipment availability .......................................................... ........................... 25

Figure 17: xDSL performance ............................................................. ................................................................. ..... 26

Figure 18: Distribution of DVB-S/S2 use worldwide in 2013 .......................................................... ........................... 28

Figure 19: Gains from DVB-S2 ................................................................................................................................. 28

Figure 20: Growth in reach of various key positions, 2009-2012 ................................................... ........................... 30

Figure 21: Fibre and Docsis 3.0 network coverage, end of 2013 ............................................................................. 32

Figure 22: Subscriptions by speed, Europe, January 2014 ............................................................ ........................... 32

Figure 23: Number of HD channels broadcast by satellite worldwide, mid-2013 ...................................................... 33Figure 24: Proportion of HD channels broadcast by satellite worldwide, 2013 ........ ................................................. 34

Figure 25: Average mainstream prices of various TV technologies and their life cycle in 2014 ................................ 38

Figure 26: TV sales by region, 2014-2018 ................................................................ ................................................ 39

Figure 27: Connectable and non-connectable TVs sold worldwide .......................................................................... 40

Figure 28: Share of connectable and non-connectable TVs sold worldwide, by region ............................................ 40

Figure 29: UHD TV sales by region, 2014-2018 ................................................................. ...................................... 41

Figure 30: Distribution of Ultra-HD TV sales worldwide by geographical region in 2018 .......................................... 42

Figure 31: UHD TV installed base and penetration rates ............................................................... ........................... 42

Figure 32: Sony's 4K Video Unlimited service ......................................................... ................................................. 47

Figure 33: Netflix' UHD streaming at 15.6 Mbps ................................................................. ...................................... 47

Figure 34: UHD tests by South Korea's national broadcaster KBS with the documentary Colors: 4 Desires ........... 51Figure 35: List of forthcoming major sporting events, 20142020 ............................................................................ 52


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Figure 36: UHD programming test at the Sochi Olympic Games, early 2014 ........................................................... 54

Figure 37: Excerpt from Verizon's homepage .......................................................... ................................................. 54

Figure 38: Comparison of upload and download speeds among the main Internet service providers in the UnitedStates....................................................................................................................................................... 55

Figure 39: 4K demonstration by SES Astra at the IBC in Amsterdam in 2012 .......................................................... 56

Figure 40: The MediaPlay DST839 by Technicolor................................................................................... ................ 57

Figure 41: Total UHD channels broadcast by satellite worldwide, 20142018 ......................................................... 58

Figure 42: Total UHD channels broadcast by satellite per geographic region, 20142018....................................... 59

Figure 43: Total satellite transponders used for broadcasting UHD channels worldwide and by geographical region,20142018 .............................................................. ................................................................. ................ 61

Figure 44: Number of transponders used for broadcasting UHDTV services and UHD market valuation, worldwide,20142018 .............................................................. ................................................................. ................ 61

List of case studies

BBC............................................................................................................................................................................ 50

Comcast................................................................ ............................................................... ...................................... 53

Free............................................................................................................................................................................ 44

Netflix.................................................................................................................................................................. 27 ; 47

Sky Deutschland........................................................... ................................................................. ........................... 57


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2. Methodology & definitions2.1. General methodology of IDATE's reports

The methods employed by IDATEs teams of analysts and consultants are based on an approach thatcombines:

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 networkof market analysts.

More specifically, the tools employed by IDATEs teams are as follows:

1/ A multi-disciplinary team of full-time consultants, specialised by sector of activity

IDATEs analyses are performed primarily by our in-house consultants, and very occasionally byfreelance market analysts. This approach allows us to capitalise on our pool of expertise throughteamwork, sharing knowledge, ideas, contacts, viewpoints and key data. Each report is drafted by a teamof 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 interviewswith the sectors decision-makers, and on secondary data which is established by cross-referencingpublic 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 proprietarydatabases that trace the central chapters in the history of our sectors of expertise.

Companies: IDATEs in-house data service tracks the latest news and events to come out of the toptelecom, Internet and media industry companies around the globe. Innovative firms and start-ups aremonitored by the market experts in the different Practices.

Markets: IDATEs databases are derived from rigorous processing of fundamental economic variables(GDP, investments, exchange rates, demographics, etc.) and their relation to decisive sector-specificand national elements (capex, national market dynamics, etc.).

Technologies: IDATEs organisation by Practice provides us with an efficient means of trackinginnovation. IDATEs engineers ensure in-depth understanding of the changing shape of products andservices 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, thedecisive forces (technologies, regulation, consumption) and the players involved. Particular emphasis isgiven to market assessments and forecasts, as part of the central premise. All market reports are laid outin 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 inthe 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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a market model is then established, making it possible to test the hypotheses that have an impact onthe markets development, and validated by a new round of interviews;

and, finally, the reports conclusions are debated with the team responsible for the project and withexpert consultants from the various fields involved;

a final proofreading and editing/revision process, prior to the production of the final version of thereport 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 hasprovided some estimates in the final part of this report on penetration of this new service via DTHbetween 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 UHDchannels 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 analysedusing the major geographic regions of Europe, North America, Latin America, AsiaPacific andAfricaMiddle East.

3/ Estimates for number of TV services

For each region, the number of television services broadcast free of charge (free TV) and broadcast aspart of a pay-TV offering were identified using information provided by Lyngsat's website, and accordingto the following classification: analogue channels, standard digital channels, High Definitionchannels, 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) toestimate changes in the number of TV channels over the analysis period (20142018), by type of TVservice.

4/ Estimates for required broadcast capacity

The capacity required for distributing television services was calculated by type of service, by combiningtwo 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 compressionstandards, 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 aset 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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Assumptions were differentiated according to the various geographical regions analysed, based oncertain 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 Impact

Number of analogue channels Analogue switch-off already complete in Europe and North America

Stabilisation before likely decline from 2018 in other areas (expected delay inswitch-off process in some countries, particularly in Africa)

Number of SD* channels Probable decrease in the number of channels over the period in Europe andNorth America, given the difficult economic and competitive conditions: risinginfluence of OTT players, slower growth in the advertising market, audiencefragmentation 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 inhousehold equipment levels, growth in average purchasing power

Number of HD* channels Growth in all regions, especially in Europe and North America, where it is themain reason for growth in satellite capacity demand over the period

SD/HD simulcast to continue over the period due to the considerable installedbase of set-top boxes

Number of interactive services Moderate growth in all regions: launch of some interactive services to meetgrowing consumer demand for interactivity

Minor impact on demand for satellite in view of the limited number of servicesconcerned

Number of 3D channels Slight decline worldwide: this technology is likely to remain niche, mainly limitedto a few VOD channels

Number of UHD* channels Launch of a few test channels from 2015 in Europe, North America and Asia

Broadcast technical standards Widespread use of MPEG-2 compression for SD channels

Almost exclusive use of MPEG-4 compression for HD channels: decreasesbandwidth 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 NorthAmerica where DVB-S still dominates: decreases bandwidth requirements byabout 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

Average bandwidth by channelor service type

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 20142018 period areexpressed 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 EURper year in other regions.


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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 ofhigh-definition television (HDTV).

Consumer electronics manufacturers presented the first high-end UHDTV equipment at the beginning of2013 (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 of16:9.

4K Ultra-HD (2160p), has a resolution of 3840 x 2160 (8.3 megapixels). It is roughly equivalent todigital cinema (DCI) 4K and has four times as many pixels as Full HD (1080p). Digital cinema differsslightly 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 (33.2megapixels) 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 Numriques, July 2014

In addition to the big boost in terms of image quality, sound quality is also increased significantly withUltra-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 isbased on 8K.

Immersive experience

4K screens will not necessarily create an immersive UHDTV experience. However, EBU is working withits 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 thetime the first reinvestments in existing HD infrastructures are planned.

This will require using a combination of advanced image and audio immersive technologies and newinfrastructures throughout the technical chain.

Higher Dynamic Range (HDR) technology should help to improve the image. Encoding will increase by20% with this technology.

However, the diagram below shows how viewing angles and distance from the screen already varybetween SD (left), HD (centre) and Ultra-HD (right).


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Figure 6: Comfortable viewing distances

Source: phonandroid

This shows that as well as better resolution, UHDTV also provides an immersive user experience thanksto 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 motionand details that may not be recognised in images that have lower frame rates. Again, the encoding isexpected to increase by 20% with this technology.

Deployment phases

DVB (Digital Video Broadcasting) has unveiled a roadmap for UHD deployment. This introduction isbroken 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 120frames/second (HFR).

DVB Phase 3, for better quality with UHDTV2 (8K), composed of 33 megapixel images. The firstdecoders will not be available before 2020.


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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 nowfocusing on phase 2, which seems most able to provide the required quality for the format.

2.3.2. HEVC a necessity

As mentioned earl ier, 4K provides a resolution four times higher than that of 1080p HD, which is the bestHD quality. If using the same coding technologies (namely MPEG-4 or H.264), data rates would thereforebe four times higher than that needed for 1080p HD.

Given the spectrum resource constraints of each network (primarily DTT, cable and DSL), none of thesenetworks 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 producethe same video quality offered by the previous generation of codecs. It is currently being jointly developedby 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 orH.264). According to experts, a 30% gain is expected initially to maintain a similar quality, which will bekey 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 samesatellite 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 onthese 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/Binfrastructures 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 wasthe case during the transition to MPEG-4. Only OTT services will be unaffected by this becauseconsumers will only have to download a new player.

This issue could be a real barrier to adoption on traditional networks because households have only justupgraded for the analogue to digital switch over.

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M14321MRA Ultra High Definition ToC