Satellite Today

Streaming Media: Rebounding With Strong Profit Potential

 Archives Copyright

By Nick Mitsis

Satellites are still the best way to reach multiple points with large quantities of content in the most economical way. Even so, applications like Internet streaming have a few more years of development ahead before sufficient broadband connections and revenue models to collect payments for content are totally resolved.

In the meantime, satellite-streaming ventures have triggered a spur of new services, and consumers and enterprises alike are displaying an enormous appetite for streaming content. As more users direct their PCs onto the rich media fast lane, the demand for satellite-based streaming content is likely to soar.

Research Indicates Growth

Documentation of increased Internet usage is available. In Europe, for example, Germany remains the continent's leading Internet market, according to a survey released in late 2002 by Information et Publicite. Spending an average of 522 minutes online a month, German Internet navigators are well ahead of runners-up Spain (495 minutes) and France (476 minutes).

As far as e-commerce and revenue figures go, natives under the Union Jack flag are leading Europe. Surfers in the United Kingdom spent almost 6.5 billion Euros ($6.5 billion) online in 2001, compared to Germany's roughly 5 billion Euros, ($5 billion). Great Britain also leads Europe when it comes to online advertising, but falls behind Germany, which accounts for roughly a quarter of all European Internet users, according to the study's findings.

These European figures materialized, however, within a region that still lags in the amount of Internet accessibility. According to the study, only 40 percent of Europeans had access to the Net in the first half of 2002, as opposed to 59 percent of Americans who were able to log onto the information highway.

Satellite Industry Reacts To Growth

Many satellite service providers are reacting to the Internet usage surge, refocusing from mere space segment brokers to value service providers. "Value service is where it's at now, not simply mere capacity," says Patrick Van Beveren, product manager of satellite services for Belgacom. The Belgium telecommunication company offers local and international voice and data services, cellular telephone services, satellite services, carrier services and all Internet-related services.

"Two years ago Internet services were a booming business, but now, it is more challenging given the present economic environment," observes Van Beveren. "Value streaming media services such as e-learning, video programming, corporate training, in-store advertising and interactive features is where the market is growing."

Belgacom is striving to take advantage of this market surge by increasing its satellite services. Recently, it launched its Belgacom Multimedia Over Satellite package. This service, using IP multicast technology, enables companies to distribute any type of digital content (data, video, audio) simultaneously to virtually an unlimited number of receiving sites across Europe via Eutelsat's Hot Bird 3 satellite.

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