NSR Report sees Satellite Capacity Pricing Stabilizing, yet Increasingly Complex Period for Pricing Negotiations
May 31 2022 - 9:55AM
NSR’s
Satellite Capacity Pricing Index,
8th Edition finds
Satellite Operators sitting at a crossroads of multiple
macro-economic headwinds, external competitive pressures, and
supply chain challenges, driving need for innovative strategies. As
pricing stabilizes in Q2 2022, technology efficiencies,
supply-demand gap and macro-economic factors trigger increasingly
complex pricing negotiations.
For some service providers, such as SpaceX, inflation pressure
enables an increase in end-user pricing; however, due to
competitive pressures, many wholesale capacity providers do not
have the bargaining power to significantly increase pricing.
In addition, the geopolitical crisis in Europe, C-band
repurposing in many regions, currency devaluation in emerging
markets and general economic slowdown all contribute to increased
uncertainty for sustained demand growth in video and connectivity
markets.
Competitive threat from OTT and dwindling TV advert revenues
continue to plague the Video/DTH market. However, delays in high
throughput satellite launches help operators drive up fill rates
from 40-55%, recorded in 2019-2020 (traditional widebeam
satellites) to 65-80% in high demand markets.
“Looking towards 2023, indicators suggest a return to more
pricing pressure as newly-launched VHTS and Non-GEO constellations
intensify competition in high data-rate markets,” notes NSR Analyst
and report author Joseph Ibeh. “Economic slowdown and recession
fears will drastically reduce advertising budgets, further causing
video/DTH market pricing to plummet. Overall, NSR expects continued
CAPEX efficiency in new satellite systems to help operators sustain
lower pricing points.”
About the ReportNSR’s
Satellite Capacity Pricing Index,
8th Edition offers the
industry’s leading resource on satellite capacity pricing.
Presenting detailed satellite capacity lease pricing,
SCPI8 examines the most current spot price index
for Q2 2022, anticipated price ranges, 4-year historical data and a
2-year forecast pricing for 2022-23. Assessing YoY and historical
price changes across 15 application and frequency band segments,
SCPI8 analyses pricing dynamics across 18 factors,
bringing down index and forecast pricing to a $/Mbps/MHz/Month
basis.
For additional information on this report, including a full
table of contents, list of exhibits and executive summary, please
visit www.nsr.com or call NSR at +1-617-674-7743.
Companies, Organizations, and
Investors Mentioned
in NSR’s SCPI8:
Anuvu, APSTAR, Arabsat, Avanti, ABS, Disney, EchoStar, Eutelsat,
Gogo, HellasSat, Hispasat, HughesNet, Inmarsat, Intelsat, Kacific,
Netflix, OneWeb, Panasonic, SES, SpaceX, Thaicom, Telesat, ViaSat,
and Yahsat.
About NSR
(www.NSR.com)
Northern Sky Research (NSR) is the leading global market
research and consulting firm focused on the satellite and space
sectors. NSR’s global team, unparalleled coverage and anticipation
of trends with a higher degree of confidence and precision than the
competition is the cornerstone of all NSR offerings. First to
market coverage and a transparent, dependable approach sets NSR
apart as the key provider of critical insight to the satellite and
space industries.
NSR primary areas of expertise include satellite and wireless
networks, emerging technology, and media applications. Our services
and clients cover the entire globe. With extensive expertise in all
geographic regions, NSR is a leading provider of in-depth market
insight and analyses. Since each NSR product is based on future
perspectives, our analyses allow our clients to stay a step ahead
of the competition and plan for future opportunities in all
markets.
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Contact us at Kristen.Kloster-Grady@analysysmason.com to discuss
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