June 10, 2015
According to David Watkins, Strategy Analytics’ Director Connected Home Devices, Sky is set to lose the TV innovation lead to BT for the first time in over 20 years, following the telco’s announcement of a Ultra-HD sports channel launch. “Being first to market with a UHD sports channel may just tempt a few more customers from BT’s rivals to jump ship,” he suggests.
“BT will be hopeful of stealing a march on Sky and Virgin. It’s already become a serious threat to Sky’s dominance by spending vast amounts to secure premium sports broadcast rights,” he notes. “Assuming BT looks to deliver its UHD service over its managed IPTV network then it will presumably need to deploy new set-top boxes into subscriber homes capable of decoding 4K signals which will not be cheap and may well slow the rate of uptake of the service,” he advises, adding that the bandwidth-hungry nature of UHD content will mean that BT will be restricted in offering its service to its fibre customers only.
“UHD TVs are flying off the shelves, rapidly creating a viable market for UK pay-TV operators to address with next-generation UHD TV services. Product availability, falling price points and growing consumer awareness of the benefits of Ultra HD are all contributing to healthy growth within the UHD TV display market,” he observes.
“Given the current lack of sufficient UHD content and infrastructure work required to support a 24 hour linear channel, the first UHD pay-TV services are likely to be delivered on demand,” he says
Despite being beaten to the punch by BT’s announced service launch, Watkins says that Sky would appear to be in a favourable position to launch a UHD service, considering that SES Astra has already demonstrated a UHD channel using the very satellite that Sky uses for its services. “However, the company has refused to confirm any plans for a UHD service – citing its concern over the lack of industry standards, he adds.
BT Sport’s first UHD broadcast will be The Community Shield match between Chelsea and Arsenal on August 2nd.
Among Strategy Analytics’ findings on the UK UHD and pay-TV markets:
- UHD TV shipments will grow 225 per cent in 2015 to over 700,000 or 10 per cent of all TVs shipped (up from just over 200,000 units in 2014)
- Around 850,000 homes will own a UHD TV by the end of 2015 – 3 per cent of all TV households. Rising to 8 per cent by the end of 2016, 23 per cent by 2018 and over 40 per cent by 2020.
- Pay-TV subscriptions reached 17.4 million by the end of 2014 – Sky and Virgin Media accounting for 81 per cent market share
- BT TV has 6 per cent of UK pay-TV subscriptions, but a UHD service could be the catalyst that takes that share into double figures within the next two-to-three years.
