Since it was first announced, 4K (4K UHDTV) has been met with both excitement and skepticism within and outside of the media industry. According to new research from Intelsat S.A., 4K UHDTV will be main stream within 10 years.
The Intelsat survey showed that 42% of survey respondents stated that they have made a firm decision to launch a 4K UHDTV service and have a specific timeframe for its roll out (23% within the next four years). The main driver cited by media companies was the ability to provide the competitive differentiation necessary to attract new subscribers to their linear broadcast and cable television channels.
Intelsat surveyed technical and non-technical (primarily marketing) media executives from its global customer base, which is comprised of many of the world’s largest media companies that conduct business on a regional and global basis.
While the majority of respondents believe that 4K UHDTV adoption is inevitable–in stark contrast to initial views of the 3DTV trend from several years ago–there is disparity in terms of what segments and business models are regarded as likely to adopt 4K UHDTV first, with non-technical executives having significantly different views from technical executives. Digital cinema (38%), over the top (OTT) and direct-to-home (DTH) are the most widely mentioned segments for 4K UHDTV to gain momentum and those views differ sharply between technical and non-technical participants. In addition, 60% point to video on demand as the business model expected to first gain momentum, almost double the 34% stating that linear channels will be the first to do so.
“While it is becoming more evident that the transition to 4K UHDTV is highly likely, the road to adoption will take many paths, given the business model evolution resulting from the multi-screen viewing environment,” stated Peter Ostapiuk, Vice President, Media Product Management, Intelsat.
The survey revealed also that the pace of 4K UHDTV adoption will vary by region. For example, 47% believe 4K UHDTV will first take hold in Asia Pacific; 34% expect North America to be the early adopter and only 16% believed Western Europe would be the first to roll out the new technology.
Critical factors remain to be resolved.
While Media Professionals are optimistic about 4K UHDTV, both technical and business questions remain unanswered. Respondents cited higher transmission and content production costs (67%), availability of more efficient transmission technologies (62%), affordable television sets (51%) and ability to achieve a return on their investment (71%) as issues of greatest concern to them going forward.
Roughly a third of those surveyed stated that a critical mass of content (38%), sufficient household penetration (35%) and available 4K UHDTV-enabled set top boxes (31%) are important factors in accelerating the roll-out of 4K UHDTV. Movies (53%) and sports (42%) are the most widely identified types of 4K UHDTV content expected to gain momentum first.
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