Developing markets can be a difficult thing to try and penetrate for broadcasters. However, with the rise of HD, broadcasters have a unique avenue to reach new audiences.
HD provides an opportunity for broadcasters to enhance the viewer experience and stay ahead of the curve. In more developed markets, HD has become an expectation. In developing markets, however, there is a gap that broadcasters can fill through HD to connect with these audiences in a way that they have had little access to in the past. Eutelsat research has shown extensive evidence which suggests that HD can provide massive benefits for broadcasters in these developing markets.
Five reasons HD will benefit broadcasters in developing markets
SD to HD - The positive impact on audiences
“People were surprised and very happy. They couldn’t believe that we could produce such a quality signal in TV... People have increasingly bought new TV sets and HD decoders having seen the quality of our channel.” (Broadcaster from Sub-Saharan Africa)
HD offers a unique experience for audiences. With an improved quality in images and channels, audiences can enjoy entertainment and information avenues that just look better. This makes offering HD early a prominent competitive advantage over channels who do not yet have HD. It also allows audiences to have access to something that will inevitably make them happier while engaging for longer with the content broadcasters have for them in HD. Bringing HD in as quickly as possible means that broadcasters can show their audiences that they value their investment, and go beyond their competitors. This will directly impact their overall satisfaction with the broadcasting service, creating a lasting and positive brand impression whilst keeping audience numbers up for advertisers.
Bargaining position with affiliates
“If you’re HD in Africa, you’re seen as a bright new channel… you bring something different to the viewers on top of the content itself…. With HD, viewers are happy and [platform] operators are happy because they have got something more to offer their viewers.” (Broadcaster from Western Europe)
Introducing HD to regions with less developed markets means bringing something new and exciting on top of the content you already provide. For smaller, local operators, bringing HD to the table means opening an avenue to which they haven’t had access before - as such, they will not take this for granted. In some cases, broadcasters could even be in a position to obtain higher advertising revenues, as HD has been proven to attract larger audiences and hold their attention for longer. These factors will then put broadcasters in a prime negotiating position with affiliates, putting them in charge of HD’s future in developing markets.
Increased interest from Pay-TV and advertisers
“Most advertisers prefer our channel for commercials. It’s been a great beginning and a breakthrough for our country.” (Broadcaster from Sub-Saharan Africa)
HD offers higher audience numbers and longer viewing times - both of which attract Pay-TV operators and advertisers. With an increase in interest from broadcasters in less developed markets, Pay-TV affiliates and advertisers will likely be interested in working with HD broadcasters to achieve the market penetration goals they have and assist in establishing HD as the new normal. An increase in audience awareness of HD means an increase in customers investing in equipment that can provide them with a better quality image and HD access. That means that not only will the market open up for broadcasters but also for advertisers and affiliates who invest in HD. These aspects feed into each other; the more customers get interested in HD, the more advertisers will be willing to pay for space on these channels, to promote their content in this higher quality environment.
Increased revenues
“For small local operators, adding an HD channel strengthens their HD offer and they don’t take it for granted.” (Broadcaster from Central & Eastern Europe)
Eutelsat research has shown that early adoption of HD in developing markets has directly led to increased revenue for broadcasters who invest in them. The early migration in developing markets towards HD can increase viewership, making broadcasters who invest in HD more attractive to advertisers. More opportunities exist to reach audiences who haven’t been as present in the market because of the increased viewership.
Positive impact on brand impression
“We have to be in HD, we cannot be SD only. It’s for the brand to make sure that we’re seen the best.” (Broadcaster from MENA)
HD broadcasting helps you position your brand to be taken seriously as a quality provider of entertainment and information. It provides broadcasters with the leverage they need when it comes to the quality of their brand and the feelings associated with it. This positive brand impression helps keep audience attention and attract new viewers who channel surf. In emerging markets, it provides a competitive differentiator and in developed markets it protects against a negative interpretation of your quality. In either case, brand impression is directly associated with the HD quality - for better or for worse.
Investing in an HD future - the correct choice for broadcasters
Overall, investing in HD in developing markets provides more space for these markets to mature. A positive brand impression, increase in revenue, increased interest from advertisers, better negotiating abilities, and a satisfied audience all provide space for the broadcaster to learn and evolve. Through developing markets, broadcasters can use HD to their advantage and become a pioneer in providing entertainment and information channels to customers. This will directly help these markets grow and allow the broadcaster to bring in a new aspect of TV viewing that might not have been seen before. All in all, everybody wins.
If you would like to explore HD broadcasting opportunities across developing regions, Eutelsat should be your first choice. Eutelsat provides superior reach and reliability to broadcasters in these areas and has the tools, technology, knowledge and support you need to succeed in your ventures. Contact Eutelsat today, and discover a new world of broadcasting opportunity.