NSR Report Sees Satellite Capacity Pricing Stabilizing, yet Increasingly Complex Period for Pricing Negotiations
Satellite Operators sit at Capacity Pricing Crossroads with Macroeconomic Headwinds, External Competitive Pressures, and Supply Chain Challenges
Cambridge, MA – May 31st, 2022- NSR’s Satellite Capacity Pricing Index, 8th Edition finds Satellite Operators sitting at a crossroads of multiple macroeconomic 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 macroeconomic 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 Report
NSR’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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