RRSat
Encyclopedia
RRSat Global Communications Network Ltd is an Israeli based provider of global content management and distribution services to the television
and radio
broadcasting industries. Their services include Uplink
, Downlink, Playout
and Turnaround to more than 365 television
channels and radio
channels, covering more than 150 countries.
Through its proprietary "RRSat Global Network," composed of satellite
and terrestrial fibre optic
transmission
capacity and the public Internet, it offers global distribution services for content providers. RRSat’s content management services involve the digital
archiving and compilation
of a customer's programming and advertising
content into one or more broadcast
channels, with the ability to customize broadcast channels by target audience.
The Company’s services can be divided into three main groups:
of television stations including the uplink (transmitting the video), downlink (receiving the video) and basic turnaround (receive and transmit). RRSat provides continuous year-round global distribution services via satellites or terrestrial fiber optic for its customers. Moreover, RRSat provides video broadcast on an occasional basis, with turnaround between any two continents.
channel feeds. Valued-added services may include insert advertisings, audio
dubbing, inserting subtitles, standard conversion
, encrypting, encoding
and all other technical requirements.
systems throughout the Middle East
. The Company also uses “Flyaway Systems”, or which are freestanding satellite
uplink
systems that can be disassembled and transported in packing cases to the scene of an urgent news story.
i Ministry of Communications .
Over the last five years, RRSat has grown revenue
s by 42% (CAGR) yearly and it expects revenue
in 2007 to be between $55.5-56 million. RRSat's adjusted net income in 2006 was $8.1 million, and net margin at 18.7%.
Digital technology trends, such as the digitization of content, the introduction of high definition television (HDTV) and Internet protocol television (IPTV
), as well as the ongoing shift to digital transmission, have led to a rapid growth in the number of broadcast channels with customized content, targeted at ever more finely segmented audiences both at the regional and global level. The number of satellite channels has increased from about 1,000 in 1995 to an estimated 13,000 in 2005 and is projected to grow to 29,000-plus in 2013. In revenue terms the satellite content distribution business grew 18% per year to $13 billion in the 1995-2000 period, and is expected to further expand in line with the increase in number of channels.
Through the unique geographical location of RRSat’s Re'em Teleport
in southern Israel
, and its independent optimized global network, the Company can reach 95% of the globe with only one satellite
‘hop’. In addition to its unique geographic position, the complexity of RRSat’s global distribution infrastructure, built over many years, provides a high barrier to entry for a new competitors.
sector generated revenues of approximately $13 billion per year and was a critical component of the global satellite communications industry, producing over 23% of world satellite
services revenue
.
Some trends are expected to lead to increased demand for global satellite and terrestrial fiber network distribution are:
are expected to lead to even greater increases in the number of channels available. According to Informa Telecoms & Media, a market research firm, the number of homes with HDTV services is expected to increase by a compounded annual growth rate of 52% from 2005 to 2010. The wider adoption of these technologies will require increased bandwidth, which will amplify the value of infrastructure providers.
s, Flyaway and Transportable Uplink
and Downlink systems with dishes for C-Band, Ku band
and Ka-Band (2.4m to 12m). Using more than 30 advanced digital MCPC platforms RRSat enables direct to home (DTH) coverage.
2A (Eurasiasat-1), Amos
1, Amos
2, Eutelsat
W2, Turksat
1C, Eutelsat
W1, Intelsat
4 (PAS-4)
(IA-5) and AMC-4
.
907, AB
-1 and Galaxy 23
.
-5 (Thaicom
-3), Intelsat
-10 (PAS-10), Yamal
-200, Insat 2E (APR 1), Eutelsat
W5.
-B3 and Intelsat
8 (PAS-8), Asiasat-4
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
and radio
Radio
Radio is the transmission of signals through free space by modulation of electromagnetic waves with frequencies below those of visible light. Electromagnetic radiation travels by means of oscillating electromagnetic fields that pass through the air and the vacuum of space...
broadcasting industries. Their services include Uplink
Uplink
A telecommunications link is generally one of several types of information transmission paths such as those provided by communication satellites to connect two points on earth.-Uplink:...
, Downlink, Playout
Playout
In broadcasting, playout is a term for the transmission of radio or TV channels from the broadcaster into broadcast networks that delivers the content to the audience...
and Turnaround to more than 365 television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
channels and radio
Radio
Radio is the transmission of signals through free space by modulation of electromagnetic waves with frequencies below those of visible light. Electromagnetic radiation travels by means of oscillating electromagnetic fields that pass through the air and the vacuum of space...
channels, covering more than 150 countries.
Through its proprietary "RRSat Global Network," composed of satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
and terrestrial fibre optic
Optic
Optic may mean:* optic, a British term for a device for dispensing fixed amounts of alcoholic spirits* Optics, the study of the behavior and properties of light* An optical element or component, such as a lens, prism, or mirror...
transmission
Transmission (telecommunications)
Transmission, in telecommunications, is the process of sending, propagating and receiving an analogue or digital information signal over a physical point-to-point or point-to-multipoint transmission medium, either wired, optical fiber or wireless...
capacity and the public Internet, it offers global distribution services for content providers. RRSat’s content management services involve the digital
Digital
A digital system is a data technology that uses discrete values. By contrast, non-digital systems use a continuous range of values to represent information...
archiving and compilation
Product bundling
Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business , in the cable television industry Product bundling is a marketing strategy that involves offering several products for sale as...
of a customer's programming and advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
content into one or more broadcast
Broadcast
Broadcast or Broadcasting may refer to:* Broadcasting, the transmission of audio and video signals* Broadcast, an individual television program or radio program* Broadcast , an English electronic music band...
channels, with the ability to customize broadcast channels by target audience.
The Company’s services can be divided into three main groups:
Teleport Services
This involves the basic transportTransport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...
of television stations including the uplink (transmitting the video), downlink (receiving the video) and basic turnaround (receive and transmit). RRSat provides continuous year-round global distribution services via satellites or terrestrial fiber optic for its customers. Moreover, RRSat provides video broadcast on an occasional basis, with turnaround between any two continents.
Value Added and Playout Services
A portion of the television channels that RRSat distributes also have the Company store the content, create the playlists and edit the content to create the televisionTelevision
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
channel feeds. Valued-added services may include insert advertisings, audio
Sound
Sound is a mechanical wave that is an oscillation of pressure transmitted through a solid, liquid, or gas, composed of frequencies within the range of hearing and of a level sufficiently strong to be heard, or the sensation stimulated in organs of hearing by such vibrations.-Propagation of...
dubbing, inserting subtitles, standard conversion
Data conversion
Data conversion is the conversion of computer data from one format to another. Throughout a computer environment, data is encoded in a variety of ways. For example, computer hardware is built on the basis of certain standards, which requires that data contains, for example, parity bit checks....
, encrypting, encoding
Encoder
An encoder is a device, circuit, transducer, software program, algorithm or person that converts information from one format or code to another, for the purposes of standardization, speed, secrecy, security, or saving space by shrinking size.-Media:...
and all other technical requirements.
Satellite News Gathering (SNG)
RRSat operates a fleet of satellite broadcast vans, providing mobile uplinkUplink
A telecommunications link is generally one of several types of information transmission paths such as those provided by communication satellites to connect two points on earth.-Uplink:...
systems throughout the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
. The Company also uses “Flyaway Systems”, or which are freestanding satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
uplink
Uplink
A telecommunications link is generally one of several types of information transmission paths such as those provided by communication satellites to connect two points on earth.-Uplink:...
systems that can be disassembled and transported in packing cases to the scene of an urgent news story.
History
RRSat was founded in 1981 by Mr. David Rivel and has two strategic partners: the Intergama Investment Group. and Kardan Group. Both major public holding companies, traded on the TASE. RRSat operates under license from the IsraelIsrael
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
i Ministry of Communications .
Over the last five years, RRSat has grown revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s by 42% (CAGR) yearly and it expects revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
in 2007 to be between $55.5-56 million. RRSat's adjusted net income in 2006 was $8.1 million, and net margin at 18.7%.
Investment Thesis
Around 90% of RRSat’s revenues come from long-term contracts, and its revenue backlog, currently (as of the end of ) at over $100 million, provides excellent visibility. In addition, RRSat uses long term leases for satellite and fiber optic transmission capacity, allowing the Company maximum visibility while protecting its profit margins, minimizing capital expenditure and adequately aligning operating expenses with revenues.Digital technology trends, such as the digitization of content, the introduction of high definition television (HDTV) and Internet protocol television (IPTV
IPTV
Internet Protocol television is a system through which television services are delivered using the Internet protocol suite over a packet-switched network such as the Internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats.IPTV services...
), as well as the ongoing shift to digital transmission, have led to a rapid growth in the number of broadcast channels with customized content, targeted at ever more finely segmented audiences both at the regional and global level. The number of satellite channels has increased from about 1,000 in 1995 to an estimated 13,000 in 2005 and is projected to grow to 29,000-plus in 2013. In revenue terms the satellite content distribution business grew 18% per year to $13 billion in the 1995-2000 period, and is expected to further expand in line with the increase in number of channels.
Through the unique geographical location of RRSat’s Re'em Teleport
Earth station
A ground station, earth station, or earth terminal is a terrestrial terminal station designed for extraplanetary telecommunication with spacecraft, and/or reception of radio waves from an astronomical radio source. Ground stations are located either on the surface of the Earth, or within Earth's...
in southern Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
, and its independent optimized global network, the Company can reach 95% of the globe with only one satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
‘hop’. In addition to its unique geographic position, the complexity of RRSat’s global distribution infrastructure, built over many years, provides a high barrier to entry for a new competitors.
Growing Addressable Market
According to a 2005 report by the World Teleport Association, in 2003 the teleportEarth station
A ground station, earth station, or earth terminal is a terrestrial terminal station designed for extraplanetary telecommunication with spacecraft, and/or reception of radio waves from an astronomical radio source. Ground stations are located either on the surface of the Earth, or within Earth's...
sector generated revenues of approximately $13 billion per year and was a critical component of the global satellite communications industry, producing over 23% of world satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
services revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
.
Some trends are expected to lead to increased demand for global satellite and terrestrial fiber network distribution are:
Globalization of content
Content providers are increasingly offering their programming on a global scale.Expanding channel line-ups
Competition between networks for audience and competition between service providers for customers, as well as satellite providers' offering local channels and localized content, are all catalysts for a larger number of channels.New broadcasting technology
Increased high definition television (HDTV) adoption and digital simulcastSimulcast
Simulcast, shorthand for "simultaneous broadcast", refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. For example, Absolute Radio is simulcast on both AM and on satellite radio, and the BBC's Prom concerts are often...
are expected to lead to even greater increases in the number of channels available. According to Informa Telecoms & Media, a market research firm, the number of homes with HDTV services is expected to increase by a compounded annual growth rate of 52% from 2005 to 2010. The wider adoption of these technologies will require increased bandwidth, which will amplify the value of infrastructure providers.
Emergence of Internet protocol television
New service providers offering video over broadband, or Internet protocol television (IPTV), open the door for new content providers to enter the industry. The provisioning of a network such as RRSat Global Network, which integrates satellite-based and terrestrial fiber optic capacity will be required to accommodate the rapid and reliable transmission of the vast amounts of information underlying the growth in traffic and content created by IPTV. According to Informa Telecoms & Media, the number of homes with IPTV services is expected to increase by a CAGR of 57% from 2005 to 2010.Digital Platforms
RRSat uses TeleportEarth station
A ground station, earth station, or earth terminal is a terrestrial terminal station designed for extraplanetary telecommunication with spacecraft, and/or reception of radio waves from an astronomical radio source. Ground stations are located either on the surface of the Earth, or within Earth's...
s, Flyaway and Transportable Uplink
Uplink
A telecommunications link is generally one of several types of information transmission paths such as those provided by communication satellites to connect two points on earth.-Uplink:...
and Downlink systems with dishes for C-Band, Ku band
Ku band
The Kμ band is a portion of the electromagnetic spectrum in the microwave range of frequencies. This symbol refers to —in other words, the band directly below the K-band...
and Ka-Band (2.4m to 12m). Using more than 30 advanced digital MCPC platforms RRSat enables direct to home (DTH) coverage.
Europe, Middle East, North Africa
Hotbird-8 (Hotbird-3), Hotbird-6, TurksatTurksat
Turksat Satellite Communication and Cable TV Operation AS is the only satellite operator company in Turkey. It was founded as a government company...
2A (Eurasiasat-1), Amos
Amos
-First name:* Amos , one of the twelve minor prophets in the Hebrew Bible**Book of Amos, his writings* Amos, son of Nephi and his son Amos, two minor figures in the Book of Mormon...
1, Amos
Amos
-First name:* Amos , one of the twelve minor prophets in the Hebrew Bible**Book of Amos, his writings* Amos, son of Nephi and his son Amos, two minor figures in the Book of Mormon...
2, Eutelsat
Eutelsat
Eutelsat S.A. is a French-based satellite provider. Providing coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, it is one of the world's three leading satellite operators in terms of revenues.Eutelsat’s satellites...
W2, Turksat
Turksat
Turksat Satellite Communication and Cable TV Operation AS is the only satellite operator company in Turkey. It was founded as a government company...
1C, Eutelsat
Eutelsat
Eutelsat S.A. is a French-based satellite provider. Providing coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, it is one of the world's three leading satellite operators in terms of revenues.Eutelsat’s satellites...
W1, Intelsat
Intelsat
Intelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...
4 (PAS-4)
USA and Canada
DTH distribution via Galaxy 25Galaxy 25
Galaxy 25 launched in 1997, formerly known as Intelsat Americas 5 until February 15, 2007 when it was renamed as result of the merger between owner Intelsat and PanAmSat or Telstar 5) is a medium-powered communications satellite formerly in a geostationary orbit at , above a point in the Pacific...
(IA-5) and AMC-4
AMC-4 (satellite)
AMC-4 or AMERICOM-4, formerly GE-4, is a Dutch, previously American, commercial communications satellite.AMC-4 was launched in 1999 as GE-4, GE Americom's fourth A2100 hybrid C-band and Ku-band satellite. The C-band payload was home to national television networks broadcasting to thousands of cable...
.
USA, Canada and South America
IntelsatIntelsat
Intelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...
907, AB
AB
AB may refer to:-Ab, aB, and ab:*Ab , the Egyptian concept of the heart-soul*Ab , Semitic for "father"*Ab, alternate name for Anzab-e Olya, village in Iran*Rectus abdominis muscle , a paired stomach muscle...
-1 and Galaxy 23
Galaxy 23
Galaxy 23 is the name given to the C-band service of the Galaxy 23/EchoStar 9 communications satellite jointly owned by Intelsat and EchoStar located at 121° W longitude, serving the North American market. It was built by Space Systems/Loral, as part of its FS-1300 line. Galaxy 23 was...
.
Australia, Asia and Africa
ThaicomThaicom
Thaicom is the name of a series of communications satellites operated out of Thailand and the name of Thaicom Public Company Limited, which is the company that owns and operates the THAICOM satellite fleet and other telecommunication businesses in Thailand and throughout the...
-5 (Thaicom
Thaicom
Thaicom is the name of a series of communications satellites operated out of Thailand and the name of Thaicom Public Company Limited, which is the company that owns and operates the THAICOM satellite fleet and other telecommunication businesses in Thailand and throughout the...
-3), Intelsat
Intelsat
Intelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...
-10 (PAS-10), Yamal
Yamal (satellite)
Yamal is a communication satellite developed by Gazprom Space Systems for Russian Direct-To-Home television. The first satellite of the Yamal series was launched by September 6, 1999.-External links:**...
-200, Insat 2E (APR 1), Eutelsat
Eutelsat
Eutelsat S.A. is a French-based satellite provider. Providing coverage over the entire European continent, as well as the Middle East, Africa, India and significant parts of Asia and the Americas, it is one of the world's three leading satellite operators in terms of revenues.Eutelsat’s satellites...
W5.
Australia and New Zealand
DTH distribution via OptusOptus
SingTel Optus Pty Limited is the second largest telecommunications company in Australia, and is a wholly owned subsidiary of Singapore Telecommunications...
-B3 and Intelsat
Intelsat
Intelsat, Ltd. is a communications satellite services provider.Originally formed as International Telecommunications Satellite Organization , it was—from 1964 to 2001—an intergovernmental consortium owning and managing a constellation of communications satellites providing international broadcast...
8 (PAS-8), Asiasat-4