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RRsat sees video distribution market shifting to outsourcing


By Ari Rabinovitch ELLA VALLEY, Israel (Reuters) – New technologies in digital media services and an industry shift towards outsourcing will bring strong growth opportunities in the coming years, said Avi Cohen, chief executive of Israel’s RRsat Global Communications Network. Video distribution is a $9.4 billion market, Cohen said, and broadcasters and studios are increasingly handing the work over to external service providers, like RRsat. “We are getting requests from all of the big companies, allowing us to broaden our services, and this is a global trend.” RRsat, which distributes 630 channels worldwide and handles all distribution of the National Football League outside the United States, reported record revenue of $32.9 million for the first quarter, up 12.3 percent from 2013. According to Cohen, the company’s main competitors in the global market – UK-based Arqiva, Orange subsidiary Globecast and U.S.-based Encompass – are all larger, but have been less conservative in growing and are highly leveraged.

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