Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Amir Rozwadowski - Barclays.
Amir Rozwadowski - Barclays Capital
If we look at sort of the spending environment by end market and certainly it seems that you had some strength on the domestic cable market. I was wondering if you could talk a little bit about what you are seeing in terms of the DBS or satellite markets and sort of any outlooks you see in terms of spending from that perspective.
Patrick Harshman
Yes. As you pointed out and as we said, the domestic cable markets seem to rise above all other markets and among the other markets including the DBS market. There are no really appreciable differences. As Robin noticed in his comments, year-over-year our satellite revenue is about 18% of total, which is almost than what it was for the entirety of 2008. So, as a percentage of our overall business as a ratio, satellite is consistent.
We are encouraged by the response toward getting from satellite customers, not domestically and internationally in response to the newest products particularly the Electra 8000 that I spoke and we see good opportunities around supporting the addition of new channels, as well as I mentioned the upgrading of some previously deployed channels both MPEG-2 and MPEG-4, high definition as well as standard definition.
Robin Dickson
I was wanted to pointed out that as we have been saying over the past couple of quarters, while encoding I think is the main thrust of our historical business and probably for sometime going forward with satellite customers. We increasingly excited about and we see increasing activity around the first defying business models and deliver means coming from satellite operators specifically some of the internet and mobile activity that I spoke. We are seeing satellite operators around the world really leveraging their content relationships, their customer relationships to explore and in some cases begin to invest in these alternative video deliver mechanisms and we are really excited about that as a fundamental long term incremental driver of our satellite business.
Amir Rozwadowski - Barclays Capital
Should the way we think about it is, is sort of as the Electra 8000 being the acceptance in the marketplace that is where we could see some further stabilization and then in the satellite business from a product upgrade cycle?
Patrick Harshman
Yes. I mean I do not want to suggest that we think it is not stable. As I said earlier, the revenue is actually had hanged in there quite well. That being said, if you look over the history of Harmonic working to satellite operators, I am talking with the last 8 to 10 years. Actually, the lion share of the business is actually being around upgrading and replacing existing previous generation in quarters and looking forward we see great cycles, great opportunities to do that. The first high definition, MPEG-4 encoders were now in the field of upwards of three years. There is tremendous savings opportunities now associated with upgrading those encoders and the same kind of opportunities it goes around standard definition channels.
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