Broadcast and Media Technology Market – Global Trends · generally translating into . lower budgets . for media technology • Media technology investment is shifting. as risk preferences

Broadcast and Media Technology Market – Global Trends

Peter White, CEO, IABM

IABM Copyright 2019@THEIABM www.theiabm.org

Agenda

Business Environment –Drivers of Change

Global Buying Trends –Impact of Coronavirus

Global Supply Trends –Impact of Coronavirus


Business Environment – Drivers of Change

Sources: IABM

#1 Move to Direct-to-Consumer PlatformsThe industry is irreversibly moving to direct-to-consumer platforms, prompting buyers to focus their investment on their development

#2 Move to Technologies Enabling Business AgilityDirect-to-consumer requires agility, prompting buyers to adopt new technologies and business models to streamline their content chains

#3 Move to Collaborative Technology ModelsNew market dynamics and technologies require different engagement models, prompting buyers to increase collaboration between themselves and with their suppliers

Key Buying Trends

Busin

ess

Tech

nolo

gyRe

latio

nshi

ps

Changes in Technology Development R&D Funding and Focus More Collaborative Tech Development Smaller Software Updates, but More Often

Shifts in Supply Trends

Move to SaaS Shift in Revenues Financial Implications Sales & Profits

Customer Engagement and Partnerships Customer Engagement Partnerships Between Suppliers & Cloud Adoption Partnering and Co-Development with Buyers


0

5

10

15

20

25

30

2019 2020

Move to Direct-to-Consumer PlatformsContent bubble

Sources: IABM, FT, Variety

Content Spending Continues: Investment in Original Content - Estimated

0

200

400

600

800

1000

1200

2018 2019 2024

Mill

ion

(Sub

s)

Global Subs: SVOD vs. Pay-TV

SVOD Pay-TV

Note: Coronavirus

increasing the demand for

SVOD services due to lockdown

measures

Note: Cancellation of

productions due to Coronavirus

putting pressure on

production/post


Move to Direct-to-Consumer PlatformsScaling up through M&A

Sources: IABM

Technology InvestmentNot just content spending, significant technology investment needed to

compete with global advertising and streaming platforms

Major Media Deals: A way to search for scale

(Fox Regional Sports Network)2019

Note: Media technology

investment is shifting as risk preferences of buyers

change dramatically due to Coronavirus


Move to Agile Technologies and Collaborative Business ModelsAlliances and Technology Investments

Streaming

Advertising Advertising Technology Investment

Streaming Technology Investment

Note: Rise of live news

consumption due to Coronavirus leading to higher

demand for collaborative news solutions as well as

new workflows


Buyers’ Confidence and Revenues – Impact of CoronavirusBuyers Under Immense Pressure

Sources: IABM, Coronavirus Impact Tracker

14%

28%

58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Revenues will increase Revenue will stay thesame

Revenues will decrease

Revenue Outlook – Buyers (after COVID-19 Outbreak)

Revenues will increase Revenue will stay the same


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012IBC

2013NAB

2013IBC

2014NAB

2014IBC

2015NAB

2015IBC

2016NAB

2016IBC

2017NAB

2017IBC

2018NAB

2018IBC

2019NAB

2019IBC

Confidence among Buyers (before COVID-19)

Very Positive Quite Positive Neutral Quite Negative Very Negative

Note: Coronavirus causing overall pressure on

advertising and subscription revenue generally translating

into lower budgets for media technology


Sources: IABM

Buyers’ Investment Outlook – Impact of CoronavirusShift to DTC and Flexible Payments Models

Buyers’ Investment Outlook (before COVID-19)Shifting Spending – SaaS is Coming

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Software permanent licences

Hardware products

Services

Software on-demand

Software subscriptions

Growing Stable Declining

Note: Media technology investment is

shifting as risk preferences of buyers change dramatically,

investment is shifting away from hardware and legacy towards

cloud-based offerings that enable remote solutions. This

may have a lasting impact and be an acceleration of established

technology transitions


Buyers Seeking Digital Speed – Impact of CoronavirusNeed for Digital Speed & New Skillsets

Sources: IABM

Staff Cuts Happening Faster:

Technology Playing a Role (Again)Adoption of cloud and AI/ML leading to increased

automation

Skillsets Are ChangingIncreased focus on IT technology and data

Radically ChangingAt the end of August 2019, Disney had more job openings

mentioning the word “Data” than posts mentioning “Engineering”

Disney Canal Plus Al Jazeera The BBC DR BeIN Sports

Radio France Vice Media RTE SBC TVB Verizon Media

CNN NBCUniversal STV CBC

Estimated Staff Cuts at Major Broadcasters in Recent Years:

Note: Coronavirus

translating into lower budgets, likely leading

to further staff cuts globally


Suppliers Adapting to SaaS Models – Impact of CoronavirusSuppliers Under Immense Pressure


10%

19%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Revenues will increase Revenue will stay thesame


Revenue Outlook – Suppliers(after COVID-19)

Revenues will increase Revenue will stay the same Revenues will decrease0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Media Technology Cash Flow over Revenue Index (before COVID-19)

The cashflow/revenue index at tech suppliers started decreasing in 2012 after the end of the transition to HD

Now the rate declining at a slower rate

Note: Investment is shifting away from hardware and legacy

towards cloud-based offerings that enable remote solutions. This shift may also

accelerate suppliers’ transition to as-a-service

offerings and exacerbate the industry’s cashflow crunch


Customer Engagement

Sources: IABM

Customer EngagementAs the buying frequency changes from multi-year commitments to monthly or metered payments, engagement with buyers becomes continuous to

maximize customer retention – the key to financial success in SaaS models

In SaaS models, suppliers need different engagement tools such as webinars, virtual support as well as their own events!

Note: Financial pressure on buyers

prompting suppliers to roll out as-a-service selling tools (e.g.

free trials, unlimited users) that also aim to incentivize

adoption. Cancellation of trade shows also forcing suppliers to find new means of customer

engagement with buyers


• Overall pressure on advertising and subscription revenue generally translating into lower budgets for media technology

• Media technology investment is shifting as risk preferences of buyers change dramatically, investment is shifting away from hardware and legacy towards cloud-based offerings that enable remote solutions. This may have a lasting impact and be an acceleration of established technology transitions

• Shift may also accelerate suppliers’ transition to as-a-service offerings and exacerbate the industry’s cashflow crunch

• Financial pressure on buyers prompting suppliers to roll out as-a-service selling tools (e.g. free trials, unlimited users) that also aim to incentivize adoption. Cancellation of trade shows also forcing suppliers to find new means of customer engagement with buyers

• Cancellation of live events putting pressure on sports industry, a major source of advertising revenue in a quadrennial year, and other live industries. Shift towards solutions that leverage existing content and boost fan engagement

• Cancellation of productions putting pressure on production/post and may spur creative innovation (i.e. new programming formats). Rise of live news consumption leading to higher demand for collaborative news solutions as well as new workflows (i.e. use of consumer video technology in news)

• Surge of on-demand streaming consumption due to lockdown measures leading to pressure on connectivity resources – Netflix and others cutting streaming quality. Good for solutions that make this efficient like compression

Major Effects of Coronavirus - SummaryGoing Virtual


Thank you!

Documents

Broadcast and Media Technology Market – Global Trends · generally translating into . lower budgets . for media technology • Media technology investment is shifting. as risk preferences