Radical industry shift continues to drive changes in business models and purchasing priorities
IABM has just released its latest Buying Trends Report. The Report is built on analysis of qualitative evidence gathered from broadcast and media companies immediately prior to IBC2019 together with quantitative data drawn from their latest financial filings. IABM members can review the full report here.
The Report’s findings reflect the ongoing radical shift in the demand side of the industry: revenue growth decreased by over six percentage points and profit growth remained negative. Despite this squeeze on financial performance – due to the continued pressure on traditional advertising and subscription business models – broadcast and media companies remain relatively confident that they can successfully counter increased competition. As with the April 2019 edition of the Report, efficiency remains the key driver in all technology purchasing decisions.
The headline findings of the October 2019 Buying Trends Report are:
- Revenue growth decreases from 9.3% in April 2019 to 3.1%, and profit growth remains negative at -3.1% – slightly down from -2.4% reported in April
- Confidence nonetheless remains high with 74% of respondents saying that they are positive about the business environment, down by four percentage points compared to six months ago
- 21% of technology users derive the vast majority of their revenue (more than 80%) from traditional broadcast operations although most expect this to change
- Efficiency remains the most important driver of product purchase, followed by total cost of ownership and agility
- Multi-platform content delivery is the most important priority for technology users followed by 4K/UHD
- Investment in building internal capabilities for technology development continues to increase
- Cloud, UHD, and AI rise while Blockchain is still at an early stage of adoption at 2%
- 92% of end-users say that interoperability is important
“Changing priorities have translated into a shift in technology spending that prioritizes Opex over Capex,” said Lorenzo Zanni, IABM Head of Insight & Analysis. “Our data demonstrates that technology users are focusing on solutions that make them more efficient and agile. In order to do that, they are spending more money on generic IT technology and increasingly investing in in-house development to suit their specific needs. This shift in technology spending is prompting end-users to adopt a variety of emerging technologies to streamline their supply-chains for the multi-platform world. Given that confidence levels remain relatively high, it is clear they are optimistic that they can meet the challenge from the digital giants head on.”
IABM (www.theiabm.org) is the international trade association for suppliers of broadcast and media technology. IABM facilitates the important networking and interaction between suppliers that shape and define the unique ecosystem of the broadcast and media technology industry.
IABM supports member companies with a comprehensive range of services across market intelligence, training, technology, exhibitions and best practices – all designed to help them do better business. We hold the interests of member companies as paramount, and strive to provide strong guidance and support at every level in all geographies.
We understand that in today’s rapidly changing media landscape, our members have never had a greater need for timely, relevant and effective advice and support. IABM’s mission is to be an ever more powerful beacon that is highly responsive to all our members’ needs in a timely fashion, helping them to prosper and navigate change successfully