Spending on products and services in the $48 bn broadcast and media technology industry shifted dramatically between 2012 and 2014, according to the newly released Global Market Valuation and Strategy Report (GMVR), published by IABM DC LLC, a joint venture between IABM and Devoncroft Partners. The GMVR draws on actual and future projected revenue and […]
Spending on products and services in the $48 bn broadcast and media technology industry shifted dramatically between 2012 and 2014, according to the newly released Global Market Valuation and Strategy Report (GMVR), published by IABM DC LLC, a joint venture between IABM and Devoncroft Partners.
The GMVR draws on actual and future projected revenue and product shipment data supplied to IABM DC by technology vendors and service providers under a framework of strict confidentiality. In aggregate, the 2015 GMVR data model covers approximately 3,000 technology vendors and service providers.
2015 GMVR data provides clear evidence of an industry-wide change in buying strategies by media technology end-users such as content creators, broadcasters, pay TV operators, and service providers.
After experiencing a 4% CAGR (compounded annual growth rate) between 2009 and 2012, the market total for broadcast and media technology products and services slowed considerably between 2012 and 2014, achieving a CAGR of 1.3%.
Significantly, revenue from products (both hardware and software) declined by 0.5% between 2012 and 2014, while revenue from services increased by 2.9%. During 2014, services accounted for approximately $26 billion, or 54% of total spending by broadcast and media technology end-users.
The commercial models of many broadcasters and media companies have changed dramatically, said Joe Zaller, Founder and President of Devoncroft Partners.
The combination new digital and on-line delivery platforms, the shift to a file-based workflows, the increasing need for digital monetization, and the promise of commercial-off-the-shelf (COTS) IT hardware managed by software-defined networking have been catalysts for an industry-wide rethinking of both what technology is required to support future business goals, and whether it will be purchased or outsourced. We believe these factors will continue to alter the structure of the industry through the end of our forecast period (2018).
These factors, and their impact on the market are explored in more detail throughout the 2015 GMVR.
Peter White, chief executive, IABM says: Although aggregate industry growth has changed, this is undoubtedly a dynamic time for our industry. Revenue in some product categories has shown a degree of decline, however other parts of the market are growing quickly. The changing media landscape affecting the demand side of the industry is having repercussions on the supply side as well, requiring a re-thinking of many business models. During this period of metamorphosis there has been a slowdown of investment by end users as they seek a clearer vision of the business model and product roadmap going forward. Despite this hiatus confidence remains high in the broadcast and digital media technology market, particularly with the emergence of the many new innovations and opportunities that we anticipate will have a positive impact on growth.
