IABM Market Intelligence Blog - Pre-IBC End User Survey Digest

IABM Market Intelligence Blog - Pre-IBC End User Survey Digest 25 November 2015

2015 Pre-IBC End-User Survey Digest

By Lorenzo Zanni, IABM Research Analyst

The 2015 Pre-IBC End-User survey has recently been published and it is available on the IABM website for member companies. The survey examines the customer side of the industry, in particular, their views on the effects of the economy, the IT industry entering the broadcast sector and how these factors should inform their purchasing plans going forward. As opposed to the pre-NAB survey, the majority of respondents is from Europe as a result of the prevalence of European end-users at the IBC show. Alternative broadcast buyers such as post-production houses and system integrators are also part of the sample.

The results of this survey are an additional confirmation that the shift impacting broadcast technology purchasing strategy is underway. The ultimate origins of this shift are the changing viewing habits which have forced broadcasters to move to a multi-platform delivery model. This is accompanied by the increasing importance given to IT technology, which is cheaper than bespoke broadcast equipment and has reached a level of sophistication suitable to broadcast operations. Below, an indexed chart representing the top priorities in purchasing broadcast technology is presented. The chart is also informative of how cloud computing technologies are gaining traction in the broadcast industry. This is consistent with the need for increased operational efficiency as the cloud allows for consumption-based expenditures.

The transition to IT technology and new media activities is witnessed by other results of the survey. Broadcasters are allocating an increasing portion of their CapEx budget to traditional IT equipment, rather than traditional broadcast equipment, aiming to upgrade their infrastructure to more agile and interoperable systems. However, best of breed solutions from multiple suppliers are still preferred by the majority of respondents highlighting a stable demand for superior products.

As far as people are concerned, IT staff is becoming increasingly important in decision-making to the detriment of engineers that though have not given up their leadership. The culture clash between engineering and IT staff is still a problem in some broadcast studios. This clash should be tackled by a more structured and comprehensive training to equip new recruits with both broadcast and IT skills. This topic has been long discussed at the last IBC show and represents the focus of a previous Market Intelligence blog. In this light, recruitment is also a major issue with the majority of respondents reporting the struggle to find the engineers they need.

Business sentiment in the broadcast industry has been stable over the last two years and is predicted to be the same over the next two-three. An increasing percentage of end-users state that the recession is over with projects delayed during the recession now urgent or back on the table. However, economic conditions in Europe remain challenging as many countries have not yet recovered from the financial crisis. This explains why a relevant portion of respondents do not think that the recession is over. For some broadcasters, the difficulties in obtaining credit for new projects have represented a hurdle to growth. For others, the challenging macroeconomic climate has translated into an alternative, post-recession purchasing strategy focused on efficiency. If the search for efficiency is the consequence of macroeconomic challenges as well as a changing media landscape discussed earlier, IT technology is believed to be the means to achieve it.

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