Devoncroft Releases Index Tracking IP Adoption in Media Industry

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research, OTT Video, technology trends | Posted by Josh Stinehour
Nov 29 2017

Along with an index tracking Cloud Adoption, Devoncroft is also publishing the first installment of an index tracking IP-Based Infrastructure Adoption in the global broadcast and media industry.   You may download a complimentary copy by clicking the below link.

The index is intended as a public reference on the media industry’s historical, current, and forecasted adoption of IP-based technology infrastructure for media operations.

 

Click Here to Download
(Registration Required)

 

 

 

 

Using a similar methodology as Devoncroft’s Cloud Adoption Index, the IP Adoption Index combines a decade of Devoncroft research on technology adoption in the media sector with annual Big Broadcast Survey data to arrive a simple, single value representing both current and anticipated adoption of IP-based technology infrastructure.

We will publish updates to this index at regular intervals based on the ongoing research activities of Devoncroft.

How to Interpret the Index
We have chosen an index to keep the presentation simple and well-understood.  Please note the calculated index values do not have standalone meaning.  Rather, given the construction of the index, the percentage change in the index is a proxy for the percentage change and anticipated percentage change in the adoption profile of IP-based technology infrastructure.

Feedback, Comments 
This index was only possible after consultation with many industry stakeholders on how best to combine and visualize the underlying data.  Thank you to all our supporters who made this index possible.

We plan to continue to improve this regular index based on feedback from the global media technology community.

If you would like to share any comments or suggestions for the index or if you would like to become a direct supporter of the index, please contact us.

Upcoming Index Expansion
A more detailed version of the index will publish later this month providing greater detail on the individual research components constituting the IP Adoption Index.

 

 

Related Content:

Devoncroft M&E Cloud Adoption Index

 

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

 

 

Introducing the Devoncroft M&E Cloud Adoption Index

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research, OTT Video | Posted by Josh Stinehour
Nov 29 2017

Devoncroft is today publishing the first installment of an index tracking Cloud Adoption in the global broadcast and media industry.   You may download a complimentary copy by clicking the below link.

The index is intended as a public reference on the media industry’s historical, current, and forecasted adoption of cloud-based technologies (both private and public) for media operations.

 

Click Here to Download
(Registration Required)

 

 

 

 

It combines a decade of Devoncroft research on technology adoption in the media sector with Big Broadcast Survey data to arrive a simple, single value representing both current and anticipated adoption of cloud technologies.

We will publish updates to this index at regular intervals based on the ongoing research activities of Devoncroft.

How to Interpret the Index
We have chosen an index to keep the presentation simple and well-understood.  Please note the calculated index values do not have standalone meaning.  Rather, given the construction of the index, the percentage change in the index is a proxy for the percentage change and anticipated percentage change in the adoption profile of cloud-based technologies.

Feedback, Comments 
This index was only possible after consultation with many industry stakeholders on how best to combine and visualize the underlying data.  Thank you to all our supporters who made this index possible.

We plan to continue to improve this regular index based on feedback from the global media technology community.

If you would like to share any comments or suggestions for the index or if you would like to become a direct supporter of the index, please contact us.

Upcoming Index Expansion
A more detailed version of the index will publish later this month providing greater detail on the individual research components constituting the Cloud Adoption Index.

 

 

Related Content:

 

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

 

2017 Big Broadcast Survey Executive Summary Now Available

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Josh Stinehour
Nov 27 2017

Each year several thousand global media professionals take part in Devoncroft’s Big Broadcast Survey, making it the largest and most comprehensive market study conducted in the broadcast and media industry.

As a thank you to all professionals who participate in the BBS each year, we provide a complimentary summary of the results.

Included in the nearly 100 page executive summary are high-level findings from survey respondents that provide insight into the following,

  • Technology and business-oriented trends in the broadcast and media industry
  • Budgeted projects and buying habits of media technology buyers such as broadcasters, cable/satellite/IPTV operators, playout centers, post-production facilities, OTT/Digital distributors, radio stations, recording studios, and system integrators
  • Perceptions of leading media technology vendor brands (116 technology vendors were covered in the 2017 BBS) by a global audience of technology purchasers
  • Technology vendor brand ranking in a variety of product categories (30 product categories were covered in the 2017 BBS)

If you participated in the BBS this year and haven’t already received your copy, please let us know.

For all other parties interested in a summary of the reports, we are making the Executive Summary available for purchase.  Click here to visit the online store.  You may purchase for immediate electronic download.

If you are interested in an evaluation of individual 2017 BBS reports available on over 100 media technology suppliers and 30 product categories, please contact us.

 

 

Related Content:

The 2017 BBS Broadcast Industry Global Trend Index

 

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

 

Ranking the Most Commercially Important Trends in Broadcast and Media Technology – 2017 Edition

Analysis, broadcast technology market research, market research, technology trends | Posted by Josh Stinehour
Sep 14 2017

This is the first in a series of articles about findings from Devoncroft’s 2017 Big Broadcast Survey (BBS), an annual global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Several thousand broadcast professionals in 100+ countries took part in the 2017 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

 

Measuring the Most Important Trends in the Broadcast and Digital Media Technology Industry

We would like to start by again thanking all the professionals who participate in the BBS each year.  We recognize it is a lengthy and detailed survey, so are especially thankful that you take time from your busy schedules to participate, and we love (and read all of) your feedback.

One of the key outputs from the BBS is the annual BBS Broadcast Industry Global Trend Index. This is a ranking of the broadcast industry trends that are considered by BBS respondents the most commercially important to their businesses in any given year.

In order to ensure the relevance of the trends we measure each year, we spend a considerable amount of time seeking feedback about the structure of our reports from a wide variety of industry professionals.

As part of this process, the composition of the BBS Broadcast Industry Global Trend Index is reviewed each year in conjunction with Devoncroft clients, broadcast technology end-users, and a variety of domain experts.  New trends are added to the Index when BBS stakeholders believe that the value of this additional trend information outweighs the resulting distortion of the year-over-year comparisons.

A deliberately conservative strategy is used when considering adjustments to the index.  By keeping changes to a minimum, we allow for a more straightforward comparison of how trends were ranked versus previous iterations of the survey.

Based on discussions with clients, end-users, and experts during the planning stages of the 2017 BBS project, we decided to add both “High Dynamic Range (HDR)” and “Next generation broadcasting (ATSC 3.0, DVB T-2 etc)”, and remove “Remove Reduction in carbon emissions / other green initiatives.”

 

The 2017 BBS Broadcast Industry Global Trend Index

To create the 2017 BBS Broadcast Industry Global Trend Index, we presented BBS respondents with a list of 19 industry trends and asked them to identify the one trend they consider to be “most important” to their business, the one trend they consider to be “second most important” to their business, and the other trends (plural) they consider to be “also very important.”

We then apply a statistical weighting to these results, based on how research participants ranked the commercial importance of each trend.

Please note that our goal from this question is to help clients gain insight into the business drivers behind the respondent’s answer.  Therefore, respondents were asked to rank these trends in the context of the commercial importance to their business, rather than “industry buzz,” or “cool technology,” or marketing hype. The 2017 BBS Broadcast Industry Global Trend Index is shown below.

When reviewing the data presented above, readers should note the following about the 2017 BBS Broadcast Industry Global Trend Index:

  • It is a measure of what research participants say is commercially important to their businesses in the future, not what they are doing now, or where they are spending money today (these topics will be addressed in future posts)
  • The chart above is visualized as a weighted index, not as a measure of the number of people that said which trend was most important to them
  • It measures the responses of all technology purchasers (i.e. non-vendors) who participated in the 2017 BBS, regardless of company type, company size, geographic location, job title, etc. Thus the responses of any demographic group such as a particular company type or geographic location may vary widely from the results presented in this article.

 

Analyzing the 2017 BBS Broadcast Industry Global Trend Index

Multi-platform content delivery (MPCD) is cited by a wide margin as the most important trend commercially to respondent businesses.  This is not surprising given the continued rise of new distribution mediums and devices.  Indeed, research participants have repeatedly stated multi-platform content delivery is the most commercially important trend to their business since the 2010 edition of the BBS.

However, our discussions with broadcasters, content owners, and technology vendors indicate that despite the obvious fact that the way content is delivered and consumed has changed forever, this is only now beginning to translate into profitable revenue streams for end-users.  There are a number of reasons why this is the case, and these have significant implications for content owners, broadcasters, and technology vendors.

There are quite a few other interesting things to consider in the BBS Broadcast Industry Global Trend Index.

For over the past decade and a half the transition to HDTV operations has been a major driver of end-user technology budgets, and therefore technology product sales.  The first BBS Broadcast Industry Global Trend Index, published in 2009, ranked the transition to HD as the #1 trend globally.  In the almost decade since, the transition to HD operations has drifted lower in the rankings based on the continued adoption of HD technology infrastructure globally.  For the first time in 2014, the transition to HD operations was not ranked among the top five trends by respondents, instead ranking #6.  In 2017, the transition to HD operations declined further, now ranking #15.

A trend also showing maturity in the 2017 BBS Broadcast Industry Global Trend Index is “file-based / tapeless workflows.”  While the trend ranked #4 in the 2016 BBS Broadcast Industry Global Trend index, it declined to #11 in the 2017 index.

Over the past decade, we’ve observed a pattern whereby broadcasters, who have invested considerable time, effort, and money into transitioning their operations to HD, next shifted their focus towards increasing the efficiency of their operations. As a result, efficiency became a key driver of broadcast technology purchasing.  The results of the 2017 index suggests file-based workflow penetration has passed a milestone of maturity.  Greater detail is available on the state of file-based workflow penetration in the 2017 BBS Market Report.

A trend that has increased in importance over the past several years is “IP networking & content delivery,” which is ranked as the #2 most important trend in the BBS Broadcast Industry Global Trend Index.

The move to IP-based infrastructure has increased in importance in response to several market developments.  Based on our research, end-user motivations for moving to IP-based infrastructure are more nuanced than simply generating operational efficiencies, though this goal is an important component.  Rather, end-user responses to the Big Broadcast Survey are consistent with a more encompassing goal of moving to fundamentally different technology infrastructures to better support evolving media business models.

While the move to IP-based infrastructure is still at the stage of early adopters in broadcast operational environments, there were several notable developments during 2017, which are reflected in the research gathered in the 2017 BBS Reports.

The #3 ranked trend in the 2017 BBS Broadcast Industry Global Trend Index is “4K / UHD.”  Many in the industry believe 4K / UHD is the next major driver of infrastructure upgrades – similar to the transition to HD over a decade ago.

We provide significant coverage of the transition of global broadcast infrastructure in the 2017 BBS Global Market Report (available for purchase). This includes a breakdown of the current and projected future infrastructure installment across analog, standard definition, high definition, 3Gbps operations, and 4K / UHD.

“Cloud computing / virtualization,” is the #4 ranked trend in 2017.  It is not surprising “Cloud computing / virtualization” is a highly rated given the broader excitement in the technology sector for leveraging cloud infrastructure.

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?   Perhaps more than any other topic, the industry’s plans for cloud have evolved considerably over the past several years.

There is a substantial amount of additional data captured in the 2017 BBS on what technology segments end-users are deploying and planning to deploy cloud services, along with what efficiencies they hope to achieve by deploying cloud Services.  This data is presented in the 2017 BBS Global Market Report (available for purchase).

“Improvements in compression efficiency,” which is ranked #5 in the 2017 BBS Broadcast Industry Global Trend Index is consistent with the desire for increased efficiency. With content distribution models having migrated from single linear broadcast channels, to multi-channel Pay TV playout, to a totally on-demand environment, high quality compression is a critical success factor for broadcasters and content playout platforms.

A plethora of new channels, and the desire for simultaneous bandwidth saving and increased image quality for MPCD services have driven an increasing focus on high quality compression systems. For the past several years this has resulted in better MPEG-2 and H.264 compression products for primary distribution, contribution, and redistribution to consumers. H.265 (HEVC) compression technology holds the promise of further reducing the bandwidth required to deliver high quality images, particularly for 4K / UHD channels.

 

The information in this article is based on select findings from the 2017 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Several thousand broadcast professionals in 100+ countries took part in the 2017 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Granular analysis of these results is available as part of various paid-for reports based on the 2017 BBS data set. For more information about this report, please contact Devoncroft Partners

 

 

Related Content:

The 2015 BBS Broadcast Industry Global Trend Index

The 2014 BBS Broadcast Industry Global Trend Index

The 2013 BBS Broadcast Industry Global Trend Index

The 2012 BBS Broadcast Industry Global Trend Index

The 2011 BBS Broadcast Industry Global Trend Index

The 2010 BBS Broadcast Industry Global Trend Index

The 2009 BBS Broadcast Industry Global Trend Index

 

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

Harmonic Q2 2017 Revenue Declines 25% as Industry-Wide Structural Shift to Cloud, Software, and SaaS Accelerates

Analysis, broadcast industry technology trends, broadcast technology market research, Broadcast technology vendor financials, OTT Video, Quarterly Results | Posted by Joe Zaller
Aug 02 2017

Harmonic announced that its revenue for the second quarter of 2017 was $82.9 million, down 24.9% compared to the previous year, and down 0.8% versus the previous quarter.

Bookings for the second quarter of 2017 were $91.1 million, down 22.3% compared to last year, and up 11.0% compared to the previous quarter.

The company attributed its revenue decline to a slowdown in spending, resulting from a strategic shift in spending at broadcasters and media companies, who the company says are increasingly prioritizing OTT and direct-to-consumer offerings over traditional linear platform deployments.

“Over-the-top software, cloud solutions and related subscription business models are becoming more significant drivers of our Video business,” Harmonic CEO Patrick Harshman told investors during the company’s Q2 2017 earnings call. “While subscription video-on-demand over-the-top platform growth is not news, the drive of traditional media companies and service providers to new unified live over-the-top services targeted at both mobile devices and the big screen in the living room is accelerating faster than we anticipated.”

On a GAAP basis, the Harmonic’s net loss for Q2 2017 was $31.5 million, or $(0.39) per diluted share in Q2 2017. This compares to a GAAP net loss of $20.7 million, or $(0.27) per diluted share last year, and a GAAP net loss of $24 million, or $(0.30) per diluted share last quarter.

In light of Harmonic’s declining revenues and ongoing losses, the company indicated it planned to reign-in costs during the second half of 2017.  Newly-appointed CFO Sanjay Kalra told analysts: “recognizing these accelerating marketplace changes, we have initiated a realignment of our investments, spending and infrastructure to optimally align with customer demand and opportunity… Our combined second half [2017] operating expenses will be $11 million to $15 million below first half operating expenses.”

GAAP gross margins were 41.1% for the quarter, compared to 43.1% last year, and 48.8% last quarter. The company attributed the decline to lower than expected revenue in the quarter.

Non-GAAP gross margins were 47.9%, compared to 53% last year, and 52.1% last quarter. Non-GAAP video product gross margin was 51.4%, compared to 56.1% last year, and 54.9% last quarter. Non-GAAP cable edge gross margin was 19% during Q2 2017, compared to 38.3% last year, and 29.1% last quarter.

Research and development expense was $27 million for the quarter, compared to $26.5 million last year, and $26.5 million last quarter. Expressed as a percentage of total revenue, R&D expense represented 32.9% of sales in the quarter, compared to 24.3% last year.

SG&A expense was $32.6 million for the quarter, compared to $36.5 million last year, and $36.5 million last quarter. Expressed as a percentage of total revenue, SG&A expense represented 39.6% of sales in the quarter, compared to 33.5% last year.

 

Geographic Revenues

Revenue in the Americas region was $40.6 million during Q2 2017, a decrease of 29.6% versus the prior year, and an increase of 7.1% versus the previous quarter. The Americas accounted for 49.3% of total Q2 2017 revenue, down from 53.1% last year, and up from 45.7% last quarter.

Discussing the company’s sharp revenue decline in the Americas, Harshman indicated the industry has reached an inflection point in ongoing structural shift from linear platforms to OTT and direct-to-consumer offerings: “Particularly in the U.S. the strategic emphasis on high-quality over-the-top services is impacting the pace of investment in more traditional broadcast and pay -TV systems… What we’re seeing now is a pullback on investments in those traditional platforms and a real strategic mandate to an all-hands-on-deck on the over-the-top, the streaming strategy. It’s not just down to a delayed decision around specific technology, but it’s more, I think, a derivative of a broader strategic shift that we’re seeing playing out…. There’s a lot happening in the media and pay -TV landscape in the U.S., so there’s a lot of thinking going on, there’s a lot of planning, not the least of which is related to the underlying technology platforms. But there’s a lot that our customers are grappling with and trying to figure out.”

EMEA revenue in Q2 2017 was $24.95 million, down 25.3% versus the prior year, and down 1.9% versus the previous quarter. The EMEA region accounted for 30.3% of total Q2 2017 revenue, compared to 30.7% last year and 30.7% last quarter.

APAC revenue in Q2 2017 was $16.75 million, down 14.5% versus the prior year, and down 4.8% versus the previous quarter. The APAC region accounted for 20.3% of total Q2 2017 revenue, compared to 16.2% last year and 23.6% last quarter.

 

Product Revenues

Video products revenue for the quarter was $44.8 million, down 27.9% versus the previous year, and down 1.5% versus the previous quarter. As a percent of total sales, video products represented 54.5% of revenue in Q2 2017, compared to 56.8% in year-earlier period, and 54.9% in the previous quarter.

Similar to other firms that have embarked on the shift from hardware/CapEx revenues to software/SaaS revenues, company CFO Karla explained: “when a traditional CapEx booking comes in, we typically recognize the vast majority of that booking as revenue immediately or within a quarter or two. But if that booking comes in as a SaaS order, revenue is instead recognized ratably over time, resulting in much less current period revenue, but an expanded backlog. So to be clear, as our Video segment mix shift to SaaS, we expect a near-term revenue and operating profit headwind, offset by a growing backlog that over time will provide greater revenue visibility.”

Harshman took an optimistic tone when asked about the company’s shift to software and SaaS.  “While software-as-a-service is still a relatively small component of this overall over-the-top business, the adoption of our SaaS solutions in the second quarter was greater than expected,” he said. “Cloud and SaaS total contract value grew 90% sequentially to a little over $7.5 million, while our annual recurring revenue grew 87% to nearly $6 million. Had these subscription bookings been traditional CapEx orders recognizes revenue immediately, second quarter Video revenue would have grown year-over-year. I will be surprised if [SaaS isn’t 20% of our video revenue] within a year…. I mean I hesitate a little bit, but only because just a quarter ago, we were sitting here relatively pleased candidly that we were at 5% and to see it surge to 8% in the second quarter was certainly a surprise to us.”

Cable Edge revenue was $5.36 million during the quarter, a decline of 66% versus the previous year, and an increase of 9.8% versus the previous quarter. Cable Edge represented 6.5% of revenue in Q2 2017, a decrease versus the 14.4% contribution in the previous year, and an increase versus the 5.9% in the previous quarter.

Harmonic’s Cable Edge business has been in decline for more than a year due to the transition by cable TV operators from legacy EdgeQAM products, to a new generation of products based on C-CAP (Converged Cable Access Platform) technology.

Once again, Harshman was optimistic when describing the outlook for Cable Edge products.  “The real news here is that we continue to make material progress advancing our CableOS technology leadership and new business pipeline,” he said. “Our confidence is further bolstered by recent advanced purchase orders. Since our May conference call and through July, we received over $15 million of new CableOS orders, bringing our CableOS backlog to approximately $20 million. Relative to our initial expectations, we are seeing a higher percentage of this demand being associated with new distributed access architectures, which make sense given the growing industry focus.”

Services and support revenue were $32.1 million in Q2 2017, an increase of 4.0% versus the previous year, and a decline of 9.8% versus the previous quarter.  As a percentage of overall revenue, service and support accounted for 39.0% in Q2 2017, versus 28.8% last year, and 39.2% last quarter.

 

Segment Revenues

Broadcast and Media sales were $35.85 million, down 18.1% versus last year, and up 2.8% versus the previous quarter. In aggregate, Broadcast and Media accounted for 43.6% of total revenue, compared to 40.3% last year, and 42.1% last quarter.

Service Provider revenues were $46.42 million, down 29.4% versus last year, and down 3.3% versus the previous quarter. In aggregate, Service Providers accounted for 56.4% of total revenue, compared to 60.5% last year, and 57.9% last quarter.

 

Business Outlook

The company provided the following guidance for Q3 and Q4 2017.

For the third-quarter of 2017, the company expects revenue to be within the range of $80 – $90 million, comprised of Video revenue in the range of $72 ­- $81 million; and Cable Edge revenue in the range of $8 – $9 million. Q3 non-GAAP gross margins are expected to be in the range of 51% to 52%, with Video gross margin of 55% to 56% and Cable Edge gross margins of 20% to 21%. Q3 2017 non-GAAP operating expenses are expected to be in a range of $48 million to $50 million. Q3 2017 non-GAAP operating losses are expected to be in the range of $9 million to $1 million, and non-GAAP EPS is expected to be in the range of $0.11 to $0.03 The company expects cash and short-term investments at the end of Q3 to be between $40 million and $50 million.

For the fourth-quarter of 2017, the company expects non-GAAP revenue to be within the range of $90 – $100 million, which includes Video revenue of $80 – $86 million and Cable Edge revenue of $10 – $14 million.  Q4 2017 non-GAAP gross margins are expected to be 52% to 53.5% with Video gross margins of 55% to 57% and Cable Edge gross margins of 27% to 29%. Q4 2017 non-GAAP operating expenses are expected to be in a from $48 million to $50 million. Q4 2017 non-GAAP operating profit is expected to be in the range of a loss of $3.3 million to profit of $5.5 million. Q4 non-GAAP EPS is expected to be in the range of $0.05 loss to $0.04 profit. The company expects cash and short-term investments at the end of Q4 to be between $40 million and $50 million.

Harmonic exited the quarter with total backlog and deferred revenue of $194.4 million, a record for the company.  The company ended the quarter with $52.9 million in cash, down from $56 million last quarter. Employee count at the end of Q2 2017 was 1,338 compared to 1,403 last year, and 1,358 at the end of Q1 2017.

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Related Content:

Press Release: Harmonic Announces Second Quarter 2017 Results

Previous Year: Harmonic Exceeds Revenue Guidance for Q2 2017, Anticipates Double-Digit Operating Margins by Q4

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© Devoncroft Partners 2009 – 2017. All Rights Reserved.

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Devoncroft 180-Page Media Technology Industry Analysis Now Available

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Online Video, OTT Video, technology trends | Posted by Josh Stinehour
May 26 2017

Last month, more than 1,000 NAB Show attendees packed the largest room at the Las Vegas Convention Center for the Devoncroft Partners Media Technology Business Summit, to hear industry thought leaders discuss market trends and technology deployment strategies.

We have now published our analysis of the market in a 180-page report.  The report is available for purchase from our online store.  Alternatively, if you are a buyer, user, or supplier of media technology products or services, then we will send you a complimentary copy of report in exchange for taking our annual Big Broadcast Survey on industry trends.

The report is the culmination of several months of research in the media technology sector.  It incorporates data gathered in over 100 pre-show interviews of executives in the media technology sector, over 100 executive meetings at the NAB Show, year-over-year trend and project analysis from the last eight years of Big Broadcast Survey studies, and a detailed tracking of major announcements by media companies and media technology suppliers.

 

Report Purchase Option:

 

Take a Survey Option (Available to Technology Buyers, Users, and Suppliers):

  • Click here to register to take the 2017 Big Broadcast Survey.
  • You will receive a survey invitation automatically after sign up
  • The interactive survey will ask custom questions based on your specific interests. It will take 10-30 minutes to complete, and you can pause the survey at any time and restart where you left off by simply clicking the link again. All individual answers are kept strictly confidential.
  • Shortly after completing the survey, we will send you a link to download a complimentary copy of the 180-page report.
  • Recognizing the value of your time, in addition to the 180-page report, you will also receive:
    • A 50+ page summary of this year’s market study as soon as it’s available
    • One or more entries into the sweepstakes drawing to win 1 of 10 prizes: one of ten $500 (USD) Amazon gift cards. Please click here for full terms and conditions

 

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

 

 

Reminder: 2017 NAB Show Media Technology Business Summit is Sunday April 23rd

Analysis, broadcast industry technology trends, broadcast industry trends, Broadcast technology channel strategy, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results, Conference Sessions, market research, Media Services M&A, Online Video, OTT Video | Posted by Joe Zaller
Apr 21 2017

If you are attending the 2017 NAB Show, and you want to understand the commercial and technical issues that are driving the industry forward, you don’t want to miss the sixth annual Media Technology Summit.

11:00am – 3:00pm, Sunday, April 23, 2017

Las Vegas Convention Center, Room N249

We’ve worked hard to bring together an outstanding line-up of technology and business thought leaders from all parts of the media technology ecosystem, and we are very grateful that this incredible group has agreed to take part in this year’s event and share their experiences with our audience.

The full conference agenda is at the bottom of this post.

This summit is the one place at the NAB Show where C-Level executives from each part of the media ecosystem discuss the commercial issues facing their organizations, and how this has and will impact their technology investment and deployment strategies. Whether you are a media company, technology supplier, finance professional, or industry strategist, if you want to understand the executive perspective on business developments in the media technology sector, we’re sure you will find the conference to be a thought-provoking kickoff to the NAB Show. It’s also a great networking opportunity.

In addition to executive panel discussions, we will also provide an overview of the most up-to-date industry market research and analysis.  This includes preliminary findings from the 2017 Devoncroft Partners Big Broadcast Survey, the industry’s definitive demand-side market study, and the 2017 Global Market Valuation Report (GMVR), which is published by IABM DC, a 50-50 joint-venture between Devoncroft Partners and industry trade association IABM.

If you have not yet participated in the 2017 Big Broadcast Survey, you can register here and join thousands of your colleagues worldwide in the definitive study of media industry trends.

If you’d like to attend the Summit, all you need is an NAB Show badge.  So please bring any colleagues interested in the changing landscape of media technology.

You can also register using code ATT2.

This event has been standing-room-only for the past several years, and we are expecting a large turn-out, so please come early.

 

2017 NAB Show Media Technology Business Summit

Conference Agenda

11:05am – Strategic Industry Analysis: Valuations, M&A, and Equity Finance

Joshua Stinehour, Principal Analyst, Devoncroft

 

11:25am – The Broadcast & Media Technology Industry in 2017

Joe Zaller, President, Devoncroft

 

11:50am – The Vendor C-Suite: Strategies for an Evolving Market

David Ross, CEO, Ross Video

Johan Apel, President & CEO, ChyronHego

John Stroup, President, CEO, Belden, Inc.

Ramki Sankaranarayanan, CEO, Prime Focus Technologies

 

12:30pm – Leveraging Hyperscale IT Infrastructure for Next-Generation Media Workflows

Dave Ward, Senior Vice President, Engineering Chief Technology Officer and Chief Architect, Cisco Systems

Keith McAuliffe, Vice President and Chief Technologist, HPE Servers Global Business Unit Hewlett Packard Enterprise

Peter Guglielmino, Media & Entertainment CTO, IBM

Tom Burns, Media & Entertainment CTO, DELL EMC

Moderator: Al Kovalick, Founder, Media Systems Consulting

 

1:15pm – Service Provider C-Suite: Perspectives on the Future of Media Technology

Barry Tishgart, Vice President, Comcast Technology Solutions

Bill Wheaton, Executive Vice President & Chief Strategy Officer, Akamai

Darcy Antonellis, Chief Executive Officer, Vubiquity

Usman Shakeel, Worldwide Technology Leader Media & Entertainment, Amazon Web Services

Moderator: Janet Gardner, President, Perspective Media Group

 

1:50pm – The Broadcaster C-Suite: Trends Driving Investment Decisions

John Honeycutt, CTO Discovery Communications

Renu Thomas, EVP Media Operations, Engineering & IT Disney/ABC Television Group

Richard Friedel, EVP and GM, Fox Network Engineering and Operations

 

2:30pm – The Broadcaster C-Suite: The Opinion of Financial Decision-Makers

Christine Dorfler, Chief Financial Officer, NBCUniversal Owned Television Stations

Joe Dorrego, EVP/CFO, FOX Television Stations

Lucy Rutishauser, Senior Vice President Chief Financial Officer & Treasurer, Sinclair

Michael Tuvell, Senior Vice President Chief Financial Officer, Tribune Media

 

Related Content:

2017 Media Technology Business Summit Agenda on NAB Show website

 

© Devoncroft Partners 2009 – 2017. All Rights Reserved.

 

Telestream to Acquire IneoQuest

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Mar 09 2017

Telestream announced that it has agreed to acquire IneoQuest, a provider of quality control and analytics solutions for broadcast and network providers.  The closing of the transaction remains subject to customary conditions and is expected to occur toward the end of the month.  Telestream-IneoQuest

This is the second test and quality control (QC) firm Telestream has acquired in the past six months.  In September 2016, Telestream purchased UK-based Vidcheck.  It also makes the second acquisition by Telestream
since being acquired by private equity owner GenStar in January 2015.

The terms of the deal were not disclosed.  IneoQuest last publicly disclosed revenue in 2011 (as part of the Inc. 5000), when annual revenue was just below $40 million.  An interview of IneoQuest’s CEO Calvin Harrison, by CEOCFO magazine in April 2013, quoted Calvin as projecting “double digit growth again this year.”  There has been no subsequent guidance on revenue performance by IneoQuest.

Commenting on the transaction, Calvin stated, “We are happy to be joining the Telestream family and are looking forward to seeing our technology contribute to Telestream’s next phase of growth.”

As part of the press release announcing the acquisition, Telestream management focused on how IneoQuest expands Telestream’s existing capabilities in quality control and monitoring.  “When it comes to media processing and delivery, the Telestream brand has become synonymous with quality. With the addition of IneoQuest technology to our existing QC capabilities, our customers will have the ability to monitor quality at any point in the delivery pipeline, making diagnosing and correcting a problem easier than ever before” explained Dan Castles Telestream’s CEO.

 

Related Content:

Telestream Press Release

 

 

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Avid Receives Investment from Beijing Jetsen Technology; Signs Exclusive Distributor Agreement

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Jan 31 2017

Beijing Jetsen Technology (“Jetsen”) will invest $18.1 million (USD) in Avid Technology for a minority equity stake of between 5.0% and 9.9%.  Jetsen will also receive a board observer seat on Avid’s board of directors. Closing of the investment is subject to government approvals, which Avid expects to receive during the second quarter of 2017.  Avid_Technology_logo

The final ownership percentage is determined by dividing the investment amount of $18.1 million by the volume-weighted (i.e. denominator is cumulative volume) average market price of Avid’s shares for the 30 days preceding the closing date.  As a reference point, Avid shares closed at $5.03 on Monday, January 30, 2017.  Using this share jetsenlogoprice figure, the investment would equate to an equity stake of approximately 8.2% on a fully diluted basis.

Jetsen is headquartered in Beijing, China and listed on the Shenzhen stock exchange (2011 IPO).  Jetsen’s has operations in several segments of the media sector including an integration services business, a production company, along with investments in film and television programming.  At current exchange rates Jetsen had over $450 million (USD) in total revenue for the twelve month period ending September 2016.  Jetsen is active in several other verticals in addition to media.  Based on a review of its 2015 annual report, media operations accounted for approximately 30% of total revenue.

Avid provided the below summary slide on Jetsen as part of its presentation accompanying the announcement.

jetsen-summary

Concurrent with the investment, Avid entered into a commercial partnership making Jetsen the exclusive (master) distributor of all Avid products and solutions for the Greater China region (encompassing China, Hong Kong, Macau, and Taiwan).  All existing Avid channel partners in Greater China will transfer to Jetsen.  The agreement will also include technical support, with any associated maintenance revenue benefiting Jetsen.

“Jetsen’s strong position in the region, combined with Avid’s market-leading products and comprehensive solutions, presents an exciting opportunity for Greater China’s fast-growing media industry,” said Shengli Han, CEO, Beijing Jetsen Technology.

Avid will receive annual minimum performance guarantees for Greater China amounting to an approximately 15% annual growth for the region.  The growth refers to both recognized revenue and cash received.  The contract has a duration of five years.  The total contract value for the first three years alone represents at least $75 million to Avid.

In addition, Jetsen will take over Avid’s operations in Greater China.  This represents a cost savings to Avid in the amount of $3 million annually.  The below slide from Avid’s presentation offers a summary of the key terms.

jetsen-gotomarket

During the conference call with analysts, Louis Hernandez, Jr., Chairman and Chief Executive Officer of Avid added context on the rationale behind the equity investment by Jetsen.  “They [Jetsen] are really the ones that wanted to infuse equity. We had several ideas we were running to shore up our liquidity and cash not because of our concerns, we know it’s a significant concern to investors, so we wanted to take that out of the equation so they focus on what’s about to happen with the end of the transformation, and but that’s something they wanted to do. As long as we structured in a way that would minimize dilution, we are open minded to it and that’s where what how we ended up.” said Hernandez.

Throughout the conference call with analysts Louis Hernandez, Jr. referenced Avid’s ongoing transformation, which management has communicated will end with the second quarter of 2017.  Consistent with this message, Hernandez added the following commentary on the Jetsen agreement, “As we start to enter the next phase of Avid’s strategy, our agreement with Jetsen will give us much stronger go-to-market capabilities to expand our market position, drive consistent business growth and have the needed partner to accelerate our cloud-enabled Avid Everywhere strategy across Greater China.”

 

 

Related Content:

Avid Press Release on Beijing Jetsen Technology Agreement

Avid Presentation on Beijing Jetsen Technology Agreement

 

 

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