Technicolor (formerly Thomson) issued a press release today announcing a reorganization plan for Grass Valley.
According to Technicolor, the worldwide market for professional broadcast equipment has declined 30% since 2008. Grass Valley’s revenues have declined 31% over the same period, resulting in a loss of €87m in 2009.
The Grass Valley reorganization plan will see the company being structured in three units — broadcast, head-ends and transmission.
It will also result in the loss of 625 jobs, or 25% of the company’s worldwide workforce.
For reference, in October 2009 at its US member days the IABM (an international association that represents broadcast technology vendors) said that the overall broadcast market declined by 9.5% last year, when taking both product and services revenue into account. At that meeting, the IABM reported that in Europe, service revenue is now larger than product revenue. Clearly Technicolor is taking advantage of this by focusing on their services revenue while moving away from product-0riented revenues.