Boutique investment bank Silverwood partners, who is very active in the broadcast market, often publishes a commentary on the digital media industry in the run up to major trade shows, and IBC 2010 is no exception
The company recently published a 39-page slide deck that offers a strategic analysis of the media technology industry. In it Silverwood bankers outline their perspective on the broadcast industry. The document, which is in the form of a slide deck, is split into three parts.
Part one covers general industry trends such as activity, audience fragmentation, live vs. non-live broadcast, and 3DTV (long terms and short term impact), before moving on to more detailed commentary on the state of the industry.
The analysis starts with a slide titled “The Crisis in Broadcast and Post‐Production” that uses IABM data to show the number of broadcast technology vendors operating at a loss while experiencing declining sales.
Paret three finishes up with an overview of online video (a slight departure from their NAB 2010 note) and a summary of recent industry M&A transactions.
In a nutshell, Silverwood’s thesis is that the industry is changing, and vendors must change and/or consolidate to survive in this new environment. Silverwood makes this case by highlighting the changing business models of broadcasters, the unstoppable encroachment of generic IT technology, the shift in selling, and the ways in which broadcast technology procurement is changing.
Naturally, Silverwood who makes their money through fees associated with transactions, is encouraging vendors to explore M&A and consolidation in order to survive in the current environment.
Nevertheless, this is highly relevant and thought provoking document, which should be required reading before IBC 2010.
You can download Silverwood’s 39-page analysis of the media technology industry here.