2018 BROADCAST INDUSTRY MARKET SIZING

The Broadcast Industry Global Market Valuation Report (GMVR)

Published by IABM-DC, a joint venture of Devoncroft Partners and the IABM

 

The Global Market Valuation Report (GMVR) is the definitive market sizing report in the broadcast and digital media industry.

Providing comprehensive market sizing data for the entire broadcast industry (approximately 150 product categories across nine segments), the GMVR is published through a unique partnership between the IABM, the trade association that represents media technology suppliers worldwide, and Devoncroft Partners, a leading provider of market intelligence products and services to the broadcast and digital media industries.

IABM and Devoncroft have joined forces and established a joint venture – IABM DC LLC – whose sole purpose is to provide high-quality market sizing and forecasting data, and related products and services. The combined experience, skills, and intellectual property of IABM and Devoncroft have been combined to produce the GMVR on an annual basis.

 

Broadcast and Media Technology Industry Market Sizing

The total market for media technology products and services returned to modest growth in 2016 – projected to be 2.3% up at $51.35bn according to the newly released 2017 Global Market Valuation and Strategy Report (GMVR), published by IABM DC, a joint venture between IABM and Devoncroft Partners.

This follows a dramatic decline of 6.3% in 2015 – which turned out to be even greater than originally projected (-4.3%). Significant currency exchange rate fluctuations continued to play a role in 2016, but the underlying driver the media technology market remains the ripple effect from the fundamental structural change in end-users’ business models.

The broadcast and media technology industry has of course been through a number of major transitions over the years – black and white to color, analog to digital, SD to HD – but never before has such a structural shift happened. Today, we are not merely replacing old boxes with new; business models, operations, culture and technology are all fundamentally changing as the power shifts to the viewer with an ever-increasing number of media choices.

End-users are responding by moving to Opex-based, software-driven business and technology models to deliver the agility and flexibility they need to keep up with viewers. This is reflected in the 2017 GMVR – Services were up 3.3% to $29.06bn while Products only grew 0.9% to $22.28bn. This is in line with a six-year trend in the GMVR, reflecting the market’s transition from hardware to software.

While the overall size of the market has remained stable in this period, profit margins for software-based products are significantly greater than hardware. Thus, for the same market size, profitability – the driver for investment – looks set to improve significantly as media technology vendors continue to command a premium for their industry-specific solutions, replacing low-margin hardware income lost to IT vendors for their COTS platforms.

There are also significant market opportunities revealed by the GMVR. For example, workflow orchestration grew by 39%, OTT managed services by 17%, and the market for routers – both baseband and IP – also grew.

While IP has yet to translate into a major spending driver for end-users, with all parts of the industry now working together on interoperability initiatives and with new, common standards and codecs coming online, the move to IP-based infrastructures is now beginning to gain momentum.

Some vendors continue to face the challenge of supporting traditional products that are still in use in many facilities while funding development of next-generation, software-based solutions. At the same time, they are having to change their business models to reflect end-users’ requirements; revenues that previously would land in a single Capex can now take 5-6 years to monetize. While this is causing a squeeze on cashflow for some in the near-term, in the longer term, shifting to a regular licence-based revenue stream – as seen in other verticals – will provide a more stable and predictable business model.

 

Unique collaborative framework creates authoritative reference, provides best-in-class data

The GMVR is the only report where broadcast industry vendors come together in a collaborative partnership, under a mutually-agreed framework of strict confidentiality, to share their revenue data, future forecasts, and detailed information on what drives their businesses.

Partner data is augmented by interviews with hundreds of industry insiders (including vendors, service providers, and broadcasters), publicly available information, and exhaustive research into each industry segment, sub-segment, and product category.

The result is the most comprehensive model ever created of the broadcast and digital media industry.

The IABM DC data model used to produce the GMVR encompasses more than 2,500 companies ranging from large service providers and technology vendors to small start-up businesses just breaking into the industry.

One of the key inputs to this data model is the comprehensive data submissions we receive from leading industry vendors who have signed on to be partners in this industry-wide collaborative effort. These partner companies have agreed to share historic and future projected sales data at a granular level according to our segmentation model of the industry.  They have also provided extensive input to the report through an interview and feedback process.

In addition to partner data submissions, many data submissions were received from non-partners. Data was also gathered from a wide variety of public and proprietary sources.   We also did an exhaustive review of company financials, and interviews with end-users about their past and future planned purchasing strategies.

 

 

 

 

 

IABM DC Global Market Valuation Report — Frequently Asked Questions

 

What data does the GMVR provide?

The report offers detailed market sizing information on products and services sold into professional media contexts.

Because the GMVR is based on actual sales data provided by a large number of broadcast industry vendors and service providers on a collaborative basis, this report provides a unique and unmatched level of detail and data accuracy.

Market sizing in the 2018 edition is available for historical years 2009 through 2017; an estimate for calendar year 2018; and forecast are provided for 2018 through 2020.  Sizing for the calendar years 2009 through 2015 are provided on a three-region basis (NALA / EMEA / APAC) for more than 100 product categories and 10 service categories.

High-level forecasting is available for eight product segments (together containing the 150 product categories) and the services segment.  More detailed forecasting is available for 29 individual sub-segments.

 

What qualitative information does the report provide?

A discussion of the primary trends and market drivers of each product category covered by the market sizing is provided with the data on each segment. More general trends impacting the sector (e.g. in the past trends in the behavior of buyers in the broadcast sector was a key topic) are discussed in separate sections and included with the purchase of any segment. Many clients feel that the qualitative information found in the report is one of the best information sources for professionals new to professional media supply and looking to build up knowledge.

 

How is the GMVR sold?

The GMVR is available via the IABM and/or Devoncroft Partners.

In creating the report, one of our objectives was to allow clients to purchase the entire report (all product segments) or just the specific segments that are of interest to them. Therefore the report was designed from the beginning to be modular.  This structure is important because the broadcast industry has a large number of small companies who don’t want and/or can’t afford to buy a monolithic report about hundreds of product categories that may not be relevant to them.

Within GMVR, there are nine individual product/segment reports, each of which are sold separately.

 

How can my company participate in future?

Eligible broadcast technology vendors can participate in the report by becoming a partner. This involves the sharing of information with the authors of the report, under NDA, to assist in the production of the detailed market sizing contained in the report. This includes historic sales data, short-term sales projections, and commentary on market dynamics. Confidentiality of partner data is of paramount importance. Partner data submissions will be used only in aggregate, and will not be disclosed in a way that makes it possible to reverse engineer information submitted by any one company.

Work has already begun on the next edition of the report, and we are actively looking for new partners to join this collaborative effort.

 

Selected benefits of participating in the report

Partners receive a number of benefits. These include:

  • input on report segmentation and content
  • access to the authors and analysts behind the report
  • invites to events and conferences where the report is discussed
  • partners receive preferential pricing
  • “early access” to selected data prior to general availability

 

How frequently is the GMVR produced?

The GMVR is produced annually.

 

Who produces the report?

The report is produced by IABM DC LLC, a joint venture between IABM and Devoncroft Partners.

 

Participating in the report

The report is a collaborative effort. It’s a “by the industry, for the industry” project that is coordinated by Devoncroft Partners and the IABM, the trade association that represents broadcast technology suppliers worldwide. All broadcast and digital media technology suppliers are invited to become partners and participate in this project.

 

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