Archive for the ‘broadcast industry trends’ Category

Don’t Miss The Media Technology Business Summit at the 2016 NAB Show

Analysis, broadcast industry technology trends, broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, Conference Sessions, technology trends | Posted by Joe Zaller
Apr 16 2016

Media Technology Business Summit

1:00pm – 5:00pm, Sunday, April 17, 2016

Las Vegas Convention Center, Room N249

Open to all 2016 NAB Show Registrants

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2016 Devoncroft NAB Media Technology Busienss Summit

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Conference Agenda

1:00pm – Strategic Industry Analysis: Valuations, M&A, and Equity Finance

  • Joshua Stinehour, Principal Analyst Devoncroft

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1:25pm – Follow the Money: Trends Driving Media Investment

  • Joe Zaller, Founder & President Devoncroft

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1:50pm – Change is the New Normal: Transforming for Business Success in the New Media Landscape

  • Ulf Ewaldsson, SVP, Group CTO, & Head of Group Function Ericsson

 

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2:10pm – The Vendor C-Suite: Strategies for an Evolving Market

  • Louis Hernandez, Jr., President & CEO Avid
  • Charlie Vogt, CEO Imagine Communications
  • Larry Kaplan, Founder & CEO SDVI
  • Dan Castles, CEO Telestream

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2:50pm – 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
  • Håvard Myklebust, CTO TV2 Norway

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3:30pm – Leveraging Hyperscale IT Infrastructure for Next-Generation Media Workflows

  • Michelle Munson, President, CEO, and Co-Founder Aspera, an IBM Company
  • Michael Koons, VP, Worldwide Systems Engineering Cisco Systems
  • Tom Burns, CTO, Media & Entertainment EMC/Isilon
  • Ulf Ewaldsson, SVP, Group CTO, & Head of Group Function Ericsson

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4:00pm – Service Provider C-Suite: Perspectives on Industry Trends

  • Chris Walters, CEO Encompass Digital Media
  • Ramki Sankaranarayanan, Founder & CEO Prime Focus Technologies
  • Avi Cohen, CEO RR Media

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4:30pm – AWS Keynote – “All In”: Cloud Transformation of the Media Industry

  • Alex Dunlap, General Manager AWS CloudFront
  • Sam Blackman, CEO and Co-Founder Elemental Technologies

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We look forward to seeing you there. Additional information on the Summit is available from the Devoncroft Partners website and the NAB Show website.

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© Devoncroft Partners 2009 – 2016. All Rights Reserved.

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Download New Devoncroft Partners Report: 2016 NAB Show – Observations and Analysis of the Media Technology Industry

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research | Posted by Josh Stinehour
Apr 16 2016

Ahead of the 2016 NAB Show, Devoncroft Partners has published an analysis of the trends and strategic drivers in the broadcast and media technology sector.

A link to download this report can be found at the bottom of this page.

NABShow-Cover-2016

The report covers and provides commentary on a variety of significant market trends, drivers, and events, including:

  • Media Revenue Models Transitioning
  • Digital Monetization Challenges
  • Media Restructuring Announcements
  • Changing Customer Budgets
  • Review of Technology Investments by Large Media Customers
  • Key Trends Driving Investment Activity
  • Media Technology Industry Market Performance 2009 – 2015
  • Technology Vendor Results in 2015
  • Consolidation Across Media Value Chain
  • Implications of Market Developments on Technology Vendors

 

In addition, the analysis includes preliminary excerpts from the 2016 Big Broadcast Survey (BBS), the largest and most comprehensive study of technology trends, buyer behavior, and vendor brands in the broadcast and media technology sector.

We are interested in your feedback, comments, and questions on this report.

If you would like to schedule a meeting at the NAB Show, please let us know as soon as possible.  We are in the process of finalizing the NAB Show schedule for the Devoncroft team, and have limited availability remaining.

We hope to see you in Las Vegas.

 

Please click here to download a PDF copy (10 MB) NAB Show 2016 – Observations and Analysis of the Media Technology Industry from Devoncroft Partners (registration required).

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

Media Technology CTOs to Discuss What Drives Their Investment Strategies at 2016 NAB Show Conference

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor M&A, Conference Sessions, technology trends | Posted by Joe Zaller
Apr 11 2016

If you want to understand what’s driving media technology investments, don’t miss The Broadcaster C-Suite: Trends Driving Investment Decisions” at the 2016 NAB Show.

This moderated panel discussion about how evolving business models will drive media technology spending features four top executives: Richard Friedel- EVP and GM FOX NE&O; Håvard Myklebust – CTO of TV2 in Norway;  John Honeycutt – CTO of Discovery Communications; and Renu Thomas – EVP Media Operations, Engineering and IT at the Disney/ABC Television Group.

 

Devoncroft NAB 2016 Broadcaster Panel

 

This panel is just one of the sessions in the 2016 Media Technology Business Summit, produced by Devoncroft Partners and the NAB Show.

Designed to be a thought-provoking kickoff to the 2016 NAB Show, this half-day conference examines the “the business of the media business” from the perspective of all levels of the media value chain.  It is also an opportunity to network with the media technology executive community ahead of the start of the exhibition.

The Media Technology Business Summit is a half-day conference.  It starts at 1pm on Sunday April 17th, 2016 in room N249 of the Las Vegas Convention Center.

This event has been standing-room only for the past four years.  So please come early if you want a seat.

Admission is open to all registered 2016 NAB Show attendees (remember to bring your NAB Show badge).

Full details are available here, and on the NAB Show website.

 

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

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Evolution of Opinions About Virtualization and Cloud Technology / Service in the Media and Broadcast Industry

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Conference Sessions, technology trends | Posted by Joe Zaller
Nov 18 2015

This is the third in a series of articles about some of the findings from Devoncroft’s 2015 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2015 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

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The Most Interesting Take-Away From the 2015 SMPTE Conference … A Change in Sentiment Towards Cloud

On the last day of the 2015 SMPTE technical conference in Los Angeles, I was chatting to the CTO of a large media company.  I asked this person their opinion on the most interesting take-away from the 2015 SMPTE Conference.

After pause for thought the answer (I am paraphrasing here) was that three years ago when SMPTE started the cloud technology track at their annual conference, the 2013 cloud session chair Al Kovalick (who this year chaired the IP Networking track) practically had rotten tomatoes thrown at him when he told the (highly skeptical) audience that broadcasters and media company could indeed get to 5 nines” of reliability, and that it would not be long until media technology infrastructure migrated to the cloud.

Fast forward three years to the 2015 SMPTE Technical Conference, and the most interesting take-away for this media CTO was that not only were there no tomatoes thrown at speakers presenting papers about cloud and IP – it was just the opposite.  There appeared to be was broad agreement, that cloud technology is real (or at least becoming real) and that media companies are rapidly adopting it in various ways.  So minds (and therefore budgets) have changed considerably in a very short space of time.

 

Our Research Shows a Similar Change in Sentiment

What this executive expressed dovetails with the way the opinions of participants in Devoncroft’s annual Big Broadcast Survey (BBS) have changed over the past several years.

As mentioned in a previous post, 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.

The way the opinions about cloud technology and virtualization have evolved in the minds of media and technology buyers is very interesting to observe.

In the 2015 BBS Broadcast Industry Global Trend Index, “Cloud computing / virtualization” ranked as the #5 trend (maintaining the same position as in 2014 and 2013).

For the past several years, it was apparent that there was not a clear understanding of how cloud technology would be deployed in the broadcast environment, and what benefits it would bring.

Today, our research shows that despite remaining skepticism about the cloud (not to mention security concerns), the acceptance of (or at least the willingness to consider) cloud technology and related services increased noticeable over the past several years.

 

 

Plans for Cloud Deployment in Media and Broadcast

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?

There is a substantial amount of additional data captured in the 2015 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 2015 BBS Global Market Report (available for purchase).

Over the past year, we’ve observed that cloud services / cloud technology is one of the fastest growing areas of project spending in the media and broadcast industry.

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?

 

Opinions and Sentiment About Cloud are Changing Rapidly

Perhaps more than any other topic, the industry’s plans for cloud have evolved considerably over the past several years.

For the past several years, we’ve been asking BBS respondents what they’ve already deployed, or plan to deploy in the cloud over the next 2-3 years.

As the chart below highlights, the answers given by BBS respondents over the past several years have changed over time, as cloud went from a non-issue, to a curiosity, to a top-5 project.

Today, we are hearing more and more from end-users about serious projects being deployed in the cloud, and many more are evaluating how to take advantage of the benefits offered by cloud technology.

 

2009-2015 Evolution of planned cloud deployments in media & broadcast

 

To further illustrate how plans for deployment of cloud technology in media and broadcast have changed over the past several years, the three “word clouds” below show the free-text responses we received from BBS participants about what they have already deployed in the cloud or are planning to deploy in the cloud over the next several years.

 In 2013, plans for cloud technology were highly fragmented, with projects ranging from email, to collaboration, to storage and archive.

 

2013 BBS - Planned Cloud Deployments

 

Many respondents to the 2013 BBS said they planned to use cloud technology to deploy things like email systems, collaboration portals and file-sharing, and straightforward applications such as off-site storage of media assets. However, very few respondents contemplated “serious” media operations in the cloud.  Perhaps that’s because they were busy throwing tomatoes at Al Kovalick…

 

One year later, respondents to the 2014 Big Broadcast Survey revealed that they had started to contemplate more seriously what could be done in the cloud for media operations.  In addition to plans for email and collaboration systems, there was a noticeable increase in the number of companies that were planning to utilize cloud applications for media processing (such as transcoding and editing) and workflow-related applications (such as VOD and archive management).

 

2014 BBS -- Planned Cloud Deployments Word Cloud

 

We also heard from many 2014 BBS respondents that they were beginning to experiment with different operational models and architectures involving virtualization and cloud technologies.  However, in 2014 the majority of responses still involved more “simplistic” cloud technologies such as collaboration, off-site storage, and subscription software services, and file sharing.

 

By 2015, both cloud infrastructure as well as end-user understanding of what can be done in the cloud had evolved.

2015 BBS - Planned Cloud Deployments.

2015 BBS respondents shared information about specific projects already underway, or that have been completed.  We’re also seeing planned cloud deployments of “serious” media operations such as playout, compute, workflow, and MAM.

Perhaps most interestingly, we saw the term “confidential” more than ever when we asked people about their plans to use for virtualization and cloud technology in broadcast and media operations.  Based on what we see and hear in the market, we’re taking this as an indication that that trials and projects are already underway.

This was reinforced throughout the 2015 SMPTE Technical Conference, where presenters from BT, Fox NE&O, Amazon AWS, Sundog, Telestream, Levels Beyond, and others all talked about the potential of virtualization and cloud, and described real-world examples of how cloud and virtualization are being used today, and how this will increase in the future.

So hearing from a media company CTO that one of the most interesting take-aways from the 2015 SMPTE conference was that there is growing acceptance of cloud is not a surprise.  Our data shows a clear progression of the importance of cloud technologies and cloud services in media and broadcast operations, and we expect this to continue into the future.

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Related Content

2015 Big Broadcast Survey (BBS) Reports Now Available

The 2015 Big Broadcast Survey

Ranking The Most Commercially Important Trends in Broadcast and Media Technology – 2015 Edition

Download New Devoncroft Partners Report: NAB 2015 – Observations and Analysis of the Media Technology Industry

New Devoncroft Report Available for Download: IBC 2015 – Observations & Analysis of the Media Technology Industry

2015 SMPTE Technical Conference Program

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Ranking The Most Commercially Important Trends in Broadcast and Media Technology – 2015 Edition

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research, OTT Video, technology trends | Posted by Joe Zaller
Nov 09 2015

This is the second in a series of articles about some of the findings from Devoncroft’s 2015 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2015 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

Each year, Devoncroft Partners conducts a large-scale global study of the broadcast industry called the Big Broadcast Survey (BBS).  Nearly 10,000 broadcast professionals in 100+ countries participated in the 2015 BBS, making it the most comprehensive study ever done in the broadcast industry.

Firstly, we’d like to once again thank all the people who participate in the BBS each year.  We’re 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.

Based on discussions with clients, end-users, and experts during the planning stages of the 2015 BBS project, we decided to maintain the same list of trends as contained in the 2014 BBS Broadcast Industry Global Trend Index.  The benefit of this approach is a straightforward comparison of how trends were ranked in 2015 versus 2014 across all demographics.

After this review process, the decision was taken to not change the trends measured in the 2015 BBS.  This enables a 1:1 comparison of trends on a year-over-year basis.


 

The 2015 BBS Broadcast Industry Global Trend Index

To create the 2015 BBS Broadcast Industry Global Trend Index, we presented BBS respondents with a list of 18 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 2015 BBS Broadcast Industry Global Trend Index is shown below.

 

 

2015 BBS - Devoncroft Big Broadcast Survey 2015 Broadcast Industry Global Trend Index

 

When reviewing the data presented above, readers should note the following about the 2015 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 2015 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 2015 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 rise of new distribution mediums and devices.  Indeed, across multiple studies, research participants have repeatedly stated multi-platform content delivery is the most commercially important trend to their business over the next several years.

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 has not yet (with few exceptions) translated 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.

These implications are addressed later in this report, as well as on the Devoncroft website.

Although multi-platform content delivery is by far seen as the most important trend in 2015, there are quite a few other interesting things to consider in the BBS Broadcast Industry Global Trend Index.

For over the past decade 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 seven years 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 2015, the transition to HD operations declined further, now ranking #8.  However, within developing markets or smaller media markets within developed regions, the HD transition remains one of the strongest drivers of broadcast industry revenue.

We provide significant coverage of the ongoing global transition to HDTV operations in the 2015 BBS Global Market Report (available for purchase). This includes a granular breakdown of the current and projected future progress that end-users have made in their transition to HD, as well as the upgrade plans for fifteen product categories including cameras, switchers, routers, servers, graphics, encoders, and video transport. We’ll also be publishing more information about project-based spending and the HD transition later in this report, as well as on the Devoncroft website.

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 2015.  These included the progression of interoperability standards (e.g. SMPTE 2022-6), the advancement of work from the joint task force on networked media (JT-NM) [sponsored by SMPTE, EBU, and the VSF], the creation of several individual vendor ecosystems (e.g. Evertz ASPEN), and the elevated activities by large IT providers (e.g. Cisco).

A transition to IP-based infrastructures is likely inevitable given the comparative size of the broadcast technology sector versus the broader IT industry.  This greater size equates to far greater research and development resources.  There remains, however, several obstacles preventing widespread adoption of IP-based infrastructure in the immediate term.  For this reason we are expecting the move to IP to represent a major industry driver over the mid-to-long term.

Regardless of timing, the transition to IP-based infrastructure will have profound implications for both technology buyers and suppliers.

The #3 ranked trend in the 2015 BBS Broadcast Industry Global Trend Index is “4K / UHD.”  2015 is the second year the BBS has included 4K / UHD as a trend within the BBS Broadcast Industry Global Trend Index. It was added based on feedback from Devoncroft’s clients.  The high ranking of 4K / UHD in both 2014 (ranked #4) and 2015 demonstrates these requests were well-founded.

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.

While there is no doubt that 4K / UHD is a very important development, the data collected in the 2015 BBS lends skepticism to the proposition 4K / UHD will have a similar impact on the industry as the transition to HDTV operations, which drove a massive wave of technology spending that lasted more than a decade.

Although episodic and documentary content has, or will soon, move to 4K/UHD acquisition along with archive activities (because it extends the useful life of content assets), it will take time for 4K/UHD to move into mainstream live production environments such as news and sports.  One reason is creating a live event in 4K / UHD is complex and expensive to create versus an HD broadcast.  Uncompressed 4K / UHD requires real-time processing at 12Gbps, and the full production chain is not yet widely available.  Another critical issue is that (until mid-2015) most 4K / UHD capable cameras utilize large format single sensors and cine-style PL-mount lenses. While the shallow depth-of-field produced by these acquisition systems is a perfect match for theatrical or drama production, it causes problems in live sports production, where depth-of-field is important to keep critical action sequences in constant focus.  There were several announcements by camera manufacturers during 2015 to address this issue with depth-of-field.

Nevertheless, there’s no doubt that 4K / UHD is driving strong interest and excitement in the industry.  The question remains whether it will become a mainstream technology driver as HD has been, or whether it will only achieve penetration into technology infrastructure through the normal product upgrade cycle.

The trend ranked #4 in the 2015 BBS Broadcast Industry Global Trend Index, “file-based / tapeless workflows,” is a clear indication of the importance of increased efficiency for broadcast technology end-users.  This trend has accelerated as the transition to HDTV (ranked #8 this year) begins to decline in developed markets around the world.

Over the past several years, we’ve observed a pattern whereby broadcasters, who have invested considerable time, effort, and money into transitioning their operations to HD, begin to shift their focus towards increasing the efficiency of their operations. Over time, efficiency has become a key driver of broadcast technology purchasing.  In fact, our research shows that in many cases, increased operational efficiency and cost savings are more important than cutting-edge technology.

This is because the economics of the entire industry have changed – because of MPCD and other factors – and as a result, end-users must change their cost structure (radically in some cases) in order to generate sustained profitability into the future.

This has implications for the broadcast industry in terms of both workflows and product procurement, and as a result, the importance of both “file-based workflows” and “IP networking & content delivery” has increased as broadcast technology buyers continue to look for efficiencies as they transition to new technical platforms and business models.  The desire for broadcast technology buyers to gain operational efficiencies will likely continue to be a strong macro driver in 2015, as broadcasters continue to deploy new workflows.

Cloud computing / virtualization,” is the #5 ranked trend (maintaining the same position as in 2014 and 2013).

For the past several years, it was apparent that there was not a clear understanding of how cloud technology would be deployed in the broadcast environment, and what benefits it would bring.  This is still the case in many respects in 2015.  However, similar to observations in 2014, our research shows that despite remaining skepticism about the cloud (not to mention security concerns), the acceptance of (or at least the willingness to consider) cloud technology and related services increased noticeable during the year.

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?

There is a substantial amount of additional data captured in the 2015 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 2015 BBS Global Market Report (available for purchase).

Selected example data is provided in this free report from the Devoncroft 2015 BBS Global Project Index (see Part 2 of this report, starting on page 29).  It highlights how cloud services / cloud technology is one of the fastest growing areas of project spending in the broadcast industry.

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.

For the past several years, we’ve been asking BBS respondents what they’ve already deployed, or plan to deploy in the cloud over the next 2-3 years.

As the chart below highlights, the answers given by BBS respondents over the past several years have changed over time, as cloud went from a non-issue, to a curiosity, to a top-5 project.

 

2009-2015 Evolution of planned cloud deployments in media & broadcast

 

Today, we are hearing more and more from end-users about serious projects being deployed in the cloud, and many more are evaluating how to take advantage of the benefits offered by cloud technology.

But what are media technology end-users actually deploying in the cloud?  This will be discussed in a future post.

“Improvements in compression efficiency,” which is ranked #6 in the 2015 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.  Despite continued momentum in 2015, HEVC is still in early stages of adoption, though wider deployments are expected over the next 12 to 18 months.

In addition to creating greater efficiencies, end-users are also looking for ways to generate incremental revenue in an environment where the economic model of the industry is changing dramatically.  Thus “video-on-demand,” which is ranked #7 in the 2015 BBS Broadcast Industry Global Trend Index, will remain a strong driver for content owners, media companies and broadcasters.  The combination of MPCD, better compression technology, and an ever-increasing channel count, will drive video on demand deployments, whether via traditional broadcast and pay TV platforms, or over the internet or mobile networks.

The #8 ranked trend in the 2015 BBS Broadcast Industry Global Trend Index is the “transition to HDTV operations.

The transition to HDTV has been a huge driver of broadcast technology spending for more than a decade, but 2015 BBS respondents report that it continues to decline in terms of future commercial importance to their organizations.  In 2015, the technology required for the transition to HDTV is well understood by the majority of the market, even those who have not yet made the transition.

Despite its gradual decline in the 2015 BBS Broadcast Industry Global Trend Index rankings, we believe that the HD transition will continue to be one of the most important industry drivers over the coming years. There are a number of reasons for this, but the most important is that there is still a long way to go in the HD transition on a global basis. Indeed, our research shows that 2014 was the first year the total penetration of HDTV infrastructure surpassed the 50% mark for the global market.

Nevertheless, with the transition to HD having been a critically important driver for so many years, it begs the question of what’s next — as broadcast technology end-users in developed markets approach the completion of their HD transition, where does their focus (and spending) shift?

The “move to automated workflows” is ranked #9 in the 2015 BBS Broadcast Industry Global Trend Index

Better compression technology and lower cost integrated playout platforms (such as “channel-in-a-box”), will facilitate an ongoing proliferation of new TV channels.  This will in turn drive a focus on bringing highly automated operations to channel playout and master control environments. Thus we expect to continue to see a strong interest in the “move to automated workflows” over the next several years.  Automated workflows are also seen as drivers of efficiency.

While efficiency is undoubtedly very important to end-users, actually making money from new on-line channels has driven a significant increase in focus on content monetization via “targeted advertising,” which is ranked #10 in the 2015 BBS Broadcast Industry Global Trend Index.

“Remote production,” which is ranked #11 in 2015 BBS Broadcast Industry Global Trend Index is another trend that is focused on efficiency.  Through the use of remote production, broadcasters can lower their costs of producing live events, whether a small local soccer match or the World Cup.  Our research suggests that despite the potential for savings using “remote production” approaches for high-profile events, end-users are not yet comfortable adopting these approaches given the mission critical nature of the associated productions.  Therefore, the greater adoption for remote production is lower-tier events with inherently constrained revenue opportunities.

Similarly, broadcasters and media companies can achieve enormous cost-savings through the trend ranked #12 in the 2015 BBS Broadcast Industry Global Trend Index, “centralizing operations,” including playout and transmission.  A relevant example of centralized operations is the North American sporting leagues (including MLB, NFL, and the NBA) creating central facilities to handle the responsibility of in-game replays.

Although it’s towards the bottom of the rankings at #13, “analog switch-off” is very important for those regions where it’s happening today – primarily as mandated by local governments.  Our research shows that analog switch-off (also called “digital switch-over” in some territories) has driven huge waves of CapEx in those markets where it has already occurred.

As with previous years, the following trends were ranked towards the low-end of the Index: “transition to 3Gbps operations”, “transition to 5.1 channel audio”, “outsourced operations”, “3D TV” and “green initiatives.

 

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The information in this article is based on select findings from the 2015 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2015 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 2015 BBS data set. For more information about this report, please contact Devoncroft Partners

 

© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Related Content

2015 Big Broadcast Survey (BBS) Reports Now Available

The 2015 Big Broadcast Survey

Download New Devoncroft Partners Report: NAB 2015 – Observations and Analysis of the Media Technology Industry

New Devoncroft Report Available for Download: IBC 2015 – Observations & Analysis of the Media Technology Industry

The 2014 BBS Broadcast Industry Global Trend Index

Devoncroft Research: IBC 2014: Observations and Analysis of Broadcast and Media Technology Industry (free 52 page report, registration required)

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

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New Devoncroft Report Available for Download: IBC 2015 – Observations & Analysis of the Media Technology Industry

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor Brand Research, Broadcast Vendor M&A, Broadcaster Financial Results, market research, Quarterly Results, technology trends, Top Broadcast Vendor Brands | Posted by Joe Zaller
Sep 04 2015

In preparation for the 2015 IBC Show, Devoncroft Partners has published an analysis of the trends and strategic drivers in the broadcast and media technology sector.

This 90-page report is free. Registration is required.

A link to download this report can be found at the bottom of this page.

 

Included in the analysis are excerpts from:

 

  • The 2015 Big Broadcast Survey (BBS), the largest and most comprehensive study of technology trends, buyer behavior, and vendor brands in the broadcast and media technology sector

 

Devoncroft IBC 2015 Media Technology Analysis

 

The report covers and provides commentary on a the following media technology trends and drivers:

 

Yes, media delivery and consumption has changed… BUT:

  • Importance of industry-specific context when reviewing data points
  • Digital delivery is a cause, not the effect
  • For media technology industry, impact extends far beyond the obvious

 

 

Media business models in transition:

  • So far, media companies have benefited from OTT
  • But if cord cutting accelerates, does OTT enhance or erode profit?
  • Investor concerns have led to value erosion at both commercial and public broadcasters

 

 

Evolution of media business models driving transition of spending priorities:

  • Value to media companies of linear versus digital consumers
    • – New technologies required to monetize digital content
  • Reflected in changing investment patterns
  • Reflected in in-house technology development at media companies
  • Reflected in M&A – Ad Tech / Software
  • Reflected in new service offerings from media companies

 

 

Structural shift in technology spend:

  • Comparison of media technology CAGR 2009-2014
  • Value shift in favor of service revenue
  • Research shows that media technology spending shifts once HD transition is complete

 

 

Impact on technology vendor performance:

  • Spending pause in studio and infrastructure
  • Has spending resumed in delivery and OTT?

 

 

Review of NAB 2015 Strategy Conference:

  • Drivers of technology strategy
  • Insights from broadcaster CTOs, vendor CEOs, service providers

 

 

Review of 2015 Big Broadcast Survey (BBS):

  • Ranking and review of top media technology projects
  • Ranking and review of top media technology trends
  • Review of growth expectations for product categories and geographic regions

 

 

Thoughts on future industry evolution:

  • Where do technology suppliers add value in the future?
  • Timing of next technology transition
  • Impact of Software Defined Networking (SDN)
  • The move away from specialized products and applications
  • Implications for suppliers of media technology and services
  • The next format war – where is future value, and who is battling for dominance

 

 

Research background

 

 

We welcome feedback, comments, and questions on this report.

If you would like to schedule a meeting at the IBC Show, please let us know as soon as possible.

We are in the process of our IBC Show schedule, and have very limited availability remaining.

We hope to see you in Amsterdam.

 

 

Please click here to download a PDF copy (8 MB) IBC Show 2015 – Observations and Analysis of the Media Technology Industry from Devoncroft Partners (registration required).

 

 

Related Content:

Download IBC 2015 Media Technology Industry Analysis from Devoncroft Partners (registration required)

Collaborative Market Sizing Initiative Reveals Structural Shift in Broadcast and Media Technology Industry

2015 Big Broadcast Survey (BBS) Reports Now Available

 

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Broadcast Vendor M&A: Net Insight Acquires ScheduALL in $14 Million All-Cash Deal

Analysis, Annual Results, broadcast industry trends, broadcast technology market research, Broadcast Vendor M&A | Posted by Joe Zaller
Sep 04 2015

Net Insight announced it has acquired resource scheduling software provider ScheduALL in a $14m all-cash deal.logo-net-insight

The company says the deal will strengthen Net Insight’s “market position in media service and workflow orchestration.” ScheduAll_Logo

Media and workflow orchestration has become an increasingly important (and crowded) area over the past two years, with multiple vendors announcing new initiatives in this area.

This is Net Insight’s first acquisition in more than a decade.  At current exchange rates, the acquisition will consume approximately 40% of Net Insight’s cash balance as of the end of Q2 2015.

For the 2014 financial year, ScheduALL had revenue of $10.6m, approximately 60% of which was recurring. ScheduALL made a profit of $700,000 in 2014.

The implied multiples of the transaction are 1.3x 2014 revenue and 20x 2014 net profit.  In comparison, Net Insight trades in the public markets (as of 9/2) at 1.6x revenue and 25x earnings.  On both measures, the acquisition is accretive.

To put the acquisition’s impact in proper context, consider Net Insight has grown revenues since 2010 by approximately $10 million USD, which is roughly the acquired revenue from ScheduALL.

“This is a perfect match for Net Insight,” said company CEO Fredrik Tumegard. “We are not only executing on our strategy, we are also taking a giant leap towards our vision of creating a unified and global media market place for both service providers and media companies.”

Half of ScheduALL’s revenue in 2014 was from North America.  This will provide greater exposure to the North American market for Net Insight, which generated 44% of its revenue from the Americas (including South America) in fiscal 2014.

Adding to the financial benefits are the straightforward cost synergies from combining duplicative sales and marketing activities including trade shows.  No guidance was provided in the press release on the potential for cost synergies.

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Related Content:

Press Release:  Net Insight Acquires US Software Company ScheduAll

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© Devoncroft Partners 2009-2015. All Rights Reserved.

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Did NAB 2015 Change Your Opinions About the Broadcast and Media Technology Industry?

Analysis, broadcast industry technology trends, broadcast industry trends | Posted by Joe Zaller
Apr 22 2015

Depending on your perspective, the 2015 NAB Show may be remembered as a pivotal moment in the evolution of the media technology industry.BBS Logo

Whether you travelled to Las Vegas for the 2015 NAB Show or read about it in the trade press, it’s hard to disagree that the pace of change in the industry is accelerating rapidly.

There were a huge number announcements before and during the NAB Show. If you’re like us, you may be reviewing them in an attempt to separate hype from reality, while working to distill what you’ve seen and heard into an actionable strategy that moves your business forward.

 

Share your opinions on broadcast & media technology

Coming out of NAB 2015, you probably have a lot of opinions about trends, technology deployments, or the products and brands of media industry vendors; and we’d like to hear them.

You can share your thoughts by participating in Devoncroft’s 2015 Big Broadcast Survey (BBS), the largest and most comprehensive annual study of the broadcast and media technology industry.

 

Click here to register for the 2015 Big Broadcast Survey.

 

Once you complete the short registration process (necessary in an age of web-crawling spam bots), we’ll send you a link to participate in the 2015 BBS.

When you complete the 2015 BBS (which should take about 20 minutes), we’ll send you a recently published 60 page analysis of the media technology industry, including a snapshot of some of the most important trends and announcements from the 2015 NAB Show.

 

There are a million surveys… Why bother with this one?

In an age when cheap web-based tools allow anyone with $20 to do an online survey, the Big Broadcast Survey stands the test of time as a critical tool for media technology strategists.

The BBS takes a scientific approach that provides independent third-party validation a wide range of important topics. It allows both buyers and suppliers of media technology to benchmark themselves against their peers on a global basis.

That’s why technology vendors, broadcasters, service providers, and finance professionals rely on the BBS as one of the most important reference tools for the media technology industry.

That’s why there was a standing-room only crowd last week in Las Vegas when we shared some of the insights from the BBS as part of the fourth annual “Shifting Media Economics: Impact on Strategy, Finance, and Technology” event, which is now part of the NAB Show’s 2015 Media Finance and Investor Conference track.

Devoncroft 2015 NAB Show View of Crowd from PodiumView from the podium at during a break in the action at “Shifting Media Economics: Impact on Strategy, Finance, and Technology” at the 2015 NAB Show… due to the large crowd, the back wall had a be removed

 

 

We know your time is valuable, so when you complete the 2015 Big Broadcast Survey will receive:

  • A newly published 60 page analysis of the media technology industry, including a snapshot of some of the most important trends and announcements from the 2015 NAB Show

 

  • An 85-page summary of Devoncroft’s most recent global study of the market (as soon as you complete the survey)

 

  • A 50+ page summary of the 2015 survey results, as soon as it is available

 

  • One or more entries into a random drawing for a chance to win 1 of 5 prizes (Your choice of a DJI Phantom Aerial UAV Drone Quadcopter and GoPro HERO4 BLACK; OR iPad Air 2 Wi-Fi 128GB; OR US$750Marriott/ Ritz Carlton worldwide hotel voucher)

 

  • The opportunity to receive on going market intelligence about the latest industry trends and technologies from Devoncroft Partners

 

Click here to register for the 2015 Big Broadcast Survey.

 

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Top Broadcasters and Content Owners to Debate Key Trends Driving Future Technology Strategy at CCW Conference

broadcast industry technology trends, broadcast industry trends, Conference Sessions, market research | Posted by Joe Zaller
Nov 11 2014

If you are interested in better understanding how the dynamic changes in the media industry may impact future technology purchasing and deployment strategies at top broadcasters and content owners, you won’t want to miss the panel discussion that I will be moderating at the CCW / SATCON conference.

The session is called “Key Trends Driving Media Technology Investments,” and it happening on Thursday November 13th at 11:30 a.m. in Room 1A14 of the Javits Convention Center in New York.

Discussion topics will include strategic drivers of broadcast technology spending, key customer investment areas, new technology deployment trends, and the most significant industry trends impacting end-user purchasing decisions.

An outstanding panel of four senior M&E technology executives will offer informed perspectives on the most significant trends in the industry, and how their technology purchase decisions are being driven by these shifts in the market.

Confirmed participants include:

  • Richard Friedel, Executive Vice President & General Manager, FOX Networks Engineering & Operations

 

  • Fred Mattocks, GM, English Services, Media Operations & Technology; Chair, Technology Strategy Board, CBC

 

  • Delbert Parks III, SVP and Chief Technology Officer, Sinclair Broadcast Group

 

  • Diane Tryneski, Executive Vice President, Media & Production Operations, HBO Enterprises

 

In addition, the audience will benefit from a summary of key data derived from a variety of broadcast market intelligence projects including Devoncroft’s 2014 Big Broadcast Survey (BBS), the industry’s definitive demand-side market report.

Please note that this event is part of the paid conference at CCW. You can register for the CCW Conference here.

This should be a great session. I hope to see you there.

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Related Content:

CCW Session Description — Key Trends Driving Media Technology Investments

2014 CCW Conference Registration

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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There’s a Lot of Talk About Cloud Technology in Media & Entertainment, But What’s Actually Being Deployed?

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Sep 30 2014

This is the second in a series of articles about some of the findings from Devoncroft’s 2014 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2014 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

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There’s no question that cloud technology is a hot topic in the media and entertainment industry.

Indeed, it seems that these days you can’t read anything about industry technology trends (in broadcast or any other industry for that matter), NAB or IBC Show wrap-up piece, and/or manufacturer white paper, without coming across some mention of “the cloud.”

We see this in our own research too.

In the 2014 Devoncroft BBS Broadcast Industry Global Trend Index, “Cloud Services / Cloud Technology” was ranked the #5 in terms of the industry trends that are most important commercially to broadcast technology end-users world-wide.

This indicates that while there continues to be skepticism (not to mention security concerns) about cloud technology, the acceptance of (or at least the willingness to consider) cloud technology and services increased rapidly in 2014.

For example, data from the Devoncroft 2014 Big Broadcast Survey (BBS) Global Market Report shows that Cloud Services / Cloud Technology had one of the largest year-over-year percentage increases in terms of broadcast technology end-user project spending, when compared to wide variety of other capital projects.

So while there is still a great deal of hype about cloud in media and broadcast, there also appears to be genuine interest on the part of buyers to actually deploy technology in the cloud.

But what are buyers of broadcast technology actually planning to deploy in the cloud, and do they actually trust cloud technology?

To find out we asked participants in our 2014 Big Broadcast Survey (BBS) what they have already deployed, or plan to deploy in the cloud over the next 2-3 years.

Since we typically get about 10,000 people in 100+ countries participate in the BBS (thanks to all who participated, we really appreciate the time you spent sharing your feedback and opinions), we’ve gathered a lot of data on this and many other topics.

As simple example is shown in the “word cloud” below, which provides a graphical representation of how the many thousands of broadcast technology end-users who participated in the 2014 BBS responded to this simple question:  “what have already deployed in the cloud, or plan to deploy in the cloud over the next 2-3 years?”

Please note that the chart shown below is derived from “free-text” answers received in 10 separate languages from the many thousands of 2014 BBS respondents, so there is a lot going on in this diagram.

The free-text responses from 2014 BBS participants were used to create the “word cloud” shown below, whereby the font size of each term was made larger based on how often it was mentioned by 2014 BBS respondents (the colors do not mean anything, but they are pretty).

 

 

2014 BBS -- Likely Cloud Deployments in Broadcast Over Next 2-3 Years (small)

 

 

Although the data in this chart just scratches the surface in terms of the overall scope of opinions captured in the 2014 BBS, it’s a useful illustration of what broadcast technology buyers are thinking about actually deploying in the cloud.

It’s probably not surprising to most readers that “storage” was the use-case mentioned most often by 2014 BBS participants. The combination of low-cost digital acquisition technology, ever-increasing shooting ratios, and the desire to monetize content assets over multiple distribution platforms is driving the need for more storage (both on and off-premise). As one vendor told me recently, “the one thing I can tell you about content archives is that they are not getting smaller every day.”

More interesting, is that when you compare the above diagram with how last year’s BBS respondents answered this same question, is appears that there is more consensus beginning to emerge about media use-cases for cloud technology beyond the obvious.

In previous years, BBS respondents also reported that storage was one of the most important things they planned to deploy in the cloud.  However, after storage, the next most important response was typically “I Don’t Know.”

While there are still some BBS respondents who remain unsure about their cloud deployment plans, there are now many fewer, and it appears that in 2014 broadcast technology end-users are more serious than ever about deploying cloud technology.

In 2014, commonly cited use-cases for media and entertainment cloud deployments include streaming, archiving, editing, transcoding, and content distribution.

It’s also interesting to see specific vendors (including Adobe, Amazon AWS, Apple, and Dropbox) being frequently mentioned as being “the thing” that will be deployed in the cloud. This may indicate that technology buyers are looking to these vendors to provide them anything from specific cloud-based tools, to a complete end-to-end cloud solution.

Leaving aside specific technologies and vendors, sometimes it’s more useful to “zoom out to a 10,000 foot view” of the potential deployments of cloud technology in the professional media and entertainment industry.

Considered from this perspective, we believe that more significant than the technologies and vendors mentioned in the above chart, is the fact that cloud technology is being seen as increasingly important by major broadcasters and media companies.

There is plenty of evidence to support this premise, including several recently announced end-user initiatives and many discussions about creating a “virtualized broadcast infrastructure” in order to drive greater efficiencies. If this is the case, there are significant implications for all involved in the media supply chain, including both vendors and end-users.

Much more information about the attitudes of broadcast technology buyers towards cloud technology, and what broadcast technology buyers are likely to actually deploy in the cloud is available from Devoncroft Partners as part of our 2014 BBS Global Market Report. This report also includes information about what technologies end-users are planning to deploy in the cloud, when they are planning to deploy them, and what efficiencies they hope to achieve by doing so.

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Related Content:

2014 Big Broadcast Survey (BBS) Reports Now Available

2014 Broadcast Industry Market Research from Devoncroft Partners

Devoncroft Research: IBC 2014: Observations and Analysis of Broadcast and Media Technology Industry (free 52 page report, registration required)

2014 BBS: Ranking the Most Important Trends in the Broadcast Industry, Based on Commercial Importance to End-Users

2013 BBS: With All the Hype About Cloud, What Are Media Organizations Actually Going to Deploy?

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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