Posts Tagged ‘broadcast technology market research’

Vislink Revenue Declines 15% in 1H 2016; Forecasts Breach of Debt Covenants

Analysis, Broadcaster Financial Results, Quarterly Results | Posted by Josh Stinehour
Oct 05 2016

UK-based Vislink plc, which owns broadcast industry brands Advent, Link, MRC Gigawave, and Pebble Beach, announced results for the first half of 2016.  1H 2016 revenue was £22.6 million, a decline of 15% versus the first half of 2015.  vislink

Vislink was anticipating challenging results for the first half of 2016 having published a negative trading update on July 6, 2016.  The trading update warned sales in Vislink’s Communication System (“VCS”) business were below management expectations.  In addition, the July update indicated the further restructuring of VCS would necessitate a non-cash write-off of £6 – £9 million and additional annual cost reductions of £1 – £2 million.  This adds to last year’s restructuring of the division when headcount was decreased 26% and a £2.5 million charge was incurred.

The underperformance of VCS caused Vislink to consume its entire banking facility and will subsequently force Vislink to breach its debt covenants.  Once Vislink is officially out of compliance with its financing arrangements, the Company’s bankers may call for repayment of existing loans – which Vislink does not have the cash to repay.  While this represents a material uncertainty for the Company, Management did indicate it is engaged in constructive discussions with its bankers.

In order to improve cash generation, Vislink’s management is canceling the Company’s dividend until debt drop below EBITDA, canceling its equity incentive program for senior management, and will “continue to examine the appropriateness of the Board and Group structure.”

The announcement has resulted in a greater than 50% decline in Vislink’s stock price decline from close on September 29, 2016.  Measured against Vislink’s 52 week stock price, the decline is greater than 75%.

Net loss for the first half of 2016 was £32.2 million or 26.9p per share, compared to a net loss of £0.9 million or 0.4p per share in the year-earlier period.

1H 2016 operating loss was £32.0 million versus an operating loss of £0.8 million during 1H 2015.  Operating losses included non-cash write downs of £23.3 million for goodwill and acquired intangibles as well as a write-down of £6.3 million of inventory and capitalized development costs.

A majority of Vislink’s goodwill write-down was associated with the Broadcast division (excluding Pebble Beach).  The entire £20.6 million of goodwill for Vislink’s Broadcast division was written down.

Given the magnitude of the non-cash items it is informative to review operating cash flow for the period.  During the first six months of 2016 operating cash usage was £1.2 million, compared to generation of £0.8 million during the first half of 2016.

The results for the first half benefited from a positive £2.2 million foreign currency translation based on a weaker GBP.

Broadcast Performance:

Vislink’s broadcast revenue for the first half of 2016 was £20.6 million, a 7.6% decrease versus broadcast revenue in 1H 2015.  The decline was primarily related to an 18.5% year-over-year drop in the revenue of Vislink’s Communication Systems (“VCS”) business.

Management attributed the decline in VCS to a combination of a general pause in spending ahead of the adoption of next-generation technologies and a reduction in spend from broadcasters driven by a diversion of budgets from infrastructure to investing in content.

Pebble Beach revenue for 1H 2016 was £5.4 million, a slight decrease of 1.4% when compared to the first half of 2015.  In the commentary accompanying the earnings release, the Company highlighted a 53.3% growth in Pebble Beach’s order book to £5.4 million during the 1H 2016 (1H 2015: £3.5 million).

Revenue by Region:

  • Revenue from the UK & Europe region was £7.6 million during the first half of the year, an increase of 20.1% over the first half of 2015. The UK & Europe represented 33.6% of total revenue for the first six months of the year, versus 23.7% in the same period of 2015.
  • Revenues from the Americas were £7.9 million, a 27.4% decrease against 1H 2015. On a percentage basis, Americas was 35% of total revenue for the first half of 2016, down from 40.6% in 1H 2015.
  • First half 2016 revenue from the Middle East and Africa (MEA) was £3.2 million, down 3.2% versus 1H 2015. The MEA region represented 14.2% of revenue in 1H 2016, up from 12.4% during the first half of 2015.
  • APAC revenue in 1H 2016 was £1.9 million, up 4.1% versus the comparable 2015 period. APAC revenue was 8.4% of total revenue in 1H 2016, up from 7.1% in 1H 2015.

Operating Expenses by Function:

  • R&D expenses recognized in 1H 2016 were £3.6 million, a 29.5% increase over 1H 2015. As a percentage of revenue, R&D expense was 16.1%, a substantial increase from the 10.6% in 1H 2015.  During the first half, Vislink wrote down £0.8 million of capitalized R&D investment.  Management did not identify the associated products or technologies associated with the write down.
  • Sales and marketing (S&M) expenses were £4.6 million, a slight rise of 1.4% against 1H 2015 S&M expense level. On a percentage basis S&M was 20.2%, an increase over the 17.0% of revenue from 1H 2015.
  • Administrative expenses were £2.9 million, a decrease of 28% versus the first half of 2015.

Cash and Debt Levels:

Vislink had a cash balance of £3.1 on June 30, 2016, down from £3.2 at the end of 2015.  During the same time period, the Company’s debt balance increased to £12.0 million from £9.0 at the end of 2015.  These developments have increased Vislink’s net debt to £8.8 million.  This compares to net debt levels of £5.7 million at 2015 year end and £1.2 million at the end of the first half of 2015.

In the release Management indicted debt has increased further since the end of the June and Vislink is now using its entire Revolving Credit Facility of £15.0 million.

Business Outlook:

Vislink’s order book at June 30, 2016 was £11.4 million, an increase of 60.5% over the same date last year.

In their prepared remarks Management discussed the organic growth of Pebble Beach, its pipeline of software bolt-on acquisitions, and its continued focus growing Vislink’s software business.  The below slide is taken from the Vislink’s presentation on the first half results.

 

slide

 

“We continue to see significant underlying organic growth in our software business with a strong order intake which has carried through into H2.  The long term prospects for Pebble Beach Systems continue to improve as we augment our core enterprise software solutions with cloud enabled software applications. We also have a pipeline of partners and software bolt-on acquisitions which will further enhance the Group strategy of building a high margin, cash generative software business” said John Hawkins Executive Chairman of Vislink.

 

 

Related Content:

Press Release on Vislink 1H 2016 Results

Management Presentation on Vislink 1H 2016 Results

Trading Update on Vislink 1H 2016 Preliminary Results

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

Download New Report: IBC 2016 Media Technology Industry Analysis

Analysis, broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, technology trends | Posted by Josh Stinehour
Sep 09 2016

As the 2016 IBC Show kicks off in Amsterdam, Devoncroft Partners has published a 100+ page overview of recent developments in the broadcast and media technology sector.

A link to the download the report is available at the bottom of this page.

ibcshow-frontpage

The analysis reflects recent discussions we’ve had with executives at media companies, service providers, and technology vendors.  In particular, the presentation includes perspectives on the following,

  • Media Revenue Models Transitioning
  • Investment in OTT Technologies, Services
  • Invesotr Concerns on Media Industry Transition
  • Continued Media Restructuring
  • Media Technology Industry Market Performance 2009 – 2015
  • Technology Vendor Results in 2016
  • Market Catalysts in 2016
  • Sector Expectations for 2017
  • Review of Technology Trends, Project Deployments
  • Considerations for Future Media Technology Architectures
  • Implications of Market Developments on Technology Vendors

 

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 have limited availability remaining.

We hope to see you in Amsterdam.

 

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

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

EVS Revenue Increases Over 70% in Q2, Driven by Upgrades for Rio 2016

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 25 2016

Production and playout video server specialist EVS reported Q2 2016 financial results.  Revenues for the second quarter of 2016 were €39.8 million, an increase of 70.8% over Q2 2015 results, and an incrEVS_Logo (2013)ease of 48.0% versus the preceding quarter, Q1 2016.  Excluding the effect of exchange rate movements and big event rentals, the EVS’s Q2 2016 revenue increased 67.6% versus the year earlier period.

Driving revenue in the quarter were upgrades by outside broadcast (“OB”) companies upgrading equipment in preparation for the large events of 2016, in particular the Rio 2016 Summer Olympics.  Year-over-year revenue growth also benefited in part from a softer comparable period of Q2 2015.

Net profit for Q2 2016 amounted to €12.6 million (€0.93 per share), compared to €0.70 million (€0.05 per share) in the year earlier period and €4.9 million (€0.36 per share) in the preceding quarter.

Gross margins for the quarter were 77.3%, an increase of over 1000 basis points compared to Q2 2015, and an increase of 680 basis points when measured against Q1 2016.  Gross margins were boosted in part by higher margins associated with Rental revenue.  Management attributed the margin increase in Rental revenue to the completion of C-Cast development work, which negatively impacted the gross margin of Rental revenue in earlier periods.

Operating profit for the second quarter of 2016 was €17.40 million, up 815.8% compared to the second quarter of 2015 and up 128.9% versus the first quarter of 2016.  Operating margin for the quarter was 44.0%, a sharp rise over the 8.0% operating margins from the same period last year and the 22.7% operating margin achieved during the first quarter of 2016.

Research and development (“R&D”) expenses for the second quarter of 2016 were €5.45 million, or 14.0% of total revenue, a decline of 11.5% versus the R&D expense in Q2 2015, and a decline of 6.0% against Q1 2016.  As a percentage of sales, R&D expense was 26.0% of total revenue in Q2 2015 and 22.0% during Q1 2016.  Year-over-year comparisons were impacted by costs associated with the closing of EVS’s development office in Chengdu during Q2 2015.

Selling and administrative expenses for the second quarter of 2016 were €7.44 million, or 19.0% of total revenue, representing an increase 4.3% over the second quarter of 2015, and an increase of 16.3% versus the preceding quarter.  As a percentage of sales, selling and administrative expense was 30.6% of total revenue in Q2 2015 and 24.0% during Q1 2016.

EVS ended the quarter with 482 employees, down slightly from 483 at the end of the first quarter of 2016, and down from the 471 employees at the end of Q2 2015.

The order book stood at €41.8 million as of August 24, 2016, with 80% to 85% of the current order book set to invoice during the third quarter of 2016.  The current order book represents an increase of 13.6% over the order book on August 25, 2015 and a decline of 22.3% compared to the order book on May 10, 2016.

Revenue by Destination:

  • Revenues from Outside broadcast vans during the second quarter of 2016 were €22.2 million, a 75.3% increase versus the second quarter of 2015, and a 47.2% increase compared to first quarter of 2016. For the second quarter of 2016, this segment contributed 56.0% of the total revenue, which compares to 54.0% in Q2 2015 and 56.0% in Q1 2016. Revenue in this category was driven by customer upgrades to support the large event taking place in 2016.
  • Revenues from Studio & others during the quarter were €13.7 million, up 53.2% compared to the year earlier period, and up 16.0% versus the preceding quarter. For the second quarter of 2015, this segment contributed 34.0% of total revenue, a decline versus the contribution of 38.0% in Q2 2015 and 44.0% in Q1 2016.
  • Revenues from Big sporting event rentals during the quarter were €3.9 million, an increase of 127.3% versus the year-earlier period. There were no rental sales in the first quarter of 2016.  For the second quarter of 2016, this segment contributed 10.0% of total revenue, a decrease versus 7.0% contribution in Q2 2015.

The below slide from EVS’s Q2 2016 earnings presentation illustrates the revenue breakout by destination for historical periods.

slide

Revenue by Nature:

  • Systems revenue in the quarter was €36.80 million, up 68.8% versus Q2 2015, and an increase of 49.3% against Q1 2016. During the second quarter of 2016, Systems revenue represented 92.0% of total revenue, comparable to the 94.0% in Q2 2015 and 92.0% in Q1 2016.
  • Services revenue was €2.98 million for Q2 2016, up 97.4% versus the year ago period, and a rise of 34.2% compared to Q1 2016. Contribution to the second quarter of 2016 revenue was 7.0% of the total, which is in-line with the contribution of 6.0% in Q2 2015 and 8.0% in Q1 2016.

Revenue by Geography:

  • Revenue from EMEA (excluding events) in the second quarter was €13.5 million, up 52.5% against last year’s comparable quarter, and a rise of 57.7% compared to Q1 2016. Sales in EMEA (excluding events) accounted for 38.0% of EVS’s revenue during the quarter.  This compares to 41.0% of total revenue during the second quarter of 2015 and 32.0% during first quarter of 2016.
  • Americas’ revenue for the second quarter of 2016 was €14.6 million, an increase of 107.8% versus the year-over-year period, and an increase of 38.5% compared to the preceding quarter. Americas accounted for 41.0% of total revenue during the quarter, up from 33.0% of total revenue during Q2 2015 and 39.0% in Q1 2016.
  • Q2 2016 revenue from the APAC region was €7.71 million, up 36.0% versus last year’s quarter, and a slight decline of 0.3% versus the preceding quarter. APAC accounted for 22.0% of total revenue in the Q2 2016, versus a contribution of 26.0% during Q2 2015 and 29.0% in Q1 2016.

 

Business Outlook:

As part of the earnings release, Management increased and narrowed revenue guidance for the full year.  Revenues for 2016 are now expected between €128 million and €138 million.

During EVS’s conference call, Managing Director & CEO Muriel De Lathouwer, offered commentary on the market environment.  “We see that the adoption of 4K and IP progressed across all geographies with more concrete discussions that we have now on those subjects with our customers. We are very happy with the order book and the evolution, but we still don’t want to have too much excitement as we know that part of the uptake of these new technologies will be included in the traditional lifecycle of upgrades.”

 

Related Content:

Press Release: EVS Q2 2016 Results

Presentation: EVS Q2 2016 Results

 

 

© Devoncroft Partners 2009-2016. All Rights Reserved.

 

 

Vizrt Grows Revenue 6.5% in Q2; Expects Further Growth in Second Half of 2016

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 22 2016

Vizrt announced results for the second quarter of 2016.  For the quarter Vizrt had revenue of $34.2 million, an increase of 6.5% versus the second quarter of 2015, and an increase of 21.2% versus the preceding quarter, Q1 2016. Vizrt Logo

Gross margins for Q2 2016 were 72.6%, which compares to 71.8% gross margins recorded during Q2 2015 and 70.4% gross margins from the preceding quarter.

Operating income for the quarter was $9.0 million, an increase of 56.6% compared to the second quarter of 2015, and an increase of 126.5% over the preceding quarter.  Operating margin for Q2 2016 was 26.4% versus 17.9% in Q2 2015 and 14.1% in Q1 2016.

Operating margins benefited from the decision to capitalize $1.7 million of research and development expenses in the quarter – and thereby exclude from operating expenses.  Vizrt had one-time expenses of $1.8 million in the quarter related to compensation to the Company’s former CEO, recruitment of the current CEO, and certain legal costs.

Net income for Q2 2016 was $11.0 million.  In the year-earlier period, Q2 2015, Vizrt recorded a net loss of $0.1 million, and in the preceding quarter net loss was $6.8 million.

Cash and cash equivalents ended the quarter at a balance of $37.2 million, up slightly from $36.6 million at the end of Q1 2016.

Revenue by Geography:

  • Revenues from EMEA for the quarter were $16.3 million, an increase of 3.8% in comparison to Q2 2015 and an increase of 27.3% against the preceding quarter. For Q2 2016 EMEA accounted for 48.0% of overall revenue, versus 49.0% in Q2 2015 and 45.0% in Q1 2016.
  • Revenues from the Americas region were $9.4 million during the second quarter of 2016, a year-over-year decrease of 3.7% and a sequential increase of 3.1%. Americas represented 27.0% of total revenue in the quarter, compared to 30.0% in Q2 2015 and 32.0% in Q1 2016.
  • Revenues from the Asia-Pacific geography during the second quarter of 2016 were $8.5 million, a 27.5% increase over Q2 2015, and an increase of 34.4% against Q1 2016. Asia-Pacific accounted for 25.0% of total sales in Q2 2016.  During the year-earlier period Asia-Pacific contributed 21.0% of sales and in Q1 2016 Asia-Pacific contributed 23.0% of total revenue.

Operating Expenses by Category:

  • Research and development (“R&D”) expenses in the quarter were $3.9 million, a 24.9% decrease versus the same period a year ago, and a decrease of 28.5% versus the previous quarter. In terms of total sales, R&D expenses represented 11.4% of revenue in the Q2 2016, compared to 17.0% in Q2 2015 and 19.3% in 19.3%. The decline in R&D expense is attributed to the accounting decision in the quarter to capitalize $1.7 million of R&D expenditure.  When including this capitalized portion of R&D, total R&D expenses were 16.4% of total sales.
  • Sales and marketing (“S&M”) expenses in the quarter were $7.39 million, a decrease of 6.8% against the year earlier period and an increase of 2.7% versus Q1 2016. S&M expenses were 21.6% of total sales in the quarter.  This compares to 24.7% in Q2 2015 and 25.5% in Q1 2016.
  • General and administrative (“G&A”) expenses in the quarter were $2.676 million, a decrease of 6.1% versus the same period a year ago, and a decrease of 7.5% versus the preceding quarter. As a percentage of sales, G&A expenses represented 7.8% of revenue in the quarter, versus 9.3% in Q2 2015 and 10.3% in Q1 2016.

 

Appointment of New CEO:

Announced on June 15, 2016, Vizrt appointed a new Chief Executive Officer, Michael Hallén.   Mr. Hallén replaces former CEO Martin Burkhalter, who retired after leading Vizrt for six years.

“I’m looking forward to working together with Vizrt’s world-class team to serve long term customers while capturing the new market opportunities that are being created in this fast changing industry,” said Mr. Hallén in the press release announcing his appointment.

Mr. Hallén assumed the responsibilities of CEO effective August 1, 2016.  Dr. Francois Laborie had served as action CEO through August 1, 2016 and will return to his role as COO of Vizrt.

 

Business Outlook:

Vizrt ended Q2 2016 with a total backlog of $56 million, a 4% year-over-year decline, and a sequential decrease of 1.1%.

Vizrt’s management provided the following commentary on the market environment, “In general, the market remains cautious with large infrastructure investments prioritized to meet future IP and 4K demands. However, we remain confident that the second half of 2016 will deliver growth for Vizrt as our backlog remains healthy and our customers understand the need to implement efficiency gains while reaching all their viewers regardless of the platform or of the method of consumption.”

 

Related Content: 

Press Release: Vizrt Q2 2016 Financial Results

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

2016 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research, Broadcast Vendor Brand Research, market research | Posted by Josh Stinehour
Jul 21 2016

The 2016 Big Broadcast Survey (BBS) Reports are now available.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its eighth year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participate in the BBS each year, making it the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2016 BBS to better align with recent market developments.

Select updates include the global tracking of IP Standard Adoption, a product level review of the 4K upgrade cycle, and planned usage of programmatic advertising exchanges.

The continual updates over the past eight years have helped the BBS reports remain a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2016 BBS reports are available:

  • 2016 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics
  • 2016 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 32 separate categories (see full list below)
  • 2016 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2016 BBS report, please call or email me.

As is Devoncroft’s custom, we will publish highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The below table of logos (in alphabetical order) lists the technology vendor brands covered in the 2016 BBS.

2016-BBS-Logos

 

Technology Product Categories & Vendor Brands Covered in the 2016 BBS, by Application Area

 

Acquisition & Production:

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red, Sony

Production Switchers

Blackmagic Design, For-A, Grass Valley, NewTek, Panasonic, Ross Video, SAM, Sony

Studio / System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production: 

Graphics & Branding

Adobe, Autodesk, Avid/Orad, ChyronHego, Evertz, Grass Valley, Imagine Communications, Ross Video, Vizrt

Video Editing

Adobe, Apple, Avid, Blackmagic Design, EVS, Grass Valley, Imagine Communications, Sony

 

 

Content Communications and Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Ross Video, SAM, Utah Scientific

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, SAM

Video Transport

Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Lawo, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, Hitachi, HPE, Isilon Systems/EMC, NetApp, Quantum

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

Production Servers

EVS, Grass Valley, Harmonic, Rohde & Schwarz, SAM

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia, Wide Orbit

Archive & Archive Management

Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

Media Asset Management

arvato/S4M, Avid, Dalet, EVS, Imagine Communications, Prime Focus Technologies, Vizrt, VSN

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

Workflow Orchestration / BPM

Aspera, Avid, Imagine Communications, IBM, Sony, Telestream

 

 

Playout and Delivery:

Encoding / Transcoding

Arris, ateme, Cisco, Dalet/AmberFin, Elemental Technologies, Ericsson, Harmonic, Imagine Communications, Telestream

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, SAM

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Neulion, Ooyala, Piksel

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

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.

.

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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2015 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research | Posted by Joe Zaller
Aug 04 2015

The 2015 Big Broadcast Survey (BBS) Reports have now been published and are available from Devoncroft Partners.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its seventh year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participated in the 2015 BBS, making it once again the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2015 BBS to better align with recent market developments.

These updates help ensure the BBS reports remains a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2015 BBS reports are available:

  • 2015 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics

 

  • 2015 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 30 separate categories (see full list below)

 

  • 2015 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2015 BBS report, please email us.

As is Devoncroft’s custom, we will publish selected highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The tables below list the  technology vendor brands and product categories covered in the 2015 BBS.

 

All Brands Covered in 2015 Big Broadcast Survey (BBS)


Product Categories Covered in the 2015 Big Broadcast Survey

Technology Products & Vendor Brands Covered in the 2015 BBS, by Application Area

 

Acquisition & Production:

Camera Lenses

Angenieux, Canon, Fujinon

 

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

 

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red Digital Cinema, Sony

 

Production Switchers

Blackmagic Design, Broadcast Pix, For-A, Grass Valley, NewTek, Panasonic, Ross Video, Snell, Sony

 

Studio/System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production:

 

Graphics & Branding

Adobe, Autodesk, Avid, ChyronHego, Evertz, Grass Valley, Imagine Communications, Orad, Pixel Power, Ross Video, Vizrt

 

Transcoding / Streaming

Dalet/AmberFin, Elemental Technologies, Envivio, Harmonic, Imagine Communications, Telestream

 

Video Editing

Adobe, Apple, Avid, EVS, Grass Valley, Imagine Communications, Sony

 

Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU, Vislink

 

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Nevion, Pesa, Ross Video, Snell, Utah Scientific

 

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, Snell

 

Video Transport

Arris, Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

 

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

 

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

 

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

 

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, HP, IBM, Isilon Systems/EMC, NetApp, Quantum

 

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

 

Production Servers

Avid, EVS, Grass Valley, Harmonic, Quantel

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia/Pilat Media, VSN, Wide Orbit

 

Archive & Archive Management

ASG/Atempo, Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

 

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

 

Workflow / Asset Management

arvato/S4M, Avid, Dalet/Amberfin, EVS, Imagine Communications, Sony, Vizrt, VSN

 

 

Playout and Delivery:

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, Snell, Thomson Video Networks

 

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Ooyala, Piksel

 

Transmission Encoders

Arris, ATEME, Cisco, Elemental Technologies, Envivio, Ericsson, Harmonic, Imagine Communications, Thomson Video Networks

 

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

 

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

 

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

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© Devoncroft Partners 2009 – 2015. 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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Ranking the Most Important Trends in the Broadcast Industry, Based on Commercial Importance to End-Users

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Sep 29 2014

This is the first 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.

 

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 2014 BBS, making it the most comprehensive study ever done in the broadcast industry.

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 to be the most commercially important to their businesses in any given year.

In order to ensure that the trends we measure each year in our research are the most relevant to the industry, 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 the input we received during the planning stages of the 2014 BBS project, it was decided that the following two trends should be added to the list of trends included in the composition of the 2014 BBS Broadcast Industry Global Trend Index:

  • 4K / UHD
  • Remote Production

 

The benefit of this change is that we were able to capture a significant amount of information about information about the perceptions of 4K/UHD and remote production, including deployment plans.

The downside of this approach is that the inclusion of new trends will almost certainly cannibalize the rankings of other trends in our Index. Therefore, it is slightly more complicated to make a 1:1 comparison of how trends were ranked in 2014 versus 2013 across different demographics.

 

The 2014 BBS Broadcast Industry Global Trend Index

To create the 2014 BBS Broadcast Industry Global Trend Index, we presented BBS respondents with a list of 18 industry trends and asked them to tell us which one trend they consider to be “most important” to their business, which one trend they consider to be “second most important” to their business, and which 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 table below shows the 2014 BBS Broadcast Industry Global Trend Index.

 

2014 Devoncroft BBS Broadcast Industry Global Trend Index

 

Keep in mind that this chart shows a measure of what people say is important to the future of their businesses, not what they are doing now, or where they are making money today.  These topics will be addressed in future posts.

Please note that this chart shows a weighted index, not a measure of the number of people who said which trend was most important to them.

Also, please note that this chart measures the responses of all non-vendors who participated in the 2014 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 free summary information.

The fact that multi-platform content delivery (MPCD) is considered by respondents to be the industry trend that is most important commercially to their business jumps off the page, and is perhaps not surprising, given the rise of on-demand video platforms, consumer mobility, and sales of smartphones and tablets.  Indeed, across multiple studies, research participants have repeatedly told us that multi-platform content delivery is the trend that is most commercially important 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 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 will be addressed in future posts, as well as on the Devoncroft website.

Although multi-platform content delivery is by far seen as the most important trend in 2014, there are quite a few other interesting things to consider in the above chart.

Since the first BBS Broadcast Industry Global Trend Index was published in 2009, “multi-platform content delivery,” “file-based / tapeless workflows,” “IP networking and content delivery” and transition to HDTV operations” have been the top ranked trends.  However their relative position has shifted dramatically.  For example, in 2009, the transition to HD operations was the #1 ranked trend globally, and MPCD was ranked #4.  In 2014, these were ranked #6 and #1 respectively.

For a number of years the transition to HDTV operations has been a major driver of end-user technology budgets, and therefore technology product sales. The HD transition continues to be and is likely to remain one of the strongest drivers of broadcast industry revenue, particularly in emerging markets, but has this year dropped to the #6 position on a global basis.

We provide significant coverage of the global transition to HDTV operations in the 2014 BBS Global Market Report (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 more than a dozen product categories including cameras, switchers, routers, servers, graphics, encoders, communication links, and encoders. 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.

Another trend that has become increasingly more important over the past several years is “IP networking & content delivery,” which is ranked as the #2 most important trend in the 2014 BBS Global Trend Index.

The move to IP-based infrastructure become increasingly important as broadcast technology buyers continue to look for efficiencies as they transition to new technical platforms and business models.  In 2014, the move to IP-based infrastructure took on a new sense of urgency as buyers began to seek ways to implement IP-based systems in broadcast operational environments.

With new standards (e.g. SMPTE 2020-6), new market entrants (e.g. Arista Networks), and a high-profile joint task force on networked media (JT-NM), sponsored by the EBU, SMPTE, and VSF; the move to IP not only looks more and more inevitable, it is also likely to be a major industry driver over the mid to long-term.  As a result, we believe that the coming move to IP (which is still at least a year or two away in practice) has profound implications for both broadcast technology buyers and suppliers.

The move to IP is driven by an ever-increasing desire for broadcast technology buyers to gain operational efficiencies.  We believe this trend is set to accelerate, and will continue to be a strong macro driver of the overall industry for the next several years, as broadcasters continue to deploy new workflows.

The trend ranked #3 in the 2014 BBS Global Trend Index, “file-based / tapeless workflows,” is another indication of the importance of increased efficiency for broadcast technology end-users.  This trend has accelerated as the transition to HDTV (ranked #6 this year) begins to wind down 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 2014, as broadcasters continue to deploy new workflows.

The trend ranked #4 in the 2014 BBS Global Trend Index is “4K / UHD.

2014 is the first year that we have included 4K / UHD as a component of the BBS Global Trend Index. It was added based on feedback from our clients, readers, and stakeholders.  The fact that 4K / UHD is ranked #4 in the first year of its inclusion in the Index demonstrates that these requests were well-founded.

Although 4K / UHD is still in its early phases of deployment, many in the industry see it as the next major driver of infrastructure upgrades – similar to the transition to HD a decade ago.

While there is no doubt that 4K / UHD is a very important developments, we are skeptical that it will have the same 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 and archive (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 for this is that it is still complex and expensive to create an entire live event in 4K/UHD, compared to today’s HD broadcast.  Uncompressed 4K/UHD requires real-time processing at 12 Gbps, and the full production chain is not yet widely available.  Another critical issue is that 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.

Nevertheless, there’s no doubt that 4K/UHD is driving strong interest and excitement in the industry.  However, it remains to be seen whether it will become a mainstream technology driver as HD has been, or whether it will go the way of 3D production, which caused huge excitement in 2010 before being relegated to near-non-existence just a few years later.

Cloud computing / cloud based services,” is the #5 ranked trend (maintaining the same position as in 2013).

It seems that you can’t read anything about technology these days (broadcast or otherwise) without coming across some mention of “the cloud.”  So why is something that is apparently so important to so many people not ranked higher?

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 quarters in 2014, but this year our research shows that while there continues to be skepticism about the cloud (not to mention security concerns), the acceptance of (or at least the willingness to consider) cloud technology and services increased rapidly in 2014.

Indeed the Devoncroft 2014 BBS Global Market Report shows that Cloud Services / Cloud Technology is one of the fastest growing areas of project spending in the broadcast industry in 2014. This (paid) 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.

For example, data from the Devoncroft 2014 BBS Global Market Report shows that Cloud Services / Cloud Technology has become one of the fastest growing areas of project spending in the broadcast industry this year.

Significantly 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.

The #6 ranked trend in the 2014 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 2014 BBS respondents report that it is declining in terms of future commercial importance to their organizations.  In 2014, 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 2014 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 is the first year that the total penetration of HDTV infrastructure has surpassed the 50% market 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?

A review of the 2014 BBS Broadcast Industry Global Trend Index seems to indicate the answer lies in products and services that facilitate increased operational efficiency, and new revenue streams.

“Improvements in compression efficiency,” which is ranked #7 in the 2014 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, aka HEVC compression technology holds the promise of further reducing the bandwidth required to deliver high quality images, particularly for 4K/UHD channels.  However, it’s still early days for HEVC, and widespread deployments are still a year or two away.  Nevertheless, it’s clear that for many end-users of broadcast technology, HEVC could be a game-changer.

In addition to creating greater efficiencies, end-users are also looking for ways to increase their revenue in an environment where the economic model of the industry is changing dramatically.  Thus “video-on-demand,” which is ranked #8 in the 2014 BBS Broadcast Industry Global Trend Index, will continue to be a strong driver for content owners, media companies and broadcasters.  The combination of MPCD, better compression technology, and an ever-increasing channel count, will continue to push video on demand deployment, whether via traditional broadcast and pay TV platforms, or over the internet or mobile networks.

The “move to automated workflows” is ranked #9 in the 2014 BBS Broadcast Industry Global Trend Index

Better compression technology and lower cost integrated playout platforms (aka “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 through the monetization of the new automated channels that are coming on-line has driven a significant increase in focus on content monetization via “targeted advertising,” which is ranked #10 in the 2014 BBS Broadcast Industry Global Trend Index.

“Remote production,” which is ranked #11 in 2014 BBS Broadcast Industry Global Trend Index is another trend that is all about efficiency.  Through the use of remote production, broadcasters can lower their costs of producing live events, whether they are as small as a local soccer match or as large as the World Cup.

Similarly, broadcasters and media companies can achieve enormous cost-savings through the trend ranked #12 in the 2014 BBS Broadcast Industry Global Trend Index, “centralizing operations,” including playout and transmission

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 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. 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 2014 BBS data set. For more information about this report, please contact Devoncroft Partners

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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)

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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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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