Posts Tagged ‘broadcst cloud technology’

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, content delivery, market research, technology trends | Posted by Joe Zaller
Apr 09 2012

This is the second in a series of articles about some of the findings from the 2012 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 2012 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

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In a recent post about broadcast industry trends, we published the 2012 BBS Broadcast Industry Global Trend Index, which shows the most important trends in the broadcast industry for 2012. 

This article looks at how trends have changed over time, and more specifically what trends became more important or less important in 2012 versus 2011.

Our view is that industry trends drive capital projects, which in turn drives technology budgets, which in turn drives product purchase.  In other words, what technology buyers say is commercially important to their business in the future (i.e. trends) will likely turn into what they are budgeting for tomorrow (i.e. projects).

Therefore it’s useful to review how the relative importance of broadcast industry trends has changed over time, because it provides a preview of where technology purchases will be made in the future. 

 

  • In 2009, the BBS Broadcast Industry Global Trend Index was dominated by the Transition to HDTV Operations, while multi-platform content delivery was fourth on the list

 

  • In 2010, multi-platform content delivery had become the most important industry trend, narrowly eclipsing file-based / tapeless workflows (which were combined in the 2010 index) and the transition to HDTV operations

 

  • In 2011 multi-platform content delivery became the dominant trend, where it remains in 2012

 


The chart below shows a comparison of the BBS Broadcast Industry Global Trend Index from 2011 and 2012. 

 

 

This chart shows that multi-platform content delivery continues to increase in overall importance relative to other trends in the broadcast industry.  Other net gainers in 2012 versus 2011 include file-based / tapeless workflows, the move to automated workflows, video-on-demand and improvements video compression efficiencies; all of which show year-over year increases in the Index ranking.

Both transition to HDTV operations and IP networking & content delivery declined in the 2012 BBS Broadcast Industry Global Trend Index, but stayed in the top four (where they have been since the inception of the Index in 2009).  Other notable decliners in 2012 versus 2011 were “transition to 3Gbps operations”, and “3D,” which saw the largest year-over-year decline on a percentage basis.

It should also be noted that the relatively strong showing of “cloud computing / cloud-based services” which was added to the Index in 2012, undoubtedly had a cannibalizing impact on these results.


To provide additional context on how the importance of technology trends in the broadcast industry changes over time, we have included a comparison of the BBS Broadcast Industry Global Trend Index from 2010 – 2012.

 

 

When reading this chart, please bear in mind that in each of the previous two years, one additional trend was added to the Index.  In 2011, analog switch-off was added.  In 2012 cloud computing / cloud-based services was added. 

New trends are added when appropriate (and based on stakeholder feedback), in order to keep the Index current and relevant to the needs of users.  However as discussed in a previous section, this can make it more difficult to perform year-over-year data analysis.  Thus we are providing as much information as possible in this report in order to enable readers to undertake an informed analysis.

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Changes in Numerical Ranking in the BBS Broadcast Industry Global Trend Index

As shown below, there were some interesting changes in the numerical ranking of the trends covered in the 2012 Index.  The first column in the table below shows how trends were ranked in 2012. The number in parentheses to the right of each trend shows how it ranked in the 2011 BBS Index. Although there were no changes at the top and bottom of the 2012 Index versus the 2011 Index, there was movement in between.

 

 

Several trends were ranked more highly in 2012 than in 2011.  For example the transition to file-based / tapeless workflows moved up one spot to the #2 ranking (eclipsing the transition to HDTV operations for the first time in the Index), and the move to automated workflows also moved up.  

The combination of the strength of multi-platform content delivery, the strong showing of cloud computing, and the increasing importance of file-based workflows and automated operations has significant implications.  Broadcast technology buyers are clearly focused on creating efficiencies wherever possible, while at the same time working to generate new revenue streams through multi-screen offerings.

A number of trends dropped in the Index versus previous years, the most notable being 3D which had the largest year-over-year percentage drop.

Other trends remained relatively static in terms of their ranking in 2011.  For example: “transition to 3Gbps operations,” “transition to 5.1 channel audio,” “outsourced operations,” and “green initiatives” remained the bottom four trends in 2011, as they were in 2012.  However the addition of cloud computing, which ranked #7 in the Index dropped each of these trends down one position.

 

Changes in Commercial Importance of Broadcast Industry Trends

As well as changes to numerical ranking, there were also year-over-year changes to the perception of commercial importance to each trend.  This is shown in the table below:

 

 

For the most part, the trends that moved up in the rankings in 2012 were also seen as more important commercially versus the previous year. 

The common theme among the items on the left side of the above chart is that they all have to do with creating new revenue streams, or cutting costs through greater efficiencies.  Analog switch-off is perhaps the odd one out here, but given that these projects are mandated by governments, they become increasingly important where relevant until the time that these projects have ended.

The items on the right of the above chart are a mixed bag.  As a generalization it’s safe to say that that many of these trends involve spending rather than saving money.  Given that much of the industry is still recovering from recession, extra spending is not a popular choice in the current business environment.

 

Why Tracking Movement of Trends is Important

It is important to note that there is a difference between recognizing that a trend is commercially important and having a business plan in place that capitalizes on that trend.  As stated previously, our view is that industry trends drive capital projects, which in turn drive technology budgets, which in turn drive product purchase.  In other words, what technology buyers say is commercially important to their business in the future (i.e. trends) will likely turn into what they are budgeting for tomorrow (i.e. projects).

For example, the 2012 BBS Trend Index shows that monetizing content on multiple platforms is clearly a key objective for broadcast professionals in the year ahead, yet many players, particularly on the content side, are still experimenting with their business models. At some point these trends will drive capital projects.  When that happens they will become major drivers of technology spending in the broadcast industry. 

We will review what major capital projects are being planned this year in the broadcast industry in a subsequent article.

 

Keep in mind when reading this information that all data in this article measures the responses of all non-vendor participants in the 2012 BBS, regardless of organization type, organization size, job title or geographic location. Responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of the full 2012 BBS Global Market Report. For more information about this report, please contact Devoncroft Partners.

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Related Content:

The 2012 Big Broadcast Survey – Information and available reports

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. All Rights Reserved.

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Largest-Ever Study of Broadcast Market Reveals Top Industry Trends of 2012

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research, technology trends | Posted by Joe Zaller
Apr 05 2012

This is the first in a series of articles about some of the findings from the 2012 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 2012 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

 

The 2012 BBS Broadcast Industry Global Trend Index

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 2012 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.

 

Changes to the Trends Measured In 2012

This is the fourth annual BBS study, and a lot has changed in the broadcast industry since we started in 2009.   In order to ensure that the trends we measure in the BBS are the most relevant to the industry we spend a consider amount of time each year seeking feedback about the structure of our reports from a wide variety of industry professionals including broadcasters, broadcast service providers, technology vendors and consultants.

Based on industry feedback, we added a 16th trend to our list this year: “cloud computing / cloud services.”  In 2011, we added “analog switch-off.”

Adding extra trends to the list we measure enables us to make sure that we are keeping our market studies up to date by tracking the most relevant issues facing the industry.

The trade-off is that by adding a new list to the trends we measure makes it more difficult to do a year-over-year comparison of these trends and how they have changed in priority over time.  Nevertheless we felt that the increasing importance of cloud-based technologies, services and business models was such that it warranted inclusion in our 2012 study.  Please note that the addition of cloud computing / cloud services likely “cannibalized” a small percentage of responses from other trends in this year’s ranking.

 

The Top Broadcast Industry Trends in 2012

To create the 2012 BBS Broadcast Industry Global Trend Index, we presented BBS respondents with a list of 16 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.”

In order to create the BBS Broadcast Industry Global Trend Index, we then apply a statistical weighting to these results, which is based on the commercial importance of each trend we measure.

Please note that our goal from this question is to help clients gain insight into the business drivers behind the respondent’s answer. Therefore, we asked this question in the context of commercial importance, rather than “industry buzz” or technology hype.

The table below shows the 2012 BBS Broadcast Industry Global Trend Index. Please note that this chart shows a weighted index, not measure the number of people that said which trend was most important to them.  Also please note that this chart measures the responses all non-vendors who participated in the 2012 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.

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In 2012, multi-platform content delivery is clearly the dominant trend as broadcasters and content owners continue to refine their business models for the generation of new revenue streams through the monetization of video and audio assets. At the same time, technology vendors are continuing to develop solutions to repurpose content for optimal performance on any platform, and to run targeted ads alongside that content.

It’s interesting to note that since the first BBS was published in 2009, “multi-platform content delivery,” “transition to HDTV operations,” file-based / tapeless workflows,” and “IP networking and content delivery” have been at the top of the BBS Broadcast Industry Global Trends Index.  However their relative position has shifted dramatically, with  “multi-platform content delivery” becoming increasingly important over the past four years (it was the number four trend in 2009, well behind that year’s top trend: transition to HDTV operations).

Although multi-platform content delivery is the headline in 2012, there are quite a few other interesting things to consider in the above chart.

For a number of years the transition to file-based workflows and the transition to HDTV operations have been major revenue drivers in the broadcast industry, and it appears that this will continue to be the case in 2012.  While there’s no doubt that these trends have been increasingly eclipsed by multi-platform content delivery, the key question is whether this translates into decreased capital expenditure for these projects.

We provide significant coverage of the global transition to file-based workflows and HDTV operations in the 2012 BBS Global Market Report (a paid for report). This includes a breakdown of where broadcasters are in their transition to HD, and a look at the upgrade plans for more than a dozen product categories. We’ll also be publishing more information here about project-based spending and the HD transition in future articles.

While on the topic of file-based workflows and the HD transition, it’s interesting to note that 2012 is the first year that the transition to file-based workflows has ranked higher than the transition to HDTV operations.   This is presumably due to the fact that many broadcasters have a firm grasp on their transition to HDTV – they understand what’s needed and how to achieve a smooth transition even if they have not made the move to HD yet.  This and the strong showing of “IP networking & content delivery” show that 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 2012, as broadcasters continue to deploy new workflows.

The increasing importance of file-based technologies has implications for the broadcast industry in terms of both workflows and product procurement. Our previous research shows that broadcasters are moving to file-based workflows not only to achieve greater speed and efficiencies, but also to reduce cost. During the recession, technology budgets were typically prioritized towards solutions that add revenue and/or reduce cost. Now that the industry is recovering from the downturn, it’s likely that the way technology is purchased will remain focused on these commercial priorities.  For example the trend “move to automated workflows” ranked higher in 2012 than in previous years, further supporting the thesis that efficiency is an increasing priority for broadcast technology buyers.   We have recently completed several research projects for the IABM (the trade group that represents media technology suppliers worldwide), which provide more information on this topic.  These reports are available to IABM member companies through the IABM’s market intelligence portal as a benefit of IABM membership (disclaimer: I have a commercial relationship with the IABM).

As mentioned previously, “cloud computing / cloud based services” was added to the list of trends we measured in 2012.  It seems that you can’t read anything about technology these days (broadcast or otherwise) without coming across some mention of “the cloud.”  So it’s interesting to note that cloud technology is ranked #7 in the 2012 BBS Broadcast Industry Global Trends Index.  Why is something so important to so many people in the middle of the pack?  This is probably because there is still a lack of understanding widespread understanding about exactly how the cloud will impact the business models of broadcast technology buyers.  Nevertheless, it has made a strong showing this year, ahead of another previously much-hyped technology, 3D, which ranked #8 in 2011 and fell to #10 in 2012.

The rankings “improvements in video compression efficiency” and “video-on-demand” were static versus the previous year, while targeted advertising and 3D dropped several places each versus the previous year.

As with previous years, the bottom four trends were: “transition to 3Gbps operations”, “transition to 5.1 channel audio”, “outsourced operations” and “green initiatives”.

We’ll take a more in-depth look at the year-over-year changes in a subsequent post.

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Keep in mind when reading this information that all data in this article measures the responses of all non-vendor participants in the 2012 BBS, regardless of organization type, organization size, job title or geographic location. Responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of the full 2012 BBS Global Market Report. For more information about this report, please contact Devoncroft Partners.

 

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Related Content:

The 2012 Big Broadcast Survey – Information and available reports

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. All Rights Reserved.

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