Posts Tagged ‘centralized broadcast operations’

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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Business Model Questions Linger As Broadcasters Shutter 3D Offerings in Favor of Multi-Screen Services

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Jul 05 2013

Earlier this week the BBC announced that it will broadcast select matches from the Wimbledon Championships in 3D this year.  At that time, Kim Shillinglaw, Head of BBC 3D, said: “We’re delighted to provide live 3D coverage from the biggest matches of this year’s Wimbledon. Major UK sporting events are a big part of our trials with 3D content and this allows us to build on our work from previous Wimbledon Championships and the London 2012 Olympics.”

Now, Broadband TV News reports that the BBC is taking “a three-year holiday from the development of 3D programming with the corporation’s head of 3D admitting the UK public had not taken to the format.”

Broadband TV News quotes the BBC’s Shillinglaw saying “Watching 3D is quite a hassly experience in the home. You have got to find your glasses before switching on the TV. I think when people watch TV they concentrate in a different way. When people go to the cinema they go and are used to doing one thing – I think that’s one of the reasons that take up of 3DTV has been disappointing.”

Shillinglaw’s sentiments echo the statement made by ESPN last month and first reported by the Sports Video Group (SVG) that the leading US sports network was discontinuing its ESPN 3D service “due to limited viewer adoption of 3D services to the home.” ESPN went on to say that it plans on committing the resources currently assigned to 3D production to “other products and services that will better serve fans and affiliates,” specifically citing 4K (UHDTV) as an example.

At the time of the ESPN announcement, SVG said that the discontinuation of ESPN 3D raises serious questions regarding the future of 3D sports programming in the U.S. While Europe — especially the UK — has seen continued interest in live 3D sports, American consumers failed to adopt the format at a high rate.” The BBC’s announcement implies that UK consumer appetite for 3D is as lukewarm as it has been in North America, making it impractical for even a publicly funded broadcaster to continue with the format.

A remaining piece of the 3D puzzle is the 2014 FIFA World Cup, which will probably be the most watch global event of the year.  According to SVG, HBS (Host Broadcast Services), which will produce the world feed for the 2014 World Cup in Brazil, has yet to confirm whether the tournament will be produced in 3D.

 

Research Shows Commercial Importance of 3D Down, Multi-Screen Up

These announcements from BBC and ESPN are consistent with the findings of the Big Broadcast Survey (BBS), our annual study of the global broadcast industry.  In particular, the 2013 BBS Broadcast Industry Global Trend Index, reveals that multi-platform content delivery is once again the top industry trend for broadcast technology end-users worldwide, while 3D lags far behind in terms of its commercial importance to broadcast professionals.

Not only have research participants consistently told us that 3D lags other industry trends in terms of its commercial importance to their businesses, we’ve also found that 3D has become increasingly less important each year for the past several years.

For example, the chart bellows shows the chart below shows a comparison of the BBS Broadcast Industry Global Trend Index from 2012 and 2013.  It measures changes in how end-users ranked the commercial importance of industry trends on a year-over-year basis.

 

2013 BBS -- 2013 BBS Broadcast Industry Global Trend Index -- Red Box Around 3D (small)

 

Note that in this chart, 3D had the largest reported year-over-year percentage decline in commercial in both between 2012 and 2013.  This was also the case last year.

However, the above chart also demonstrates that while interest in 3D has waned, multi-platform content delivery is and continues to be the dominant trend in the broadcast industry, with more research participants citing it than any other trend as being most important commercially to their business.

The BBS’s plans for Wimbledon are further evidence of this.  The broadcaster said that it will make coverage of the tournament available on an increasing number of platforms, including ten live streams that will be available to PCs, mobiles, tablets and connected TVs.  The BBC will also offer three streams for “Red Button” for viewers on cable and satellite and Digital Terrestrial TV.

 

What about the business model?

Our research, as well as studies from many other firms, leaves no doubt that the popularity of multi-screen services in increasing.

However, it’s another matter to create a commercially successful business model in an environment where audiences are fragmenting, additional content preparation costs are required, and bandwidth providers charge steep fees for unicast delivery of video stream to consumers.

Delivering multi-screen services to consumers is a relatively straightforward process from a technical perspective. Monetizing content on multiple platforms, devices, and use cases is a different matter.

For example, in March 2013 Broadcasting and Cable magazine reported that one panelist at Next TV Conference said that multi-platform content monetization is still a ‘train wreck,’ although other did express “great optimism about the leaps technology will take in coming years.”

In our conversations with broadcasters, Devoncroft analysts have found that many broadcasters and media companies are indeed finding it a challenge to create a sustainable multi-screen business model with a margin profile similar to their traditional business.

The issue is that the shift to multi-platform has dramatically altered the economic model of the TV business. There are a number of reasons and examples why this is the case, but the end-result is that many broadcasters and media companies feel that in order to thrive in this new environment, they must radically change their cost structure.

The resulting decision these organizations will take will have significant implications for content owners, broadcasters, and technology vendors.

We’ll be addressing some of these in future posts on this website.
Some of the information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location. Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

Broadband TV News: BBC puts 3D development on hold

BBC Press Release: BBC confirms 3D coverage plans for Wimbledon

Sports Video Group: ESPN To Discontinue ESPN 3D by Year’s End  

Broadcasting & Cable: Monetization Still a ‘Train Wreck,’ But Shows Signs of Clearing

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, Quarterly Results | Posted by Joe Zaller
Jul 03 2013

This is the fourth in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, and where money is currently being spent in the broadcast industry.

This article expands on the findings of the 2013 BBS Broadcast Industry Global Project Index by drilling down into the specific product categories that are being evaluated for purchase this year by our global sample of nearly 10,000 broadcast technology end-users in 100+ countries.

We presented research participant with a list of relevant product categories and asked to indicate which ones they are currently evaluating for purchase.

The results are shown in the chart below.

 

2013 BBS -- Product Being Evaluated for Purchase

 

In 2013 it is likely that production technology – such as video editing systems, camera-related products, and audio technology – will be in demand as broadcast professionals continue to upgrade their facilities to HDTV operations.

The new studios, OB vans, and channels that broadcasters have planned and budgeted for will drive the evaluation and purchase of a wide variety of equipment including studio cameras, production switchers, multiviewers, automation, storage, and transmission encoders. As always, test & measurement products will be required for these new facilities.

Strong interest in multi-platform content delivery is driving interest in products and services such as ingest/ streaming/ transcoding and online video delivery platforms.

The ongoing transition to file-based/tapeless workflows will drive the evaluation and purchase of products such as near-line/off-line/archival storage, production servers, and playout automation.

All of the above will likely benefit software-oriented systems such as workflow / asset management, library/storage management, and broadcast business management systems. These products help broadcast technology increase their operational efficiency by facilitating content storage & search; linear and multi-platform playout & distribution; and of course monetization.

 

The information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

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© Devoncroft Partners. All Rights Reserved.

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Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Jul 01 2013

This is the third in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

In a previous article, we published the 2013 BBS Broadcast Industry Global Trend Index, which shows how a global sample of nearly 10,000 broadcast professionals ranked a set of broadcast industry trends in terms of the commercial importance of each one to their business.

This was followed by a post called Tracking the Evolution of Broadcast Industry Trends 2012 – 2013, which examined how the relative commercial importance of broadcast industry trends have changed over time.

Rather than looking at industry trends, which are often an indicator of what might happen in the future, this article examines what technology products and services are actually being purchased today by broadcasters and media companies globally.

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The 2013 BBS Broadcast Industry Global Trend Index (which can be found here) showed that the top-ranked broadcast industry trend in 2013 is “multi-platform content delivery.”  Other important trends include “file-based workflows,” “IP networking and content delivery,” and the “transition to HDTV operations.”

The 2013 BBS Trend Index includes a mix of current and future commercial priorities, some of which have already been widely deployed, on a wide scale, some of which are currently being trialed, and others which have not yet been widely implemented. Industry trends evolve and change over time, so tracking this evolution is helpful to better understand what customers are discussing and thinking about implementing in the future.

However, a top ranking in an industry trend Index does not necessarily translate into where broadcast technology buyers are actually spending their budgets in 2013 and 2014. Therefore, it’s important to make a clear distinction between what broadcast customers are thinking and talking about doing in the future (trends), and where they are spending their technology budgets today (projects).

Technology spending in the broadcast industry is typically project-based. Real (budgeted) projects are where broadcast technology budgets are being spent today, not just what people are talking about doing in the future.

Capital projects come in many forms.  They might include international elections, sporting championships, new services designed to attract incremental revenue, and the long-term planned capital upgrades of broadcast infrastructure and facilities.

In order to better understand this dynamic, we presented 2013 BBS participants with a list of 18 projects (determined based on feedback of BBS stakeholders), and asked them to indicate which of these projects they are currently in the process of implementing or have budgeted to implement within the next year.

Unlike industry trend data, which highlights what respondents are thinking/talking about doing in the future, this information provides direct feedback about what major capital projects are being implemented by broadcast technology end-users around the world, and provides useful insight into the capital expenditure plans of the industry.

Taken together, information about trends and projects collected in the 2013 BBS can be used to understand the difference between “trend and spend,” and/or hype and reality.

 

The 2013 BBS Broadcast Industry Global Project Index, shown below, measures the number of projects that research participants are currently implementing or have budgeted to implement.

2013 BBS -- 2013 BBS Broadcast Industry Global Project Index

 

Comparing the above chart with the 2013 BBS Broadcast Industry Global Trend Index illustrates the difference between what end-users are thinking and talking about (trends), and where they are actually planning to spend their budgets today (projects).

While “multi-platform content delivery” was this year’s top-ranked trend, when it comes to where money is actually being spent in 2013, more broadcast technology buyers said that they have budgeted for “upgrading infrastructure for HD/ 3Gbps operations” than any other project.

This finding is consistent with our previous research. Upgrading infrastructure for HD / 3Gbps operations has consistently been the top driver of broadcast technology spending for the past several years, and this is once again the case in 2013.

This year’s top project correlates directly with “transition to HDTV operations,” which was ranked #4 in the 2013 BBS Broadcast Industry Global Trend Index.

The projects ranked #3, #4, #5, #7, #9, and #12 in the 2013 BBS Broadcast Industry Global Project Index – “upgrading cameras,” “upgrading transmission & distribution capabilities;” “building new studios / OB vans;” “launching new channels;” and “upgrading newsroom operations” – are also related to the transition to HDTV operations. These new cameras, transmission upgrades, new studios, new channels, and upgraded news environments will almost certainly be at least HD capable, if not fully HD.

In some cases, industry trends and budgeted projects line up nicely. In others however, there are significant differences.

A good example of the latter is “multi-platform content delivery,” which has been the top-ranked trend in the BBS Broadcast Industry Global Trend Index since 2010, and dominated the Index this year.  However, the corresponding project measured in the chart above, “distribute and monetize content on multiple distribution platforms,” ranked #10 out of 18 in the 2013 BBS Broadcast Industry Global Project Index, significantly below items ranked much lower in the BBS Trend Index.

These findings are consistent with previous BBS studies, as well as our other research in the professional broadcast technology marketplace.

Despite strong interest in multi-platform content delivery, it appears that creating a sustainable (and profitable) business model for distributing and monetizing content on multiple digital distribution platforms has proven elusive to date for both end-users and technology vendors.

We have conducted numerous projects about multi-platform business models that involved interviewing senior executives from broadcasters and media companies. Although these executives immediately agree that getting to “multi-platform nirvana” is strategically important to their organizations, many readily admit that they have yet to find the right business model.

Many broadcasters and content owners believe that in order to achieve increased revenue and profitability in a multi-platform world, they must first dramatically increase their efficiency through the implementation of new workflows and technical systems, some of which do not yet exist.

This implies that there are likely to be significant opportunities in the future for broadcast technology vendors that are able to solve the technical, operational, and business challenges facing end-users who see multi-platform distribution and monetization as a critical part of their business strategy.

It also helps explain why “file-based/tapeless workflows” was ranked #2 in the 2013 BBS Trend Index, with many research participants saying it is the industry trend that is most important commercially to their businesses over the next few years.

Indeed, a number of capital projects are being implemented in 2013-14 are directly related to “file-based/tapeless workflows” trend. Examples of this are “cloud technology/cloud services,” “workflow / asset-management,” “archive-related projects,’ and “automating workflows.”

In particular, the #2 ranked project in 2013 — “install or enhance workflow / asset management system” – is an area where there has been a great deal of recent activity. Although it may seem that MAM has been set to become “the next big thing” for the past decade or so, it now appears that broadcasters are increasingly focusing on MAM deployments.

One reason for this could be that many end-users believe that in order to be profitable in a multi-platform world, they must significantly increase the efficiency of their operations, and broader use of MAM is seen as one part of solution.

Indeed, in a recent Devoncroft project, more than half of the senior executives from broadcasters and media companies we interviewed cited multi-platform content distribution as the factor that will drive the most change in their organizations over the next few years; and because of this, more than two-thirds predicted their spending on MAM and workflow tools will increase over the next two years.

The remainder of the 2013 BBS Broadcast Industry Global Project Index offers a mixed picture of project activity across the world, and includes everything from upgrading audio and newsrooms to migrating infrastructure from copper to fiber.

And as seen in the 2013 BBS Trend Index, some projects are being planned as the direct result of government or corporate mandates. “Prepare for analog switch-off” is the best example of this.  In the territories where governments have mandated a switch to digital broadcasting, tremendous planning and focus is being devoted to these projects, resulting in strong revenue for transmission and distribution-related products and services.

Interestingly, despite the fact that they may have the potential to deliver increased efficiencies and new revenue streams, some very large projects appear towards the bottom of this list. For example, “consolidate operations in regional hubs (centralcasting),” and “outsourced operations (playout),” are the bottom ranked projects in 2013. This is because although these are high value projects, they will be undertaken by a relatively small number of organizations — i.e. large broadcasters.  This highlights that the 2013 BBS Broadcast Industry Global Project Index is a graphic representation of the number of all planned projects across all respondents, regardless of organization type, size, or location.  It does not measure size, value, or relative commercial importance of planned projects.  Please keep this in mind when reading this information and interpreting these findings.

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The information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Previous Year: The 2012 BBS Broadcast Industry Global Project Index

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© Devoncroft Partners. All Rights Reserved.

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Tracking Changes in the Commercial Importance of Broadcast Industry Trends, 2012 – 2013

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Jun 26 2013

This is the second in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

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In a previous article, we published the 2013 BBS Broadcast Industry Global Trend Index, which shows how a global sample of nearly 10,000 broadcast professionals ranked a set of broadcast industry trends in terms of the commercial importance of each one to their business.

This article compares how the relative commercial importance of these trends has changed over time, and looks specifically at what trends were ranked higher or lower in terms of commercial importance in 2013 versus 2012 by our global panel of research participants.

 

Why Tracking Movement of Trends is Important

Understanding changes in how technology buyers rank the relative commercial importance of industry trends provides important insight into what might be next for the industry.

Whereas it’s tempting to use historical sales data to try to determine what factors will drive industry CapEx in the future, it’s actually quite difficult to use the relative performance of a technology vendor in the past as predictor of the behavior of technology buyers in the future.

Broadcast industry CapEx tends to be project-based. Expenditure is typically contemplated based on business needs, and then deployed according to available resources. And yet, technology buyers must always be cognizant of a wide variety of factors, including technology evolution, business risk/reward, and even government intervention.

Changes to end-user rankings of the commercial importance of trends can be used to predict where technology expenditure may be headed in the future.

This is because 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.”  “Multi-platform content delivery” was ranked #4 on this list.

 

  • The following year, 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.”

 

  • By 2011, multi-platform content delivery began to dominant trend in the BBS Broadcast Industry Global Trend Index, ranking significantly higher than all other industry trends.  Analog-switch-off was added to the Index in 2011.

 

  •  Last year (2012) multi-platform content delivery continued to dominate the BBS Broadcast Industry Global Trend Index, and file-based workflows surpassed transition to HDTV operations for the first time.  Cloud computing/cloud-based services was added to the Index in 2012.

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The 2013 BBS Broadcast Industry Global Trend Index

To create the 2013 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.”

We then apply a statistical weighting to these results, based on how research participants ranked the commercial importance of each trend, and use this information to create the BBS Broadcast Industry Global Trend Index, which is shown below.

2013 BBS -- 2013 BBS Broadcast Industry Global Trend Index

 

In 2013, “multi-platform content delivery” was ranked by research participants as being the most important industry trend – by an order of magnitude versus other trends included in the 2013 Index.  More information about the 2013 BBS Broadcast Industry Global Trend Index can be found here.

In the context of this article, it should be noted that trends included in the 2013 BBS Broadcast Industry Global Trend Index have not changed from the previous year.

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 this input, it was decided not to make any changes to the composition of the 2013 BBS Broadcast Industry Global Trend Index. The benefit of this is that it’s easy to make a 1:1 comparison of how trends were ranked in 2013 versus 2012.  The downside is that some emerging trends such as 4K, bonded cellular, HEVC encoding, social TV etc., were not included in the 2013 Index.   However, these issues (and more) were included in other parts of the 2013 BBS, and there is a significant amount of available data on these subjects within various 2013 BBS reports.

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Comparing the Commercial Importance of Broadcast Industry Trends in 2013 Versus 2012 

The chart below shows a comparison of the BBS Broadcast Industry Global Trend Index from 2012 and 2013.  It measures changes in how end-users ranked the commercial importance of industry trends on a year-over-year basis.

 2013 BBS -- Comparison of 2012 and 2013 BBS Broadcast Industry Global Trend Index (white background)

 

MPCD, file-based/tapeless workflows, IP networking & content delivery, and the transition to HD operations have occupied the top four positions in the BBS Global Trend Index since its inception in 2009, although it is interesting to note there has been considerable movement in their position in the actual rankings.

While multi-platform content delivery (MPCD), was once again the top-ranked trend in 2013, it did decline slightly on a year-on-year basis versus the rest of the Index. Nevertheless, MPCD was ranked considerably higher in 2013 than any other trend, which was also the case in 2012.

 

Leaving aside the numerical rankings for the moment, other observable changes in the relative commercial importance of broadcast industry trends between 2012 and 2013 include:

  • Y-Y increases in the relative importance of “IP networking & content delivery,” “improvements in video compression efficiency,” “cloud computing/cloud-based services,” “move to automated workflows,”  “centralized operations,” “transition to 5.1 channel audio,” “outsourced operations,” and “green initiatives.”

 

  • Y-Y decreases in the relative importance “multi-platform content delivery,” “file-based/tapeless workflows,” “transition to HDTV operations,” “video on demand,” “targeted advertising,” “analog switch-off,” and “3D-TV”

 

Some of these changes are subtle, and do not necessarily imply that the relative importance of the trends have changed over time.  However, other movements in the Index do indeed impact the actual numerical position of each trend within the ranking.

 

 

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 in the 2013 Index versus the 2012 Index.

The column on the left of the table below shows the numerical rankings of trends in 2013. The number in parentheses to the right of each trend shows how it ranked in the 2012 BBS Index. Although there were no changes at the top and bottom of the 2013 Index versus the 2012 Index, there was movement in between.

2013 BBS -- Numerical Ranking Changes -  2012 and 2013 BBS Broadcast Industry Global Trend Index

 

 

Several trends were ranked more highly in 2013 than in 2012.  For example, IP networking & content delivery moved up one spot to the #3 ranking (eclipsing the transition to HDTV operations for the first time in the Index).

Other net gainers in numerical rankings include IP networking & content delivery, cloud computing/cloud-based services, centralized operations, transition to 3Gbps (1080p) operations, and transition to 5.1 channel audio; all of which show year-over year increases in the Index ranking.

Net decliners in 2013 versus 2012 include the transition to HDTV operations, video on demand, analog switch-off, and 3D-TV, which had the largest year-over-year percentage drop.

The table below provides a consolidated view of the relative movement in numerical rankings of broadcast industry trends between 2012 and 2013.

 

2013 BBS -- Chages of Relative Imporance of 2012 versus 2013 BBS Broadcast Industry Global Trend Index

 

So what does this all mean?

On a global basis, the strong showing of “file-based workflows,” coupled with a y-y decline in the commercial importance of the “transition to HDTV operations” implies that those broadcasters that have largely completed their HD transition are now focusing on introducing efficiencies that will ultimately lead to new sources of revenue.

Indeed, the continued domination of “multi-platform content delivery” and “file-based workflows,” combined with the increasing importance of “IP networking & content delivery” and “cloud computing/cloud-based services” demonstrates that in 2013 broadcast technology buyers will spend money to create operational efficiencies, while at the same time working to generate new revenue streams through multi-screen offerings.  However, it remains to be seen whether many broadcasters will be able to create sustainable profits from multi-platform offerings.

It should be noted that there may be significant regional variations in this data.  For example, the transition to HDTV operations is likely to remain a strong driver for those end-users who have not yet started, or substantially completed their migration to HD.  Likewise, although “analog switch-off” is ranked towards the bottom of the 2013 Index, it’s probably safe to assume this is a top priority in in those territories where governments have mandated a switch to digital broadcasting.

 

 

Turning Talk into Action – When do Trends Become Capital Projects?

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).

The 2013 BBS Broadcast Industry Global Trend Index shows that monetizing content on multiple platforms remains the top objective for broadcast professionals in the year ahead.  However, many industry participants — on both the content and technology sides of the business — are still experimenting with their business models.

At some point these trends will drive capital projects, if they are not already doing so today.  When that happens they will become major drivers of technology spending in the broadcast industry.

In a future article, we’ll look at where money is being spent today in the broadcast industry.

 

 

The information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location. Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

The 2012 BBS Broadcast Industry Global Trend Index

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

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 Most Important Industry Trends for 2013

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Jun 18 2013

This is the first in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Measuring the Broadcast Industry’s Most Important Trends

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 2013 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 including broadcasters, broadcast service providers, technology vendors, consultants, and domain experts.

In 2013 we kept the list of trends in this Index the same as in 2012.  This enables direct year-over-year comparisons of trends across different demographics.  It also means that we decided not to include certain “new” technology trends in the 2013 Index, including 4K, Ad-ID, connected TV, DSLR cameras, HEVC, second screen applications, SOA, and social TV.  However, we have covered each of these “new” technologies separately in the 2013 BBS project, and will be making this information available to clients through our published reports.

 

The 2013 BBS Broadcast Industry Global Trend Index

To create the 2013 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.”

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 2013 BBS Broadcast Industry Global Trend Index.

Keep in mind this is 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.  We’ll address some of these topics in later posts.

Please note that this chart shows a weighted index, not a measure the number of people that 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 2013 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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2013 BBS -- 2013 BBS Broadcast Industry Global Trend Index

 

 

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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.  We’ll be addressing some of these in future posts on this website.

Although multi-platform content delivery is seen by far as the most important trend in 2013, 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.  Today these rankings are reversed.

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 #4 position on a global basis.

We provide significant coverage of the global transition to HDTV operations in the 2013 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 here about project-based spending and the HD transition in future articles.

At the same time, the relative importance of the transition to file-based workflows has been increasing in the market, and in 2013 is ranked #2 in the Index of Global Trends.

The “transition to file-based operations” is significant for many reasons. 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 saving cost is 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 2013, as broadcasters continue to deploy new workflows.

Another key driver of broadcast technology spend is new channel launches, which have the potential to increase revenue.  New channels, and the desire for simultaneous bandwidth saving and increased image quality for MPCD services have driven an increasing interest in “improvements in compression efficiency,” which is ranked #5 in the 2013 Index.

New channel launches are being enabled by integrated playout systems (aka “channel-in-a-box”), which bring 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.

“Cloud computing / cloud based services,” which was added to the Index last year is the #6 ranked trend (up one spot from last year).  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 so important to so many people ranked in the middle of the pack?  Our research shows that it’s still early days for cloud technology in the broadcast industry. Not only is there still a lack of widespread understanding about exactly how the cloud will impact the business models of broadcast technology buyers, there is also an inherent distrust of cloud technology by many broadcasters.  We posted some preliminary information about the planned uses of cloud technology in the broadcast industry in an earlier article called With All the Hype About Cloud, What Are Media Organizations Actually Going to Deploy?

Nevertheless, cloud technology is seen as increasingly important by broadcasters, as evidenced by several recently announced end-user initiatives and many discussions about creating a “virtualized broadcast infrastructure” in order to drive greater efficiencies.

So while the “hype” surrounding cloud technology in broadcast may be real, it appears that a previously much-hyped technology, 3D, is seen as increasingly less important to end users. Research participants ranked 3D at #14 in the 2013 Index.  It was #10 in 2012, and #8 in 2011.

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” (#7), and “targeted advertising” (#9) make strong showings in the 2013 Index.

Although it’s towards the bottom of the rankings, “analog switch-off” is very important for those regions where it’s happening today – primarily as mandated by local governments.

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” 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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The information in this article is based on select findings from the 2013 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 2013 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 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

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 – 2013. All Rights Reserved.

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Analyzing Where is Money Being Spent in the Broadcast Industry – The 2012 BBS Broadcast Industry Global Project Index

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, technology trends | Posted by Joe Zaller
Aug 08 2012

This is the third 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.

 

In a previous post, I discussed The 2012 BBS Broadcast Industry Global Trend Index, which shows which industry trends are most commercially important to the global sample of 2012 BBS respondents. 

Like any list of trends, this list includes a mix of current and future commercial priorities, some of which are being done today on a wide scale, some of which are in a trial phase, and others which have not yet been widely implemented.

By a wide margin, the top trend in the 2012 Trend Index is “multi-platform content delivery.”  Other important trends include the transition to file-based workflows, the transition to HDTV operations, and IP networking and content delivery.

Tracking broadcast industry trends and their evolution is useful because this shows what customers are discussing and thinking about implementing in the future.  However, a high ranking in an industry trend Index does not necessarily mean that this is where customers are spending their technology budgets in 2012 and 2013. 

Thus, it’s important to make a clear distinction between what broadcast customers are thinking and talking about in the future (industry trends), and where they are spending their technology budgets today.

Technology spending in the broadcast industry tends to be project-based. Projects might include international elections and sporting championships, to the long-term, planned capital upgrades of broadcast infrastructure and facilities.  Thus, an understanding of the major projects being implemented by broadcaster professionals around the world provides useful insight into the capital expenditure plans of the industry.

Projects represent where broadcast technology budgets are being spent today, not just what people are talking about doing in the future. 

In order to better understand this dynamic, were presented broadcast professionals with a list of major projects and asked them to indicate which ones they are currently implementing or are planning / budgeting to implement within the next year.  Their responses were then used to create the 2012 BBS Broadcast Industry Global Project Index, which is shown below. 

 

 

When compared to The 2012 BBS Broadcast Industry Global Trend Index, which can be found here, The 2012 BBS Broadcast Industry Global Project Index illustrates where broadcast technology budgets are being spent today.

Our research shows that the difference between what people are thinking and talking about (trends), and where they are planning to spend their budgets (projects) can be quite dramatic.

For example although “multi-platform content delivery” dominated the 2012 BBS Broadcast Industry Global Trend Index, the corresponding project “distribute and monetize content on multiple distribution platforms,” ranked #9 out of 17 in the 2012 BBS Broadcast Industry Global Project Index.

In terms of where money is being spent in the broadcast industry today, more broadcast technology buyers cited “upgrading infrastructure for HD/ 3Gbps operations” than any other project.  This project correlates directly with “transition to HDTV operations,” which was ranked #3 in the 2012 BBS Broadcast Industry Global Trend Index.

Although the transition to HDTV operations is certainly not new, it remains one of the key drivers of broadcast technology spending in 2012 and 2013.  Even as a small number of broadcasters announce that they are close to completing their decade-long transition to HDTV, many broadcasters are still in the early stages of the move to HD.  This is especially true in emerging economies where there is still a great deal of both standard definition and analog infrastructure. 

On a global basis, the transition to HDTV has consistently been the top driver of broadcast technology spending for the past several years — it was also the top project last year in the 2011 BBS Broadcast Industry Global Project Index – and it appears that this will be the case for the foreseeable future.

Significantly, the move to HDTV is represented in multiple places in the Project Index.  The projects ranked #3, #5, #7, and #10 – upgrading transmission & distribution capabilities; building new studios / OB vans; launching new channels; and upgrading newsroom operations – are also related to the transition to HDTV operations, as these transmission upgrades, new studios, new channels, and upgraded news environments will almost certainly be at least HD capable, if not fully HD.

Coming in as the #2 ranked project on this Index is “Install or enhance workflow / asset management system.”  It also achieved the #2 rank in 2011, but was much further behind the transition to HDTV in terms of overall importance to broadcast customers.

Although asset management is a relatively small and specialized market, it has become increasingly important over the past several years as broadcast customers move to file-based workflows and plan for multi-platform content delivery.  The take-away here appears to be that once a broadcaster has made the transition to file-based workflows, the strategic emphasis shifts to finding, deploying, and monetizing content in the most efficient way possible.  Thus asset and workflow management are likely to become increasingly important as customers move to business models focused on multi-platform content delivery, and driven by sophisticated IT-based systems.

The rest of the list offers a mixed picture of project activity across the world, and includes everything from upgrading audio and newsrooms to multi-platform distribution being chosen in large numbers. 

As mentioned earlier, multi-platform content delivery ranked #9 in the 2012 BBS Broadcast Industry Global Project Index.  It also was ranked #9 in 2011. Despite the importance to organizations of monetizing content on multiple distribution platforms, it appears many broadcast professionals have not solidified their business plans in this area.  This likely means that there will be significant opportunities in the future for broadcast technology vendors who offer a suite of products for multi-platform content delivery.  The current excitement surrounding OTT video and connected TV is evidence of this, but this is still a small proportion of the money being spent on broadcasting technology in 2012.

Interestingly, despite the fact that they may have the potential to deliver increased efficiencies and new revenue streams, there are several major projects that appear towards the bottom of this list. The two most obvious instances are the low ranking of “consolidate operations in regional hubs (centralcasting), and “outsourced operations (playout),” which are the bottom two projects on this list. This is because although these are high value projects, they will be undertaken by a relatively small number of organizations — i.e. large broadcasters.  This highlights that the 2012 BBS Broadcast Industry Global Project Index is a graphic representation of the number of all planned projects across all respondents, regardless of organization type, size, or location.  It does not measure size, value, or relative commercial importance of planned projects.  Please keep this in mind when reading this information and interpreting these findings.

 

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

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

Where is Money Being Spent in the Broadcast Industry in 2011?  The 2011 BBS Broadcast Industry Global Project Index.   

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 © Devoncroft Partners. All Rights Reserved.

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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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Where is Money Being Spent in the Broadcast Industry in 2011? The 2011 BBS Broadcast Industry Global Project Index.

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, content delivery, market research, technology trends | Posted by Joe Zaller
Apr 07 2011

 

This is the third in a series of articles about some of the findings from the 2011 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands.  More than 8,000 people in 100+ countries took part in the 2011 BBS, making it the largest and most comprehensive market study ever done in the broadcast industry.

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In previous articles, I’ve written about the 2011 BBS Broadcast Industry Global Trend Index, which shows the most important trends in the broadcast industry for 2011.  As a follow-up I wrote about how the commercial importance of these trends has changed over time.

Tracking broadcast industry trends is important because it provides insight into which areas are receiving the most attention from technology buyers.  However, it’s important to note that industry trends are a reflection of what customers are thinking and talking about, not necessarily where they are spending money today.

Indeed, the 2011 BBS Broadcast Industry Global Trend Index includes a mix of current and future commercial priorities, some of which broadcasters have not yet determined how to implement. Thus, while trends are important they do not necessarily translate into where broadcast technology buyers will be spending their budgets in 2011 and 2012. 

Technology spending in the broadcast industry tends to be project-based. Projects might include international elections and sporting championships, to the long-term planned capital upgrades of broadcast infrastructure and facilities.  Thus, an understanding of the major projects being implemented by broadcaster professionals around the world provides useful insight into the capital expenditure plans of the industry.

We presented broadcast professionals with a list of major projects and asked them to indicate which ones they are currently implementing or have planned / budgeted to implement in the next year.  Their responses were then used to create the 2011 BBS Broadcast Industry Global Project Index, which is shown below. 

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One look at the 2011 BBS Broadcast Industry Global Project Index illustrates the difference between what people are thinking and talking about (trends), and where they are planning to spend their budgets (projects). Although “multi-platform content delivery” dominated the 2011 BBS Broadcast Industry Global Trend Index, the corresponding project “distribute and monetize content on multiple distribution platforms,” ranked #9 out of 15 in the 2011 BBS Broadcast Industry Global Project Index.

By a significant margin, more broadcast technology buyers said that they are budgeting for “upgrading infrastructure for HD/ 3Gbps operations” than any other project.  Upgrading infrastructure for HD / 3Gbps operations was also the dominant planned project in the 2010 BBS. 

This project correlates directly with “transition to HDTV operations,” which was ranked #2 in the 2011 BBS Broadcast Industry Global Trend Index.

The projects ranked 3rd, 5th and 6th – upgrading transmission & distribution capabilities; building new studios / OB vans; and launching new channels – are also related to the transition to HDTV operations, as these transmission upgrades, new studios, and new channels will almost certainly be at least HD capable, if not fully HD.

Many of the other top ranked projects are related to the file-based / tapeless workflow, which ranked #3 in the 2011 BBS Broadcast Industry Global Trend Index. For example, many respondents indicated that they planning workflow / asset-management; archive-related; and automation projects.

The rest of the list offers a mixed picture of project activity across the world, and includes everything from upgrading audio and newsrooms to multi-platform distribution being chosen in large numbers. 

As mentioned earlier, multi-platform content delivery ranked #9 in the 2011 BBS Broadcast Industry Global Project Index.  Despite the importance to organizations of monetizing content on multiple distribution platforms, it appears many broadcast professionals have not solidified their business plans in this area.  This likely means that there will be significant opportunities in the future for broadcast technology vendors who offer a suite of products for multi-platform content delivery.  The current excitement surrounding OTT video, connected TV, and mobile DTV is evidence of this, but these initiatives represent a relatively small proportion of the money being spent on broadcasting technology in 2011.

Interestingly, despite the fact that they may have the potential to deliver increased efficiencies and new revenue streams, there are several major projects that appear towards the bottom of this list. The two most obvious instances are the low ranking of “consolidate operations in regional hubs (centralcasting), and “outsourced operations (playout),” which are the bottom two projects on this list. This is because although these are high value projects, they will be undertaken by a relatively small number of organizations — i.e. large broadcasters.  This highlights that the 2011 BBS Broadcast Industry Global Project Index is a graphic representation of the number of all planned projects across all respondents, regardless of organization type, size, or location.  It does not measure size, value, or relative commercial importance of planned projects.  Please keep this in mind when reading this information and interpreting these findings.

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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 2011 BBS, regardless of organization type, organization size, job title or geographic location.  Responses of individual organization types or geographic locations may be very different than those shown in this high level overview.  Granular analysis of these results is available as part of the full 2011 BBS Global Market Report. For more information about this report, please contact Devoncroft Partners.

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Related Content:

You can find out about the 2011 Big Broadcast Survey here.

The 2011 BBS Broadcast Industry Global Trend Index is here.

The 2010 BBS Broadcast Industry Global Trend Index is here.

The 2009 BBS Broadcast Industry Global Trend Index is here.

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This article is based on the findings from the 2011 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 8,000 people in 100+ countries participating, the 2011 BBS is the largest and most comprehensive market study ever done in the broadcast industry.

Devoncroft Partners has published a variety of reports from 2011 BBS data.  For more information, please get in touch.

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©Devoncroft Partners 2009-2011

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