Posts Tagged ‘Media Technology Business Summit’

AWS is now a $10 Billion Annual Revenue Business

Analysis, Broadcast technology vendor financials | Posted by Josh Stinehour
May 02 2016

Amazon reported results for the first quarter of 2016.  Since the first quarter of 2015, Amazon has been reporting the individual results of Amazon Web Services (AWS).  Based on Q1 2016 figures, AWS is now a $10 billion run-rate revenue business with a trailing twelve month operating income of nearly $2 billion.

The reported revenue for AWS consists of the more than 70 services now offered from the AWS platform including the sales of compute, storage, and database.  Amazon does not specifically address how much AWS revenue was attributable to the media industry.  However, the AWS figures are an informative data point for better understanding the broader adoption of cloud services.

For the three months ended March 31, 2016 AWS had revenue of $2.6 billion, a 64% increase over the first quarter of 2015.  AWS represented 8% of Amazon’s sales for the quarter, an increase from the 6% contribution for Q1 2015.

AWS operating income for Q1 2016 was $604 million, which was a 210% year-over-year increase versus the first quarter in 2015.  During the quarter AWS actually generated more operating income than all of Amazon’s other business lines – both on an individual and aggregate basis.

Operating margins for AWS in the quarter were 23.5%, a substantial increase over the 12.4% operating margins during Q1 2015. The reporting of operating income now includes a burden for stock-based compensation (this lowered operating margins versus historical reporting).

Management attributed the growth in AWS revenue and profitability to increased customer usage and cost structure productivity.  This was partially offset by continued pricing decreases and increased spending on technology infrastructure.

The below chart from Amazon’s Q1 2016 earnings presentation illustrates the growth of revenue and operating income for AWS over the past year.

 

AWS-Results

 

Operating incomes doesn’t capture the cash flow impact of capital expenditures and payments attributable to the financing of equipment for AWS, which is not disclosed directly.  It is a capital intensive business.

Additional information from Amazon’s filings are illustrative of the significant level of investment in technology infrastructure attributed to AWS.  The Company’s total capital expenditures (cash) were $1.2 billion in Q1 2016, a 38% increase over Q1 2015. According to Amazon’s SEC filings, “This primarily reflects additional investments in support of continued business growth due to investments in technology infrastructure (the majority of which is to support AWS) and additional capacity to support our fulfillment operations.”

Cash capital expenditures do not account for property and equipment acquired under capital lease obligation (non-balance sheet items).  Property and equipment acquired under capital leases were $875 million in Q1 2016, an 8% decrease over Q1 2015. A majority of this spend is due to investments in technology infrastructure for AWS.

On Amazon’s call with earnings analyst, Brian Olsavsky, SVP and Chief Financial Officer, stated the combined total of capital expenditures and capital lease obligations was $9.5 billion in the trailing 12 month period.  AWS is the largest driver of this spend, but does not consume all of this number

AWS specifically and cloud vendors more broadly, are benefiting from a secular trend toward cloud usage among media and entertainment sector.  As cloud providers replace the capital expenditures of media customers, there are significant implications for technology vendors and service providers.  The $9.5 billion figure (noted above) is equivalent to almost half of all annual product sales in the media and broadcast technology sector based on the latest results of the IABM DC Global Market Valuation Report (www.iabmdc.com).

The adoption of cloud infrastructure in the media industry is not necessarily a negative development for the technology vendor community.  AWS views its services as unburdening organizations from the undifferentiated heavy lifting of technology deployments.  In this way, AWS is allowing media customers and media technology suppliers to focus on the aspects of their businesses differentiating their products and services to customers.

Moving to cloud infrastructure does necessarily require new technology architectures, revenue models, and operating structures.  These topics were discussed extensively during the recent Media Technology Business Summit at the 2016 NAB Show including a keynote from AWS titled, “’All In’: Cloud Transformation of the Media Industry.”  If you haven’t downloaded our slides from the event, a complimentary copy is available from the following link.

While Amazon does not disclose specific AWS numbers in the media vertical, Amazon founder Jeff Bezos did note a high-profile media customer in his annual letter to shareholders (excerpt below).

“MLB Advanced Media is an example of an AWS customer that is constantly reinventing the customer experience. MLB’s Statcast tracking technology is a new feature for baseball fans that measures the position of each player, the baserunners, and the ball as they move during every play on the field, giving viewers on any screen access to empirical data that answers age-old questions like ‘what could have happened if…’ while also bringing new questions to life. Turning baseball into rocket science, Statcast uses a missile radar system to measure every pitched ball’s movements more than 2,000 times per second, streams and collects data in real-time through Amazon Kinesis (our service for processing real-time streaming data), stores the data on Amazon S3, and then performs analytics in Amazon EC2. The suite of services will generate nearly 7 TB of raw statistical data per game and up to 17 PB per season, shedding quantitative light on age-old, but never verified, baseball pearls of wisdom like ‘never slide into first.’”

 

Related Content:

Presentation: Q1 2016 Amazon Earnings Presentation

Press Release: Q1 2016 Amazon Earnings Press Release

SEC Filing: Q1 2016 Amazon SEC Filing

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

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

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

Media Technology Business Summit

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

Las Vegas Convention Center, Room N249

Open to all 2016 NAB Show Registrants

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2016 Devoncroft NAB Media Technology Busienss Summit

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Conference Agenda

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

  • Joshua Stinehour, Principal Analyst Devoncroft

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

  • Joe Zaller, Founder & President Devoncroft

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

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

 

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

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

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2:50pm – The Broadcaster C-Suite: Trends Driving Investment Decisions

  • John Honeycutt, CTO Discovery Communications
  • Renu Thomas, EVP Media Operations, Engineering & IT Disney/ABC Television Group
  • Richard Friedel, EVP and GM Fox Network Engineering and Operations
  • Håvard Myklebust, CTO TV2 Norway

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

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

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

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

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

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

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

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© Devoncroft Partners 2009 – 2016. All Rights Reserved.

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

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

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

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

 

Devoncroft NAB 2016 Broadcaster Panel

 

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

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

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

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

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

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

 

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

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Speakers Announced for the 2016 NAB Show Media Technology Business Summit

Conference Sessions | Posted by Josh Stinehour
Apr 04 2016

We are pleased to announce the full agenda and speaker lineup for the fifth annual Media Technology Business Summit at the upcoming 2016 NAB Show.

As a reminder, the Summit starts at 1pm on Sunday April 17th and is located in room N249 of the Las Vegas Convention Center.  The event is co-produced by Devoncroft Partners and the organizers of the NAB Show.  Admission is available to all NAB Show exhibitors and registered attendees (remember to bring your NAB Show badge).

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

An overview of the conference is included below.  Full details are available on the NAB Show website.

 

2016 NAB Show Media Technology Business Summit

 

1:00pm – Welcome and Introductions

Presenter:

  • Joe Zaller, President Devoncroft Partners

 

1:05pm – Strategic Industry Analysis: Valuations, M&A, and Equity Finance

Josh Stinehour of Devoncroft will take the podium for his annual (enthusiastic) presentation on developments in the media technology sector.  If you have any final announcements you would like Josh to consider for his presentation, let him know.

Here is a link to the NAB Show website individual session listing.

Presenter:

  • Josh Stinehour, Principal Analyst Devoncroft Partners

 

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

Devoncroft founder Joe Zaller will present a summary of key data derived from a variety of broadcast market intelligence projects including the 2016 Big Broadcast Survey, the industry’s definitive demand-side market study. This market data will highlight the technology investments made in 2015, expectations for technology spend in 2016, and key trends driving technology investments.

Here is a link to the NAB Show website individual session listing.

Presenter:

  • Joe Zaller, President Devoncroft Partners

 

1:50pm – Change is the new normal: Transforming for business success in the new Media landscape

As the Media industry undergoes massive transformation, only the strongest or most considered will survive. To win at a time when change is the constant requires technology shifts, operational re-organizations and completely new business models that address the challenges of the new Media landscape of consolidated customers, and ever more fickle consumers.

Ericsson’s SVP and Group CTO, Ulf Ewaldsson, will reflect on how Ericsson’s own transformation, and that of Telecoms and ICT, has parallels with the Media industry, and why Ericsson has invested to become one of the largest global TV & Media providers of products and services. The session will also highlight some of the latest technologies that underpin success, and just how different a business mindset is needed to excel.

Here is a link to the NAB Show website individual session listing.

Presenter:

Ulf

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

CEOs from four leading media technology suppliers will debate the most important commercial issues facing the industry, and discuss their strategies to position their companies for success in a rapidly evolving marketplace.  The panelists will also offer opinions on how changes in the business environment are impacting vendors and customers.

Here is a link to the NAB Show website individual session listing.

Moderator:

  • Joe Zaller, President Devoncroft Partners

Panelists:

NAB 2016 Devoncroft Vendor CEO Panel

 

2:50pm – The Broadcaster C-Suite: Trends Driving Investment Decisions

Senior technology executives from leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision.  The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

Here is a link to the NAB Show website individual session listing.

Moderator:

  • Joe Zaller, President Devoncroft Partners

Panelists:

NAB 2016 Devoncroft Broadcaster CTO Panel

 

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

A panel of executives from well-known IT vendors operating in the media technology sector will offer the IT community perspective on developments in the media sector. Participants will also share opinions on the implications of broader technology advancements to the sector. In particular the discussion will focus on the role of the IT vendor in the ongoing transition of the media technology sector to take advantage of technologies such as IP and virtualization.

Here is a link to the NAB Show website individual session listing.

Moderator:

  • Al Kovalick, Media Systems Consulting

Panelists:

NAB 2016 Devoncroft IT Panel

 

4:00pm – The Service Provider Perspective on Industry Trends

A panel of executives from leading media service providers will discuss views on both technology developments and deployment considerations for media organizations.  Discussion topics will include solutions for multi-platform content delivery, the economics of outsourcing, how service providers can leverage their scale to deliver increased performance and agility, and how next-generation data center architecture may impact the media ecosystem.

Here is a link to the NAB Show website individual session listing.

Moderator:

  • Josh Stinehour, Principal Analyst Devoncroft Partners

Panelists:

NAB 2016 Devoncroft Service Provider Panel

 

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

Amazon Web Services and Elemental leaders discuss the unprecedented impact of the cloud on media and entertainment industry business models. Alex Dunlap, general manager of Amazon CloudFront, and Sam Blackman, CEO and co-founder of Elemental, will share insights about media leaders who are going “all in the cloud”. The session will discuss cutting edge end-to-end media workflows, the advantages of video processing and delivery from the cloud, and how Amazon’s 2015 acquisition of Elemental represents the future of the media industry.

Here is a link to the NAB Show website individual session listing.

Presenters:

NAB 2016 Devoncroft AWS Keynote

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

Share Your Opinions on the State of the Media Technology Industry in 2016

broadcast technology market research | Posted by Josh Stinehour
Mar 28 2016

If you haven’t already taken Devoncroft’s 2016 Big Broadcast Survey (BBS), then we hope you will take the time to share your opinions on market trends, project deployments, and technology suppliers. BBS Logo

Click here to register for the 2016 Big Broadcast Survey.

Once you complete the short registration process (necessary in an age of web-crawling spam bots), we’ll send you a link to participate in the 2016 BBS, the largest and most comprehensive annual study of the broadcast and media technology industry.

A summary of the responses received prior to the 2016 NAB Show will be presented during the “Media Technology Business Summit” on Sunday (April 17th) ahead of the NAB Show exhibition. We hope to see you there.

Why your feedback is important

Your thoughtful feedback is a critical tool for media technology strategists.

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

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

We recognize your time is valuable, so in return for completing the 2016 Big Broadcast Survey you will receive the following:

  • A 100-page summary of Devoncroft’s most recent global study of the market (as soon as you complete the survey)

 

  • A strategic analysis of important developments in the media and broadcast industry prior to the 2016 NAB Show

 

  • A 100+ page summary of the 2016 BBS results, as soon as it is available

 

  • An entry into a random drawing for a chance to win 1 of 5 prizes (your choice of Apple iPad Air 2 WiFi 128GB; OR Shure SE846 Sound Isolating Earphones; OR USD $750 Marriot/Ritz Carlton worldwide hotel voucher). Please see terms and conditions.

 

Click here to register for the 2016 Big Broadcast Survey.

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

Don’t Miss the Fifth Annual “Media Technology Business Summit” at the 2016 NAB Show

Conference Sessions | Posted by Josh Stinehour
Mar 28 2016

Whether you are a supplier, buyer, or investor in the media technology sector, you won’t want to miss the “Media Technology Business Summit” at the upcoming NAB Show.

Now in its fifth installment at the annual NAB Show, this half day session will take place on the afternoon of Sunday April 17th from 1pm to 5pm in room N249 of the Las Vegas Convention Center.

 

Summit-Collateral

 

Similar to prior years, the event will feature executive panel discussions across the entire media value chain.  C-level executives from leading broadcasters, service providers, media technology vendors, and IT vendors will offer candid assessments of the business impact of market developments on their business models, operational practices, and strategic decision making.

As a complement to the panel discussions and keynote presentations, we will also review excerpts from the latest findings of Devoncroft’s Big Broadcast Survey, the industry’s definitive demand-side study of the broadcast and media sector.

We are in the process of confirming the event’s lineup of speakers and panelists.  Once complete, we will post the full agenda.  A preliminary agenda is available from the NAB Show website.

This conference is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector.  A NAB Show badge is required for admission.

Approximately 500 executives attended this standing-room only event at the NAB Show 2015. We hope to see you there in April 2016.

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

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