Posts Tagged ‘Mobile DTV’

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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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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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

Media General’s Tampa NBC Affiliate Launches Company’s Second Mobile DTV Service

broadcast industry technology trends, broadcast industry trends | Posted by Joe Zaller
Oct 29 2010

US broadcast station group Media General said today that it has launched the first mobile DTV service in the Tampa, FL market at WFLA-TV its NBC affiliate there.

This is Media General’s second mobile DTV launch. Last month it launched its first mobile DTV service at WCMH, its Columbus Ohio NBC affiliate.  The new service in Tampa began during the week of October 11, providing a real-time local broadcast signal.  The company says that the service can be received on suitably equipped laptops, mobile phones and other portable devices.  

Marshall N. Morton, president and chief executive officer of Media General, said, “In addition to now offering Mobile DTV in two television markets, we look forward to extending our reach to as many as 4-6 additional television markets in the coming months.”  

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You can read the full Media General press release here.

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Media General Launches Mobile DTV Service in Columbus, OH

broadcast industry trends, content delivery | Posted by Joe Zaller
Sep 29 2010

US broadcast station group Media General announced today that WCMH, its Columbus Ohio NBC affiliate, is the company’s first station to launch a mobile DTV service.

Company president and CEO Marshall Morton said that mobile DTV will enable the company to extend its reach and deliver content to viewers, when, where and how they want it.  Morton also said that the company is looking forward to “launching Mobile DTV in as many as 5-7 additional television markets in the coming months.”

WCMH is apparently starting with a simulcast of its primary channel, but according to a press release it “expects to provide unique graphics for the mobile stream and allow for spot advertising insertions much like cable systems do today.”

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You can read the full Media General announcement here.

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TV Tech Interview with Head of Harris Broadcast Business Reveals Mobile DTV Revenues

broadcast industry technology trends, broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Apr 09 2010

TV Technology magazine recently published an interview with P. Harris Morris, the new head of the Harris Broadcast & Communications business unit.

In the interview with TV Tech, Morris talks about the broadcast business, gives an overview of company’s NAB plans and discusses their interoperability labs in the US, Canada and the UK.

Most interesting to me is that towards the end of the interview when the subject turns towards mobile DTV, Morris reveals that the company has “delivered more than 45 systems nationwide already and, at the upcoming Washington, D.C., Mobile Consumer Showcase, our systems will be used in at least six of the eight over-the-air broadcast stations.”

Morris then goes on to say that he “wouldn’t be surprised to see 100 to 150 more stations roll out mobile capabilities during the next year.”

As I said in January just after returning from CES, and more recently while being interviewed by Harry Jessell, the market hype may be about 3D, but for US broadcasters and the vendors that sell to them, there’s much more action in mobile. It looks like Harris is one of the companies that’s taking advantage of this trend and turning it into significant revenue.

I’ve been told by broadcasters that the incremental cost of enabling mobile DTV broadcasting (for a station that has already made the switch to DTV) is about $150,000 per station.  Thus the numbers in the TV Technology interview with Mr. Morris indicate that Harris has already brought in revenue of ~$6.75m from mobile DTV; and the company has the potential to sell an additional $15m – $22.5m worth of this technology over the next year.  Even if the $150K per station estimate is high, there is still good money here for Harris and the other companies who are targeting this space.

TV New Check “Tech One on One” Interview

broadcast industry technology trends, broadcast technology market research | Posted by Joe Zaller
Apr 08 2010

I was recently interviewed by Harry Jessell, editor of industry website TVNewsCheck.com about my 2010 study of the broadcast market.

Jessell published the interview today as part of his “Tech One on One” series, which profiles key technology players in the broadcast market.  In it he asks me a number of question about industry trends, major projects being planned by US broadcasters, the capex plans of broadcasters, and which product categories I thnk will do well this year based on my research.  We also discussed 3D, which as I’ve said before,  I am skeptical about when it comes to the average US broadcaster.

You can find the full interview here.

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