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IABM: Media industry remains confident despite squeezed margin

Building on the analysis of qualitative and quantitative evidence gathered from broadcast and media companies, IABM has found that the broadcast and media industry remains positive despite their margin being squeezed, according to its latest Buying Trends Report.

Due to continued pressure on traditional advertising and subscription business model, revenue growth decreases from 9.3% in April 2019 to 3.1%, while profit growth remains negative. Despite the squeeze on financial performance, broadcast and media companies remain relatively confident that they can successfully counter the rising competition.

Indeed, 74% of the respondents remain positive about the business environment. The efficiency of a product remains the key consideration when making a purchase, followed by the total cost of ownership and agility.

As 92% of end-users say that interoperability is important, media operators are keen on prioritising technologies with multi-platform content delivery and 4K/UHD. Hence, the need to adopt new technologies boosts investment in building internal capabilities for technology development.

“Changing priorities have translated into a shift in technology spending that prioritises Opex over Capex,” said Lorenzo Zanni, IABM head of Insight & Analysis. “Our data demonstrate that technology users are focusing on solutions that make them more efficient and agile.

“To do that, they are spending more money on generic IT technology and increasingly investing in in-house development to suit their specific needs. This shift in technology spending is prompting end-users to adopt a variety of emerging technologies to streamline their supply-chains for the multi-platform world.

“Given that confidence levels remain relatively high, it is clear they are optimistic that they can meet the challenge from the digital giants head-on.”




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