According to the latest buying trends report released by IABM, the revenue growth for media operators is projected to increase from 5.3% to 9.3% in H1 2019. However, profit growth will experience a weak growth of 0.2% to -2.4%.
This indicates optimism in sales revenue; however, opex requires careful handling.
The rise of new media poses a threat to existing traditional advertising and subscription-based business model as the new digital media presents a wide range of direct-to-consumer offerings. Despite the looming pressures, the IABM report states that 25% of the respondents say their companies still derive more than 80% of their current revenue from traditional broadcasting operations.
Lorenzo Zanni, IABM’s head of Insight & Analysis, says: “These results show that the demand side of the industry continues to go through a radical shift, with changing revenue models influencing the trends in media technology investment.”
Emerging technologies such as AI and ML have become appealing options for media operators to streamline content management chain for the multi-platform world. AI/ML can automate a variety of routine workflows, thereby speeding up media workflows.
IABM states that AI/ML adoption has increased significantly, from 13% over the past few years to 20% in the current survey.
This reflects the increasing interest of the M&E industry in a technology that meets its relentless search for efficiency and agility.
Adoption of matured technologies such as IP and cloud remains strong, due to their capability in delivering content over multi-platform efficiently. In the new world of premium content, media operators have heavily invested in such technologies to deliver content in 4K/UHD.
However, blockchain and VR adoption rates still remain subdued.
As media operators seek for a balance between content delivery and cost-efficiency, Zanni predicts: “Although technology investment has shifted to new priorities, technology has never been so key to driving business success in the multi-platform world.
“Buyers’ continued adoption of new technologies requires suppliers to move to new business models centred on the flexible provision of software.
“With change, the future is bright as greater investment is poured into content.”