The IABM’s Business Intelligence Unit has published a timely and detailed report covering the various impacts of the coronavirus pandemic on the media entertainment industry.
The core element of this qualitative and quantitative set of findings is that lockdowns are radically changing technology preferences, business models, and the means of human interaction. In terms of what the post coronavirus scene may be propelled by, the already irreversible shift to investment in digital business models and cloud workflows will accelerate at breakneck speed, in tandem with consumer viewing habits.
Lorenzo Zanni, head of insight and analysis at the IABM, points at the big hurts like fast vanishing TV advertising revenues and lost events such as NAB. He said: “We are seeing all types of advertising spending declining significantly. In terms of media technology investments, we are seeing that shifting immediately and radically to solutions that enable remote working.
“Some broadcast and media organisations have been forced to take a more digital approach to cope with the risk of physical content,” he added. “Risk preferences are shifting radically as a result of this external shock. The whole industry needs to adapt temporarily to this moment of disruption and go virtual.”
According to the IABM research, there will be a lasting impact on demand for media technology.
“We do not see things going back to the way they were. People are talking about a ‘new normal’,” said Zanni. “Demand for (software) subscriptions is set to accelerate as a result of this crisis.”
The report shows that users at the start of the supply chain are buying editing and remote production technology.
“In content management, more is going towards content analysis to leverage archives, to fill holes in schedules. Investment in infrastructure is going to enable virtualisation, collaboration and efficiency, as demand for streaming is pressurising infrastructures,” said Zanni.