- IABM releases its latest Buying Trends Report
- Report found revenue growth of 3.1%, down from 9.3% in April 2019
- But industry confidence remains high at 74%
Despite a noticeable fall in industry revenue, buying confidence remains high according to the IABM’s latest report.
IABM has just released its latest Buying Trends Report. The Report is built on analysis of qualitative evidence gathered from broadcast and media companies immediately prior to IBC2019 together with quantitative data drawn from their latest financial filings. IABM members can review the full report here.
The Report’s findings reflect the ongoing radical shift in the demand side of the industry: revenue growth decreased by over six percentage points and profit growth remained negative. Despite this squeeze on financial performance - due to the continued pressure on traditional advertising and subscription business models – broadcast and media companies remain relatively confident that they can successfully counter increased competition. As with the April 2019 edition of the Report, efficiency remains the key driver in all technology purchasing decisions.
The headline findings of the October 2019 Buying Trends Report are:
- Revenue growth decreases from 9.3% in April 2019 to 3.1%, and profit growth remains negative at -3.1% - slightly down from -2.4% reported in April
- Confidence nonetheless remains high with 74% of respondents saying that they are positive about the business environment, down by four percentage points compared to six months ago
- 21% of technology users derive the vast majority of their revenue (more than 80%) from traditional broadcast operations although most expect this to change
- Efficiency remains the most important driver of product purchase, followed by total cost of ownership and agility
- Multi-platform content delivery is the most important priority for technology users followed by 4K/UHD
- Investment in building internal capabilities for technology development continues to increase
- Cloud, UHD, and AI rise while Blockchain is still at an early stage of adoption at 2%
- 92% of end-users say that interoperability is important
“Changing priorities have translated into a shift in technology spending that prioritizes Opex over Capex,” said Lorenzo Zanni, IABM head of Insight & Analysis. “Our data demonstrates that technology users are focusing on solutions that make them more efficient and agile. In order 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.”
- Read more: IABM’s IBC2019 takeaways