- IABM finds coronavirus radically accelerating the M+E landscape
- D2C, virtualisation and remote working sees rise in investment
- Traditional advertising revenues expected to fall 12%
New programming formats and workflows, direct-to-consumer driving digital transformation, and the adoption of virtual selling models are top priorities according to the IABM’s Coronavirus Impact Report.
The Covid-19 pandemic is changing business models, technology choices and ways of interacting across the globe and leading an irreversible shift in media and technology investment away from legacy, towards digital business models and workflows.
According to the latest research from the IABM, the impact of coronavirus is not only radically changing the events landscape for the media and entertainment industry but also on the shape of technology roadmaps and supply chain investment.
IABM head of insight and analysis Lorenzo Zanni said: “Accurate, insightful and timely information has never been so important as it now is in the uncharted territory of the coronavirus pandemic.
“The IABM Business Intelligence team is constantly monitoring and analysing its impact on all sides and aspects of the broadcast and media industry. As well as the negative effects we report on, the coronavirus pandemic is proving to be a powerful accelerant in broadcast and media.
“Risk preferences are shifting dramatically and investments that were seen as ‘too risky yet’ just a couple of months ago are now being enthusiastically embraced.”
The report’s findings are based on qualitative and quantitative research carried out by IABM’s Business Intelligence Unit, which is monitoring new developments and trends as they unfold.
The major side effects of social distancing is causing great changes for business, with a 60% projected spike in streaming and a 67% increase in consumers watching more news while Microsoft Teams saw a 500% increase in usage in China during lockdown.
Advertising revenues are expected to fall 12% in traditional media advertising, mainly driven by sports with more than 450 sporting events cancelled worldwide as well as upwards of 150 scripted production cancelled in the US.
The report highlights the adverse impact on advertising revenues.
Channel 4 chief executive Alex Mahon said: “As a commercially funded business, the Covid-19 outbreak has had a sever impact on our advertising revenues.
“And so we are taking action now to manage our costs appropriately and ensure that we both protect our staff and our ongoing ability to serve our audience.”
It added: “Hardware revenues will take the largest hit from the crisis…cancellations of live events and scripted productions are largely responsible for the negative shock in hardware revenues.”
As companies adapt the ‘new’ normal, the IABM found “most nice-to-have projects are being halted or slowed down to prioritise technologies that allow remote working and remote production,” with its Technology Impact Index finding virtualisation and remote production the two most invested technologies.
It also found that direct-to-consumer (D2C) is driving change and is at the centre of the digital transformation for media companies with the focus on getting content out to consumers and optimising experience at a time when demand exceeds supply.
The IABM has launched a dedicated page to support business contingency plans to help the industry navigate this crisis.
- Read more: Reporting live: Contingency broadcasting
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