IABM releases broadcast and media industry Brexit survey results

Comprehensive report lays bare facts, fears and hopes

IABM have unveiled the results of a detailed survey on the potential effects of Brexit on broadcast and media technology suppliers and end-users. Conducted during September 2016, the survey was carried out among UK and European broadcast and media companies. As this is a one-off survey, IABM has decided that non-members as well as members may have free access to the full report. The report can be downloaded here.

Key Findings

• A hybrid trade deal is seen as the most likely outcome when the negotiations are completed in 2019.
• 46% of respondents felt their businesses would be slightly affected as a result of trade restrictions, with a further 30% expecting to be highly affected.
• Most companies (between 66% and 88%) do not foresee reducing investment on four key areas – R&D, Recruitment, Training and Sales & Marketing – with recruitment being the most vulnerable at 66%, and R&D least so at 88%.
• 80% of end-users do not plan to reduce their investment in the UK – with 10% planning to do so and 10% uncertain.
• For 70% of research participants, exchange rate volatility is reducing investment incentives.
• 57% of respondents said that their organizations had not experienced any decrease in orders as a result of the Brexit vote – with 17% reporting negative effects.
• Most participants have not experienced any revenue (49%) or cost (47%) change. However, more companies have experienced revenue decreases than revenue increases and more companies have experienced cost increases than cost decreases.
• 57% of respondents said that restrictions on EU immigration would exacerbate skills shortages and make talent hunting more difficult.

IABM Industry Index - September 2016 Released

Executive Summary
Sales start to decline while profits dip

Sales in the broadcast and media technology market have declined by -0.6%. Revenue growth is primarily driven by large companies although their growth has also, significantly, slowed down in recent months. Technology spending continues to shift to software-based solutions with hardware sales really suffering from this transition. Recent IABM research shows that for most broadcast and media technology suppliers, hardware is the primary source of revenues. Some product categories remain unaffected by the transition to software and are bound to benefit from upcoming technology upgrades in Europe and North America as well as the continuation of spending on HD equipment. The transition to UHD is yet to drive significant technology spending as broadcasters are both wary of uncertain consumer adoption and reluctant to bear the cost of upgrading their operations to UHD. The increasing popularity of IP and cloud technology is driving suppliers to launch new offerings in order to remain competitive. The analysis is based on the latest sample of 104 company filings with aggregate sales amounting to US$8.2BN.

IABM Members can view the full report by clicking here

IABM IBC 2016 End User Survey Released

Our newly published end-user business report is a must-read for everyone in the industry. Market knowledge is key to making good business decisions and this report is packed with invaluable information on your customers’ current priorities and future plans.

• CEOs will learn where their customers see growth and how they plan to achieve it
• CTOs will be able to align product development strategies to real market requirements
• Marketers will learn what their customers’ real needs are and how to address them
• Sales staff will understand changing key customer demographics

The report is available free as part of your IABM membership – you can download it here (please note you will need to login as a member to view the report).

IABM September 2016 Benchmark Report released

Key findings of the report are as follows:

• The Profit-to-Sales ratio has worsened significantly although the Gross Margin remains relatively stable
• The financial health of the industry seems to have improved and the situation remains better than comparative sectors
• Both Software and Comms. Equipment companies show a better Return on Net Assets compared to the B&MT sector
• The Working Capital Management (WCM) indicators remain stable compared to our previous report
• R&D investment and Selling, Marketing, General and Administration costs continue to increase as the industry tries to stay ahead of the curve.

The report is available free as part of your IABM membership – you can download it here (please note you will need to login as a member to view the report).

Business Intelligence Digests

The IABM Business Intelligence Quarterly Digests provides IABM members with a varied range of business information about the broadcast industry and the wider global economy in a “digestible” way. The purpose of these reports is to enable member companies to keep up with the latest developments in our industry by presenting otherwise scattered information in an orderly and relevant manner.

Report contents and structure
The analysis is undertaken by our Research Analyst Lorenzo Zanni. We publish the latest news and research findings across a variety of topics, including:

• Current Global Business Environment
• Demand Side of the Broadcast Technology Sector
• Supply Side of the Broadcast Technology Sector
• Focus on a Regional Market

The regional focus articles published this year are:

• Latin America - November Issue
• Middle East & North Africa - March Issue
• North America - Special NAB Issue
• Asia-Pacific - June Issue
• Europe - September Issue