One of the particularities of the broadcast industry is the importance of trade shows. An IABM study has shown that vendors were spending up to 70% of their marketing dollars on events and 50% on NAB and IBC alone but were hardly generating any new revenue generating leads. After exhibiting at over 100 tradeshows between NAB, IBC, Cabsat, Interbee, Broadcast Asia, CSTB, BVE, BIRTV,… I can really relate to that. So what especially smaller or new vendor can do to improve and measure the return on investment?
The broadcast industry often feels like a Pac-Man game with larger vendor swallowing smaller ones in the alleys of trade shows. The mix of company sizes with only very few above 100M€ and hundreds between 10 and 20M€ yearly revenue is favourable to such a consolidation.
In a competitive non-growing market with a limited number of potential customers and significant R&D spends vendors once they have reached the limits of their geographical and product niches often look at mergers to sustain growth. Alongside with the interest to acquire missing or emerging technologies one of the key drivers behind mergers is the wish to increase sales organisation productivity by expanding the product portfolio.
The broadcast industry is rapidly changing under the combined pressure of technology evolution and evolving business fundamentals. Technology represents only 5 to 10% of the broadcaster budget way behind programming costs but technology vendors feel the pain and as a recent IABM conference title suggested need to “adapt or die”.
As hardware centric vendors move toward license based monetization models as they migrate toward software and IP solutions new challenges emerge. As this transition will be very long they will need to maintain legacy solutions while developing new ones. They will need to cope simultaneously with different business, technical support and revenue recognition models. With an even higher need of consultative selling they will also need to adapt their go to market model.
The elements of the business challenge for traditional media companies fighting for viewers eye balls‘ are clear thus scary: Increasing content costs by diminishing ad revenues and carriage fees, reduced public funding and aging audiences.
4th French Bavarian business dinner Alain Polgar moderated and participated to the organisation of this event organised by the French General Consulat and the French Foreign Trade Advisors with the support of the Deutsch-französische Wirtschaftsclub in Bayern. After the Key…
IBC (International Broadcasting Convention) conference in Amsterdam As IP technologies and cloud make their way into media production this panel including executives of Channel 4, SDVI, Ericsson, Mediasmiths or mediaSTRAT discussed the resulting impact on broadcast media organisations. The over…