©IABM 2015 Business Update Peter White IABM CEO SET Breakfast Conference Session Tuesday 14 th April 2015
©IABM 2015
Business Update Peter White IABM CEO
SET Breakfast Conference Session
Tuesday 14th April 2015
©IABM 2015
IABM Industry Index
April 2015
©IABM 2015
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Global 3mth mov avg.
Year on Year Sales Change, last 24 months
IABM Industry Index Report April 2015
©IABM 2015
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Global 3mth mov avg.
Year on Year Sales Change, last 24 months
IABM Industry Index Report April 2015
2.6%
©IABM 2015
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Global 3mth mov avg. Large 3mth mov avg.
Year on Year Sales Change, last 24 months
IABM Industry Index Report April 2015
2.2%
©IABM 2015
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Global 3mth mov avg. SME 3mth mov avg. Large 3mth mov avg.
Year on Year Sales Change, last 24 months
IABM Industry Index Report April 2015
2.2%
5.5%
©IABM 2015
-30%
-20%
-10%
0%
10%
abr-13 mai-13 jun-13 jul-13 ago-13 set-13 out-13 nov-13 dez-13 jan-14 fev-14 mar-14 abr-14 mai-14 jun-14 jul-14 ago-14 set-14 out-14
Global 3 month moving average
IABM Industry Index Report April 2015 Year on Year Profit Growth, last 24 months
©IABM 2015
-30%
-20%
-10%
0%
10%
abr-13 mai-13 jun-13 jul-13 ago-13 set-13 out-13 nov-13 dez-13 jan-14 fev-14 mar-14 abr-14 mai-14 jun-14 jul-14 ago-14 set-14 out-14
Global 3 month moving average
6.2%
IABM Industry Index Report April 2015 Year on Year Profit Growth, last 24 months
©IABM 2015
-30%
-20%
-10%
0%
10%
abr-13 mai-13 jun-13 jul-13 ago-13 set-13 out-13 nov-13 dez-13 jan-14 fev-14 mar-14 abr-14 mai-14 jun-14 jul-14 ago-14 set-14 out-14
Global 3 month moving average Linear (Global 3 month moving average)
6.2%
IABM Industry Index Report April 2015 Year on Year Profit Growth, last 24 months
©IABM 2015
60%
65%
70%
75%
Global
IABM Industry Index Report April 2015 Companies in Profit, measured over last 24 months
©IABM 2015
60%
65%
70%
75%
Global
66.2%
IABM Industry Index Report April 2015 Companies in Profit, measured over last 24 months
©IABM 2015
60%
65%
70%
75%
Global Linear (Global)
66.2%
IABM Industry Index Report April 2015 Companies in Profit, measured over last 24 months
©IABM 2015
60,8%
5,4%
20,3%
13,5%
In profit both years
Moving from loss to profit
In loss both years
Moving from profit to loss
IABM Industry Index Report April 2015 Companies in Profit, measured over last 24 months
©IABM 2015
8%
9%
10%
11%
12%
13%
Global 3 month moving average
IABM Industry Index Report April 2015 Profit to Sales Ratio, last 24 months
©IABM 2015
8%
9%
10%
11%
12%
13%
Global 3 month moving average
IABM Industry Index Report April 2015 Profit to Sales Ratio, last 24 months
9.2%
©IABM 2015
8%
9%
10%
11%
12%
13%
Global 3 month moving average Linear (Global 3 month moving average)
IABM Industry Index Report April 2015 Profit to Sales Ratio, last 24 months
9.2%
©IABM 2015
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Sales Growth Profit Growth
2011 2012 2013 2014 2010 2015
Sales and profit growth 2010-2015 pre Conference figures
IABM Industry Index Report April 2015
©IABM 2015
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Sales Growth Profit Growth
2011 2012 2013 2014 2010 2015
Sales and profit growth 2010-2015 pre Conference figures
IABM Industry Index Report April 2015
©IABM 2015
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Sales Growth Profit Growth
2011 2012 2013 2014 2010 2015
Sales and profit growth 2010-2015 pre Conference figures
IABM Industry Index Report April 2015
©IABM 2015
IABM End User Survey NAB 2015
Powered by:
©IABM 2015
22%
3%
4%
1%
5%
23%
10%
6%
9%
17% Broadcaster
Film Studio
Radio Station
Recording Studio
Systems Integrator
Production / Post-Prod.
Govt / Edu / Corporate
Consultant
Freelancer
Other
IABM End-User Survey NAB 2015
Split of organizational type
©IABM 2015
0 10 20 30 40 50 60
Multi-platform content delivery (mobile, web, etc.)
File-based workflows
Media Asset Management
4K / UHD Production
Cloud Computing / Cloud-Based Services
Upgrading Operations to HDTV
HD Transmission
Social TV
News Operations
Back Office Systems (scheduling, billing etc.)
Connected TV
3D Production
Analog Switch-off
Index (/100)
Broadcast and media technology purchasing strategy – purchasing priorities - Index
IABM End-User Survey NAB 2015
©IABM 2015
0% 20% 40% 60% 80% 100%
Reviews in trade press
Vendor presentation and demonstrations
Recommendations from systems integrators
Vendor product development roadmap
Reference sites /user recommendations
Ease of integration
Purchase price
Reputation of vendor
Service and support from vendor
Best fit for functional requirements
9-10 (very important) 7-8 5-6 3-4 1-2 (not important)
The factors that influence purchase decisions
IABM End-User Survey NAB 2015
©IABM 2015
0 5 10 15 20 25 30 35 40 45
Makes us more efficient / saves money
Total cost of ownership
After sales service and support
Cutting edge technology
Interoperable with other vendor’s products
ROI
Reputation of vendor
Personal relationship with vendor
Installation support
Vendor roadmap (i.e. plans for the product)
Availability of training
Column1
Other factors affecting purchase decisions besides cost and technical specification - Index
IABM End-User Survey IBC 2014
©IABM 2015
IABM End-User Survey NAB 2015
Outlook for the business environment for the organization over next 2 – 3years
32%
40%
26%
2%
Very Positive
Quite Positive
Neutral
Quite Negative
Very Negative
©IABM 2015
GLOBAL MARKET VALUATION & STRATEGY REPORT
©IABM 2015
2014 - Total market size by region
Americas 36%
EMEA 47%
AsiaPacific 17%
GLOBAL MARKET VALUATION & STRATEGY REPORT 2014/5
©IABM 2015
2014 - Total market size by segment
10% 3%
7%
3%
5%
15%
2% 2%
54%
Acquisition and production
Post production
Content and communication infrastructure
Audio
Storage
Playout and delivery systems
System automation and control
Test, quality control and monitoring
Total Services
GLOBAL MARKET VALUATION & STRATEGY REPORT 2014/5
©IABM 2015
2014 - Total market size by segment excl. services
22%
5%
15%
7% 11%
31%
5% 4%
Acquisition and production
Post production
Content and communication infrastructure
Audio
Storage
Playout and delivery systems
System automation and control
Test, quality control and monitoring
GLOBAL MARKET VALUATION & STRATEGY REPORT 2014/5
©IABM 2015
$48.5 billion
GLOBAL MARKET VALUATION & STRATEGY REPORT 2014/5
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Americas EMEA Asia Pacific
Total market size by region (including Services)
$ b
illio
ns $48.5 billion
©IABM 2015
$48.5 billion
GLOBAL MARKET VALUATION & STRATEGY REPORT 2014/5
2009 – 2012 CAGR
Total Market: 4.0% Products: 3.6% Services: 6.0%
2012 – 2014 CAGR
Total Market: 1.3% Products: -0.5% Services: 2.9%
Structural Shift
“In Hindsight the Step-Change in Spending is Evident”
©IABM 2015
Global Market Valuation & Strategy Report 2013
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$ b
illio
ns
Service Revenue
Product Revenue
Historical Growth Profile 4% – 6%
Current Growth Profile 1% – 2%
Future Growth Profile 2% – 3%
Increasing Concentration in Services
©IABM 2015
Technology Update Peter Bruce
IABM Director - APAC
SET Breakfast Conference Session
Tuesday 14th April 2015
©IABM 2015
IABM Technology Survey
April 2015
©IABM 2015
Technology trends with the most impact on supplier business (3-5 years)
14%
27%
37%
8% 11%
3%
Higher Resolution CAPEX > OPEX & Cloud
IP, files & Networking
Automation Multi-screen, Multi-platform
Other
64% “File Based” related
©IABM 2015
Broadcast hardware replaced by IT hardware & Broadcast software (3-5 years)
0%
25%
43%
30%
2%
0% 25% 50% 75% 100%
<= IT HW and Broadcast SW
=> Broadcast Centric HW
©IABM 2015
Biggest challenge/opportunity driven by new technology (Now)
23%
38%
16%
4%
14%
5%
Infrastructure replacement
Hardware to software
New business Market slow down
Reduced margins Other
©IABM 2015
Your hardware/software product sales versus non-product rental/service/subscription revenues? (Now)
8%
16% 16%
39%
21%
0% 25% 50% 75% 100%
<= Services
=> Hardware
©IABM 2015
Your hardware/software product sales versus non-product rental/service/subscription revenues? (3-5 years)
8%
19%
24%
30%
19%
0% 25% 50% 75% 100%
<= Services
=> Hardware
©IABM 2015
Biggest technology/business related challenge? (Now)
33%
21%
26%
7% 10%
3%
Transformation & reskilling
Commodisation & lower margins
Educating customers
Market slow down
Funding new development
Other
How big an issue is training?
©IABM 2015
Multi-platform & OTT viewing, influence on traditional professional technology supply? (3-5 years)
2% 5% 14%
67%
10% 2%
Need to create OTT offerings
Broadcast buys OTT companies
OTT companies buy Broadcast
IT technology blurs Broadcast
and OTT
OTT kills traditional
playout
Other
©IABM 2015
The main driver of industry change? (Now)
15%
34%
20% 20%
7% 4%
Consumer purchasing power
Consumer product
companies
Broadcast & Media companies
Technology suppliers
IT Industry Other
Who’s driving Who?
©IABM 2015
Thank You