valuation report published
The IABM, the trade body which represents broadcast and media technology suppliers worldwide, produces a number of reports to help its members understand the health of the industry. Of these, the most significant is the Global Market Valuation and Strategy report, which is undertaken in association with research body IHS Screen Digest. This was launched in 2006, and the most recent edition - the fourth - has just been published. Peter White, director general of the IABM, reports.
financial information on their businesses, to IHS Screen Digest under a strict confidentiality agreement. Their cooperation is instigated by the IABM but kept quarantined, so there can be no question of commercially confident data being revealed. This financial data forms the bedrock
of the valuation and forecasting. To it is added qualitative information derived by the researchers through detailed interviews with companies, publicly available financial data in terms of formal returns, and opinions derived from IHS Screen Digest’s other work. I believe it represents the most accurate and trustworthy valuation of the market. The headline news is that, in 2010,
the total value of the broadcast and media technology industry worldwide was just over $24 billion. Of that about $15 billion went to manufacturers, with another $1 billion going to the sales channel. The remaining £8 billion represents
the service sector within the industry. Transmission infrastructure and rental & hire represent the biggest parts of the services segment, with the rest of the total made up by systems integration, support, consultancy and management. The valuation needs to be put into
context, following the recession which affected every business worldwide. 2008 was a record year for the industry, despite the global slowdown in the fourth quarter. 2009 came as a
Measuring-up T
he research on which this report depends could only be carried out by a trade body. A significant number of manufacturers, from across the range, provide detailed
shock for every vendor in the market: the overall figure was a 13% fall in revenues, which made life very difficult indeed. The good news was that growth
returned in 2010, with an overall upturn of 6%. The shock of 2009 had caused many vendors to take a long hard look at their businesses, trimming operational costs as far as possible to get into shape for the recovery. That, combined with the earlier than expected return to growth, means that the industry has a solid footing on which to continue. Our forecast is that 2012 will see
revenues return to the 2008 level, which is good news indeed. While in large measure this is due to the global economy recovering from the economic disaster - and reflects broadly the movement in GDP - there is a special factor at work which links both 2008 and 2012. These years are at the peak of the
quadrennial cycle which drives a significant amount of investment. In the USA, broadcasters beef up their news-gathering kit to follow the race for the presidency. And globally preparations are completed for the Olympic Games. In 2008 the sporting frenzy was
boosted by China’s decision to use the Games as a trigger for massive investment in its domestic broadcast infrastructure. London 2012 is being touted as ‘the first truly digital Olympics’, with online services and social networking as much a part of the plans as traditional broadcast. With global sports events in Brazil in
2014 and 2016, Latin America could be expected to see strong growth in the coming years. In fact, the region is
expected to far outstrip its GDP, with growth in broadcast technology at 8.8% a year to 2015, the forecast horizon for this report. Compare this with 3.4% growth in
Western Europe over the same period, albeit from a higher base. That keeps it as the largest sub-region in the world in terms of value, worth $8.5 billion by 2015. As might be expected, China and
Peter White,
director general of the IABM.
India will develop further as major markets. China has already seen massive investment, but will grow at 6.9% to 2015. Its domestic vendors will take a large part of this, of course, but will also become a growing force outside China’s borders. India, with a much less developed domestic industry, is expected to show growth of 11% on average to 2015, the fastest of any country. All this potential for growth comes
at a time when the technical basis for the industry is shifting, with standard computer platforms capable of more and more functionality that formerly required dedicated hardware, and consumer pull creating the need to serve multiple platforms and multi- screen services. What the report shows is that the
industry responded well to the challenges of recession and is poised to reap the benefits of recovery. Companies who understand the new opportunities which technology has opened up, without losing sight of the qualities which make the broadcast world special, will be in a strong position to succeed. Global Market Valuation & Strategy
to 2015 is published by the IABM. See
www.theiabm.org for more information.
www.ibeweb.com l september/october 2011 l ibe l 11
iabm
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