Insight

Broadcast media companies lack confidence for the future

By David Lawrence |

The new IABM supply trends report for the broadcast media industry highlights a number of key trends. This is the first report in its new format and it illustrates that sales in the broadcast and media technology field for the six months to December 2017 show modest growth in year-on-year figures. The report also highlights just what difficulties employers are facing in recruiting key staff with both IT and broadcast skill sets.

IABM report February 2018

IABM is the broadcast and media technology international trade association and this report is a combination of public and private data from sources within the sector, looking at current issues and trends. One key trend shown is that SMEs are growing at a much faster rate than larger companies, which is the first time this has occurred in the past few years. During December 2017 there was a 1.2% increase in sales; however, profit figures actually slowed down. The profit figures for December 2017 ran at 75.9% when compared to profit figures from the previous December.

The report also highlighted a shift in buyer preference for software that runs in generic IT technology, as an increasingly competitive market and efficiency continually exert pressures on selling prices. Transition to the cloud and software is well underway, although hardware is continuing to be the primary source of revenues and profits, despite the reduction already noted in profit figures for December 2017. Some of the responses to the IABM survey noted that although hardware is their primary source for revenues, they actually make higher profits on software, as they can apply higher margins.

Looking ahead to the next 12 months of trading, it seems business confidence in likely success has declined from levels of optimism around 7.4 in mid-2017 to around 5.6 for respondents in December 2017. IABM noted this was quite low when compared to historic statistics, although companies selling software seemed significantly more confident than those that purely relied on hardware. IABM are fairly confident that 2018 will be a "spike" year with plenty of opportunity for growth, however.

As noted, recruiting can be difficult for companies operating in the broadcast media arena. Contact us to discuss ways in which our company can help you.


David Lawrence

Written by David Lawrence

David is the founder of Vine Resources.