More than half of broadcasters to increase technology spend in 2011

MELBOURNE, AUSTRALIA: More than half of pay-TV operators, broadcasters and studios plan to increase their investment in technology in 2011 thanks to strengthening advertising spend and renewed confidence in the outlook for the sector, according to an Ovum survey.

The independent technology analyst interviewed 150 senior IT and production technology executives at major public and private broadcasters in Europe, North America and Asia-Pacific to gain insight into investment priorities for 2011.

In Asia-Pacific, 41 percent said they plan to increase their IT, production and distribution technology spend by over 6 percent in 2011. Meanwhile, a further 23 percent plan to grow this expenditure by between 1 percent and 5 percent over the course of the year. The trend is set to continue in 2012, as 26 percent of the respondents indicated they would increase budgets by more than 6 percent, with a further 43 percent saying they would ramp up spending by between 1 percent and 5 percent.

Adrian Drury, Ovum principal analyst and author of a new report unveiling findings from the survey, said: “Globally broadcast media markets are benefitting from a strengthening macroeconomic outlook and increased confidence in the near-term defensibility of broadcast advertising models, and opportunities for multi-screen services. This is giving broadcasters the confidence to signal that they will be increasing their technology budgets sequentially over the next two years.

“According to the results of the survey, the top strategic technology investment priorities in Asia are to achieve further reduction in operational costs through a shift to file-based workflow and automation; exploitation of social media for audience acquisition; the launch of new high-definition (HD) channels; and advanced audience measurement and targeted advertising initiatives."

Drury added: “These investment areas represent the strongest opportunities for earnings growth for both pay-TV operators and channel programmers in the region. It will also enable broadcasters to exploit the growth of smartphone and tablet penetration, social media usage and the availability of return path data. In line with the global trend, the lowest priority for survey respondents across Asia was the production of 3D broadcast content and the launch of 3D channels.”