Audio Technology Business Report: Strategic Drivers of Change

About this Report

The Audio Technology Business Report aims to identify major strategic drivers of change in the audio technology business. The purpose of this report is to enable companies to discover emerging trends in the audio technology sector, including buying, selling and technology development trends.

Report Methodology

The information analyzed in this report was derived by both quantitative and qualitative research carried out by IABM. The primary sources used in this report are:

• Quantitative Evidence: Public and private financial data of audio technology buyers, such as radio stations, gathered and analyzed by IABM
• Qualitative Evidence: Expert interviews with audio technology businesses carried out by IABM as well as survey evidence gathered by IABM

We use both these pools of information as well as variety of secondary sources – including news, announcements, earnings calls, technology material etc. - to provide users with a comprehensive account of the status of the audio technology industry.

Report Content

This analysis was undertaken by the IABM Insight & Analysis team. The contents of this report are divided into the following three macro-sections:

• The Audio Technology Market
• Primary Buying Groups
• Sector-Specific Trends

Executive Summary

This section includes the main highlights of this report accompanied by the most relevant data visualizations. Key findings of this report are as follows:

The Audio Technology Market

• The audio market is undergoing a radical transition with a variety of trends having an impact on demand for audio technology 
• Most vendors interviewed for this report highlighted that the transition to AoIP is a question of when rather than if. However, adoption of AoIP has been slow with most broadcast and media organizations adopting a hybrid approach to deployment
• AES67 is seen as a positive development by most suppliers although most highlight that some challenges such as discovery need to be addressed. The deployment of multiple standards is common at users’ organizations although Dante has grown significantly in recent years
• Drivers of AoIP deployment include efficiency, flexibility, remote production and immersive audio
• Virtualization and automation of audio workflows were highlighted as the next big thing in audio technology according to interviews carried out for this report. While virtualization is at an early stage of development, it is a major focus going forward
• Immersive audio was the third most important priority highlighted by research participants. This is a key area of interest for suppliers, though adoption by customers is low and still in the “education” phase
• Many companies interviewed for this report highlighted how they had to develop new audio products, most of which are simpler and more cost-effective, as a result of customers’ changing requirements and skillsets
• The rise of streaming platforms and content investment is having a huge impact on audio technology, with OTT players being increasingly seen as the trend-setters by audio technology suppliers
• As the industry increasingly leverages data throughout the content chain, technology users are demanding solutions that take data into account
• Most companies interviewed for this report highlighted the competitive nature of the audio technology market, which has led to price compression and product differentiation
• The adoption of multiple standards for AoIP has prompted suppliers to boost R&D investment to support these standards and is driving premium pricing for hybrid deployments
• Some companies have also targeted emerging adjacent verticals as competition has prompted them to launch more cost-effective offerings
• Regional and cyclical drivers of audio technology spending include the transition to next-generation terrestrial formats and digital radio as well as the spectrum reallocation in some geographies. These drivers have significantly increased revenues for suppliers in specific regional markets and sectors