MediaTech Radar
January
MediaTech Radar is a monthly newsletter put together by IABM’s Head of Knowledge Lorenzo Zanni. It focuses on a spotlight topic in MediaTech and reflects on a series of past, present, and future business developments in the industry. In this edition, our spotlight topic is CES 2023.
MediaTech Spotlight: CES 2023
A spotlight topic in MediaTech.
- IABM has today released a comprehensive report on the 2023 CES event, focusing on news and developments relevant to the Broadcast, Media and Entertainment industry. The full report can be read <<here>>. What follows is a brief summary of its key findings.
- Attendance: attendance at CES 2023 is reported as 115,000 – nearly three times the 2022 visitor number and is forecast to return to near-pre-pandemic levels (160,000+) in 2024. This reflects the trend first seen at IBC 2022 – a return to in-person events is clearly welcomed by many. A change in exhibition strategy, also first seen at IBC 2022, was evident – there was overall less product on show with more emphasis on face-to-face interactions.
- Smart TV: Smart TVs were front and center – external device developments were notably absent. This indicates an acceleration of the Smart TV platform race over the next few years, and advertisers, data users and Smart TV app developers will need to engage with a wider range of Smart TV platforms. Smart TV displays showed only incremental developments, though AI-driven automation of picture quality and modes is making its presence felt. Screen size and picture quality continue to be the key features to attract consumers.
- Audio: particularly delivered by soundbars – has become a differentiator for consumers, with developments on show at CES in discrete or virtualized audio channels and positional audio capabilities at the forefront to deliver a more engaging experience.
- Cloud gaming: constrained consumer spending may drive increased trial and subscription of cloud gaming services in the face of high entry costs of current-gen game consoles.
- AR/SR/VR: the technology has not yet reached mass adoption, with the gaming audience still the primary market in the consumer sector. Metaverse applications in retail, education and enterprise are however continuing to grow.
- OTT: very limited announcements; expect these to come at NAB Show and IBC later in the year.
MediaTech Watchlist: Content Investment, Virtual Production, Cinema and more…
A watchlist of selected past, present and future business developments in MediaTech.
- According to Ampere Analysis, global content investment will significantly slowdown in 2023 due to the darkening macroeconomic outlook – though it is still expected to grow by 2%. As a testament to this trend, content owners are clamping down on renewing programming with Netflix controversially cancelling popular shows just released such as 1899.
- A report by Altman Solomon shows that the popularity of virtual production continues to grow, though skills shortages still hinder its progress.
- Global box office revenues significantly recovered in 2022, though are still 35% behind the average of the last three pre-pandemic years (2017-2019).
- The UK government has abandoned plans to privatise Channel 4, though it may be given more commercial flexibility in the future, including the ability to produce and own content.
- S&P data shows that tech deals made globally in 2022 declined by 25.7% from the record $786 billion M&A activity seen in 2021, though the 2022 figure was still the fourth highest total in the history of the industry. The selloff in tech stocks caused by a gloomier macroeconomic outlook was the main driver behind the decline.
- A survey by Accenture reiterates consumers’ preference for aggregated entertainment experiences. 41% said they would pay for an all-in-one platform for their entertainment services with 61% reporting that they want the ability to share their streaming profiles across platforms to allow for better personalisation.
Thank you for reading this newsletter. If there are topics you would like me to cover or have information/ideas you’d like to share, please get in touch with us.
Lorenzo Zanni
Head of Knowledge
IABM