MediaTech Radar
November 2022
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 MediaTech Disconnects.
MediaTech Spotlight: MediaTech Disconnects
A spotlight topic in MediaTech.
IABM’s BaM Live London™ 2022 will take place on 1st December in the Park Plaza Victoria Hotel and will focus on “Closing the disconnects in MediaTech.” We will examine disconnects between demand and supply of MediaTech with speakers from both sides of the industry. Below, I have tried to distil some thoughts and insights on the disconnects we are going to cover (in the chronological order of the day) to provide a preview to readers:
Sourcing (In or Out?): This session will focus on the perennial sourcing dilemmas between insourcing and outsourcing as well as between best-of-breed and end-to-end. These two dilemmas are often related as the preference for best-of-breed tech is a significant driver of insourcing investment at media businesses. IABM research shows that insourcing investment by media businesses has grown in the last two years. Is this the new normal in an industry increasingly dominated by as-a-service technology?
Standardization (Structure or Chaos?): As the speed of change increases, many media businesses we talk to have lamented that this has severely outpaced the speed of standards development. One told us: “Standards are great, but they often take years by which point we've often moved on as a company because we need things quicker.” Others point out that many standards are now outside the control of the industry, which should get used to chaos. However, the need for interoperability is not going away. Do we need to rethink standards?
Buying (Native or Washed?): This session will focus on the motivations behind technology investments. Are these being communicated to suppliers effectively? Or are suppliers failing to communicate their message to buyers? The industry still seems disconnected on the adoption of cloud operating models, a mantra for some though a threat for others. Sustainability is rising in buyers’ agenda though are suppliers’ solutions meeting their needs? Not to mention AI/ML: is the industry really investing in it as much as it talks about it?
Transformation (Evolution or Revolution?): The last session of the day will focus on business transformation, and the importance that people (skills and culture) play in enabling it. Why is talent scarcity a rising issue affecting MediaTech? What skills does the industry need and how can it attract them effectively? And what about culture: does the industry need to borrow values from the “move fast and break things” digital mentality or should it evolve towards digital clinging to its traditional mindset?
MediaTech Watchlist: M&E Skills, Virtual Production, Newsbridge and more…
A watchlist of selected past, present and future business developments in MediaTech.
This interesting Financial Times article (requires subscription) focuses on skills shortages in the film and television industry in the UK. As the sector is mostly freelance-driven and dependent on job seekers’ personal networks, it is struggling to attract talent from outside despite the allure of creative storytelling. The article also cites working culture as another big issue disincentivizing younger generations to enter the industry. Consistent with this, behaviours such as bullying and propensity to do long hours have persisted since the pre-pandemic period according to the latest Looking Glass Survey. These are indeed all variables to consider for employers in the sector when trying to facilitate the influx of new talent in the industry. IABM will focus on skills and culture in MediaTech in the Transformation session at BaM Live London™ 2022.
A new £25.2m virtual production studio is set to open in Belfast in 2024. The 57,000 sq ft building is yet another sign that investment in virtual production is on the rise, as reported by one of our previous newsletters. IABM published a Briefing focused on virtual production in October 2022.
Newsbridge raised €7m in Series A funding to continue its expansion in the US and focus on recruiting top AI/ML talent. Newsbridge has stated that it has doubled its recurring revenues in the last 12 months with new customers including some European football clubs.
The plan to merge TF1 and M6 in the French market was abandoned in mid-September amid competition concerns. German media group Bertelsmann initially searched for new buyers but then called off the sale of M6.
In a previous newsletter, we talked about the growth of the Creator Economy and its implications on MediaTech, which were also covered in one of our Briefings. As part of the briefing, we argued that the growth of the Creator Economy “might lead distribution platforms to increasingly compete for talent through better monetization tools.” Social distribution platforms such as TikTok have indeed gone beyond that, starting to pay creators directly to lure them in, and putting pressure on platforms such as Patreon that provide them the tools for fan engagement and monetization. This, along with the retreat from investment in tech stocks mentioned earlier, led Patreon to cut 17% of its staff in September 2022. If you are interested in the Creator Economy as I am, do watch my interview with Patreon at IBC 2022.
In September 2022, ProSiebenSat.1 Group announced it would acquire the remaining 50% of Joyn, a German streaming service, from Warner Bros Discovery. ProSieben plans to: “place a sharper focus on interaction with and between users and community management. Therefore, we are integrating our streaming platform more closely with our influencer business and our brands from the Dating & Video and Commerce & Ventures segments.”
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