This article is from The IABM Business Intelligence Digest from September 2018. The full report can be viewed here The preliminary results of our latest Supply Trends Survey show an industry that remains in flux. As media companies continue to migrate to direct to consumer models, technology demand is shifting towards Opex-based solutions that hinge on the flexible provision of software. Although hardware remains the principal revenue source in the industry, its overall contribution is declining as more technology suppliers move to software. What’s more striking, however, is the outlook with regards to software payment models: permanent licences are down compared to subscriptions and consumption-based revenue models, which are on the rise. These interesting findings are illustrated in our chart below: The transition to flexible software models has far-reaching implications for media technology suppliers, ranging from revenue growth to marketing strategies. For example, media technology suppliers are spending less money on tradeshows as they move to the (online) recurring revenue models mentioned above. According to our data, the average percentage of marketing budget allocated to tradeshows has declined by about six percentage points to 38% while 79% of companies told us that their budget for these events is stable or...
Supply Trends: The State of Media Technology
Lorenzo Zanni Head of Insight & Analysis, IABM The preliminary results of our latest Supply Trends Survey show an industry that remains in flux. As media companies continue to migrate to direct-to-consumer models, technology demand is shifting towards Opex-based solutions that hinge on the flexible provision of software. Although hardware remains the principal revenue source in the industry, its overall contribution is declining as more technology suppliers move to software. What’s more striking, however, is the outlook with regards to software payment models: permanent licences are down compared to subscriptions and consumption-based revenue models, which are on the rise. These interesting findings are illustrated in our infographic below. The transition to flexible software models has far-reaching implications for media technology suppliers, ranging from revenue growth to marketing strategies. For example, media technology suppliers are spending less money on tradeshows as they move to the (online) recurring revenue models mentioned above. According to our data, the average percentage of marketing budget allocated to tradeshows has declined by about six percentage points to 38% while 79% of companies told us that their budget for these events is stable or declining. With regards to revenue growth, the transition to recurring revenue models presents...
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