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Articles Aug 29th, 2019

How do you adapt your media business model?

business, capex, IABM, Media, opex

The IABM’s recent Buying Trends Report shows that when it comes to technology IABM members are shifting from a CAPEX to an OPEX model, which is something that we agree with. For some small-medium enterprises, moving to an OPEX model minimises investment risk by funding growth through operational revenue. However, in our experience service providers or large media companies who adhere to a four-year business plan still prefer a CAPEX model where they can directly manage the ROI and help to increase the EBITDA. At Tedial we can adapt to our customers’ commercial model by offering either a OPEX or CAPEX model.

This IABM report continues to highlight that the media industry is rapidly changing. Not too long ago we were working in a black box technology environment, now it’s a professional software services market. Infrastructure is moving to the cloud or to private data centres, and IP based technologies are facilitating the integration of remote devices and locations into everyday workflows. Manufacturers are having to transform their companies into businesses that provide a variety of different ways to access and use their services, which are geared to the customers business and operational requirement.

This means that traditional hardware device manufacturers must restructure their business models. Twenty years ago when the industry was transitioning to digital, we used to have big volume projects with a long term investment. Now the projects are smaller and fulfil specific business requirements. Every company has already invested in the big digital system and now the projects focus on external infrastructures. If you’re a media company your current projects are likely to be focused on how the current quality of service and future growth can be achieved with the minimum investments in additional equipment/infrastructure and personnel.

It is well documented that in the future, media companies will need to be more efficient to reduce costs. For that they need to invest in technology that automates their operations and reduces operational costs, which is where the OPEX model comes in.

Tedial delivers a variety of solutions that provide a combination of features to optimize operations and content management at all levels. These ensure that what is delivered efficiently meets each customer’s business and operational requirements.

To find out more come and see us at IBC 2019 on stand 8.B44.

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