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Articles Jan 10th, 2019

How is the Industry Transforming from a Business Perspective? By Esther Mesas CSO/CMO, Tedial

2019, broadcast, capex, industry, ip, ip workflows, Media, opex, UHD

mam media business

The media industry has changed dramatically, first transitioning from analogue to digital, then SD to HD and UHD, and then SDI to IP. Add the shift in consumer habits to these technological milestones and you have an almost unrecognisable entity compared to the one that existed only 15 to 20 years ago. With these significant changes, how do businesses ensure that they can continue to grow and evolve?

We’re seeing a mature market in a transition environment, which means that there’s a reluctance to invest in infrastructure and MAM (media asset management) technology. Broadcasters and media companies know how technology will evolve but they don’t know how their businesses will, which means it’s difficult for them to take long term decisions. Also, traditional broadcasters’ revenues have reduced considerably, which means budgets have slashed. They need to operate more efficiently and streamline their costs. The large long-term investment projects of the past are becoming scarcer, and projects that fulfil specific business requirements such as externalising infrastructure to reduce costs are more and more commonplace.

Investing in technology that automates operational processes is a move in the right direction. For small-medium companies, moving to an OPEX model eliminates the risk of investment as they pay-per-use. 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 an OPEX or CAPEX model.

With all this in mind, what business challenges does the industry face going forward? We now have a professional software services market. On one hand infrastructure is moving to the cloud or to private data centres, and on the other hand IP-workflows facilitate the use of remote devices. Vendors need to accept this reality and transform their company into a business that provides services as an external infrastructure or offers software-as-a-service.

Companies must also adapt to changes in consumer habits. Sport, which is the only television genre that’s growing, is a classic example of this. The business challenge for sports broadcasters is the capability of providing additional content for the second screen instantaneously. Let’s take premiere league football as an example. Five minutes after a goal is scored the price of the images decrease dramatically, which means that you can’t afford delays. At exactly the same time you’re watching the ball hit the back of the net you need to have all the comments and the edit on the second screen. This is a huge challenge and one that Tedial has successfully tackled and can help broadcasters overcome.

What will Tedial be up to in 2019? We’ll continue assist broadcasters and media companies address today’s business challenges. Our solutions automate our customers’ operations helping them to increase efficiency and reduce manual operations. Our technology is always evolving and we’re constantly adding functionality to adapt customer operations to present and future visions. In turn, this enables our customers to adapt their solutions, systems and operations to meet new and emerging market requirements.

The entire Tedial team wishes you and those you love health, peace and prosperity in 2019.

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