Chin up, growth to return after slowdown

It would seem that after several good years of growth and profitability the broadcast, production and post sector will find things much tougher next year. Fortunately, the ongoing demand for media technology products and services will still enable the industry to grow but suppliers will need to be very market savvy and be prepared to adapt quickly in order to make the most of the opportunities out there.

After two years with growth rates in double digits the broadcast and media technology sector will see single digit growth through 2009/10 according to the International Association of Broadcast Monitors (IABM) Global Market Study released during IBC Amsterdam recently.

Revenues are forecast to grow at seven per cent in 2009 and nine per cent in 2010 before going back into double digits in 2011 and beyond. Over the four years ahead the compound annual growth rate (CAGR) is forecast to be 9.8 per cent demonstrating that the sector will outperform the major economies.

In 2008 the global market for hardware, software and system products is worth some US$15.1billion with a further US$1billion accounted for by the added value from resellers in the sales channel. The services segment is worth another US$9.5billion when all of the technology services revenues are taken into account. Overall this means that the whole broadcast and media technology business is worth some US$25billion on a global basis.

Europe, Middle East and Africa now accounts for almost half of the entire market in 2008 (49 per cent) with the Americas having 35.5 per cent and Asia Pacific 15.5 per cent. Over the forecast period through 2012, Africa and China will have the fastest growth rates at over 19 per cent (CAGR) compared to Western Europe and Japan which will only see five per cent growth over the same period.

In the period 2008-2012 four key segments are predicted to grow at more than 10 per cent (CAGR) and these are services; post- production; audio; and the content and communications infrastructure. The message is clear for the industry. Ride out this rocky times and there are rewards to be gained at the end.