The pandemic-era challenges that the M&E industry has navigated in the last two years have better equipped it to handle unexpected curve balls. Remote workflows, for instance, have become more accessible and delivered new efficiencies, and will continue to play a crucial role in the development and delivery of most media and entertainment this year. The year is expected to continue on an upward projectile with creative technologies emerging constantly to accommodate a drastically changed broadcast environment brought on by the pandemic. Distributed collaboration, alongwith remote work are paving the way for greater innovations. This will positively affect the rest of the chain, where we will see greater efficiencies, cost savings in the production and delivery of great content.
As the adoption of cloud, IP and virtualization gains traction, the industry will begin to look for and buy solutions instead of products. Vendors will begin to offer new virtualized microservice or VM software to replace legacy systems, and broadcasters will have to look at future-proofed investments that can evolve as they do.
The increase in programming delivered over IP will continue in 2022. News coverage, TV shows and films have accounted for the most significant growth, but the use of streaming services for video games, computers, podcasts, listening applications like audible books, and consumer-produced media has escalated substantially as well.
AI is becoming more and more central to many workflows, and it will be interesting to see how it helps increase the efficiency and the scope of automation through the year. We also expect to see further standardization when it comes to media platforms and cloud-based workflows, which will result in a definite increase of the latter. Customers are looking for technology partners that can support them in a fast-changing marketplace
The global broadcast and media technology market is estimated at USD 41.4 billion in 2021. At a CAGR of 6.9 percent over the next five years, it is poised to reach USD 62.12 billion by 2027.
The key drivers are the growing adoption of smartphones, tablets, laptops, and computers, especially in emerging economies, with rising disposable income and increasing tech-friendly population. Additionally, the availability of high-speed internet, emergence of next gen connected devices, and penetration of artificial intelligence provide the requisite impetus. Asia Pacific accounts for a significant share in the market. The rising number of media houses in India are anticipated to boost the market growth in the region.
The TV and radio broadcasting market are estimated at USD 374.55 billion in 2021. At a CAGR of 7.1 percent, it is poised to reach USD 401.25 billion in 2022. The market is expected to reach USD 504.0 billion in 2026 at a CAGR of 5.9 percent.
Asia-Pacific is the largest region in the television broadcasting market, accounting for 29.1 percent of the total in 2020. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the television broadcasting market will be Africa and the Middle East where growth will be at a CAGR of 11.1 percent and 10.2 percent respectively during 2021-2025. These will be followed by South America and Eastern Europe, where the markets are expected to register CAGRs of 8.9 percent and 5.8 percent respectively during 2021-2025.
Companies in the television broadcasting market are increasingly merging with other companies to improve financial strength and expand the geographical presence of their company. For instance, Byron Allen’s Allen Media Group division, Allen Media Broadcasting acquired broadcast television station KITV from SJL Broadcasting for USD 30 million. Allen Media Broadcasting company also acquired 11 broadcast television stations from USA Television MidAmerica Holdings LLC and USA Television Holdings LLC for USD 305 million.
Zee Entertainment Enterprises Ltd.’s (ZEEL) acquisition of the General Entertainment Broadcasting Business of Reliance Big Broadcasting Private limited, Azalia Broadcast Private Limited, and Big Magic Limited, all part of Reliance Group (ADA Group) is another instance.
Of the total market, the radio broadcasting market is expected to grow from USD 125.39 billion in 2021 to USD 133.55 billion in 2022, at a compound annual growth rate (CAGR) of 6.5 percent. Western Europe is the largest region and Eastern Europe expected to be the fastest growing one.
Major companies in the radio broadcasting market include Liberty Media Corporation, Sirius XM Holdings Inc, iHeartMedia Inc., The Walt Disney Company, Bouygues SA, Entercom Communications Corporation, Cumulus Media, Inc, Fuji Media Holdings Inc , Netease Inc, Nine Entertainment Co., and Holdings Limited.
The growth in the TV and radio broadcasting market is mainly due to the companies rearranging their operations and recovering from the Covid-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The rise in demand for VR content is expected to drive the TV and radio broadcast growth going forward.
Companies are deploying technologies to allow users to access their content on mobiles and website portals. Access to various platforms and devices has increased over demand for the services.
2022 is expected to be a good year. Technology will continue to play a dynamic role in fundamentally improving economics and redefining the business ecosystem. The focus of broadcasting companies is on exploring new technologies and business models that foster enhanced deliveries and a deeper understanding.
The media industry has already been transformed by several waves of digitalization. Digital transformation of the media industry puts greater power in consumer’s hands by allowing viewers to watch content at their own convenient time instead of watching content at scheduled times.
To thrive, media enterprises will have to keep technology at the heart of what they do, helping them create compelling content and reach new audiences.