According to the report, Macro headwinds have negatively affected business confidence and M&E business models, leading to cost-reduction initiatives.
IABM has released its latest State of MediaTech Report at NAB Show 2023, which is based on quantitative and qualitative research and surveys carried out by IABM’s Business Intelligence Unit over the preceding months, and gives an authoritative overview of the state of MediaTech from both media company and vendor perspectives.
Key findings of the report are reducing business confidence due to macro headwinds; cost-reduction initiatives at media business in the face of inflation; and scarcity – particularly of labour – which is still affecting the industry.
The business confidence index now has Macro Headwinds as the top concern as the economic outlook darkens, jumping from fifth place in 2021 and third place in 2022.
Macro headwinds such as inflation have already negatively influenced M&E business models, including ad-funded, subscription-based and content models. This environment has driven cost-reduction initiatives at media businesses and also influenced MediaTech investment.
Interestingly, while macro headwinds undoubtedly represent a major challenge for MediaTech businesses in 2023, they are also seen as an opportunity by some; this was well captured by one of the comments we received in response to our survey: “This [current macro climate] could prove to be an opportunity to those of us that can help fill in for missing resources.”
Lorenzo Zanni, IABM Head of Knowledge, said: “This report validates the anecdotal negative commentary we have been seeing over the last few months. The industry faces a tough set of headwinds over the coming months as the economic outlook continues to darken and investment is curtailed. However, as our report on how the industry fought back during and following the Covid pandemic shows, the Broadcast and Media industry is both resilient and very adaptable, and these core strengths will again come to the fore in pushing forward until brighter times arrive.”
