According to its latest quarterly Industry Trends Survey, the International Association of Broadcasting Manufacturers (IABC) reports that confidence is at an all-time high among its members. The IABM is the international trade association that represents suppliers of products and services to the broadcasting and media technology industries.

The main reason cited for supplier optimism is the worldwide transition to HD. Per the survey, more than 73 percent of respondents had increased long-term confidence levels on business prospects, a rise of 18 percent from the prior quarter's survey (third quarter of 2006).

The quarterly trends analysis is undertaken by Ernst & Young analysts on behalf of the IABM. Nearly 60 suppliers from around the world participate in the survey. Senior decision-makers respond from such leading firms as Apple, Avid, Grass Valley, Harris, IBM and Sony.

"The global transition to HD is picking up momentum as broadcasters and content production companies systematically upgrade their equipment to HD standards, even if they do not plan to broadcast HD in the immediate future," said IABM chief executive Roger Crumpton. "Our research shows that HD uptake will be fueled by increased competition between pay TV operators across all three platforms: digital cable, satellite direct-to-home (DTH) and IPTV.

Global View

Crumpton assessed, "HDTV is reaching a tipping point; spurred by the high-profile launch of HD in Europe, HD is now reaching the mass market in the United States. Technology-driven markets such as the Middle East have rapid HD uptake with Al-Jazeera being the first news channel in the world to broadcast entirely in HD."

The Asian broadcast and media technology industry expects to grow dramatically as China prepares itself for the 2008 Olympics in Beijing with China's state broadcaster, CCTV, having an estimated $600 million budget for '07.

The Industry Trends analysis showed that Asia has regained its place as the third most active global market, behind Western Europe and North America. Eastern Europe has risen to fourth place and the Middle East returned to the fifth position.

Increased short and long-term confidence levels are reflected in the volume and value of fourth quarter '06 purchase orders with just over 41 percent of suppliers reporting better or much better than expected order volumes. This figure is up five percent from the third quarter and 13 percent as compared to the second quarter of last year. Manufacturing and development capacity was cited as the biggest single factor limiting order fulfillment.

Investing In Staff, R&D

More than 50 percent of respondent suppliers expect to increase employee numbers in the next quarter.

"Demand for specialist staff in a growing market coupled with changing technology is creating a skills bottleneck," observed Crumpton. "The IABM is working with its members and others to address personnel requirements."

Confidence in the marketplace is also driving big-picture investment on the part of suppliers. Sixty-three percent of respondents anticipate increased research-and-development expenditures over the next 12 months.

The IABM's goal is to identify and promote the interests of its membership and to provide benefits and services that enhance their business performance. Last year the IABM celebrated its 30th anniversary. The group plans to move forward with an agenda that includes industry representation, executive networking, preferential purchasing and the provision of information and advice services for its constituency.

The IABM will have a booth at the National Association of Broadcasters Convention in Las Vegas, April 14-18. IABM representatives will be on hand to support members. For info on the IABM, visit www.theiabm.org .

Reported in Shoot Magazine March 23, 2007