11.27.2007 11:14 AM
North American, Western European broadcasters to spend $8.7 billion on technology by 2012, Datamonitor says

Digital workflows, HD and traditional IT infrastructures are ushering in a significant transformation of the broadcast value chain, according to independent market analysis firm Datamonitor.

This transformation, which is creating immense challenges and opportunities for broadcasters as they fight to adapt to multichannel and multiplatform distribution, presents a clear market opportunity for technology vendors and systems integrators in the near term.

In a new report, “The Evolving Broadcast Value Chain, 2006-2012,” Datamonitor predicts that broadcasters in North America and Western Europe will spend an estimated $8.7 billion on technology by 2012. Between now and 2012, the market will experience compounded annual growth of 6.4 percent, said Chris Khouri, Datamonitor’s media and broadcasting analyst and the report’s author.

HD is responsible for many of the challenges facing broadcasters. One is the integration of HD capabilities with SD infrastructures. The use of multiple new signal formats is a major issue with the move toward a hybrid infrastructure, with broadcast facilities forced to handle a plethora of audio, video and aspect ratio formats, according to Datamonitor.

Moving toward a hybrid infrastructure will require the careful re-evaluation of current workflows. As broadcasters look to transition toward SD/HD infrastructures, there will be strong opportunities for those technology providers and integrators that can address the challenges presented with multiple formats, the market analysis firm said.

For more information, visit www.datamonitor.com.

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