Market Insight

COVID-19 in media technology: Productivity, business certainty, and resource utilization will be the top three priorities in 2020

April 09, 2020  | Subscribers Only

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Omdia’s ICT Enterprise Insights 2019/20 survey revealed that multiscreen UX/UI personalization, lowering content supply chain total cost of ownership (TCO), time to market, operational excellence, and accelerating profitability are the top five business priorities for almost half (49–55%) of media enterprises in the next 12–18 months. Although these priorities are still vital globally, the COVID-19 pandemic has shifted the dynamic toward a focus on embedding media technologies that will enable operational excellence, higher resource utilization rates, and business continuity for the next 18–24 months. This will slightly decelerate growth in traditional capex-based technology investments in the short term, but Omdia believes that the overall ICT spend across the media and entertainment segment will fall to 7.1% and 6.7% of total global revenue for the next two years respectively, against previous estimates of 8.2% and 7.9% made in January 2020. Profitability margins will come under pressure, but the pandemic opens newer monetization avenues across noncore markets such as enterprise video (education, healthcare, government surveillance, and logistics asset tracking), offsetting a sharp downturn in overall media ICT spend due to live-business uncertainty (reduction in sporting events and capex investment in local and regional news coverage).

Research by Market
Mobile & Telecom
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