Rising investment in new technology revolutionizing legacy broadcasting in MENATuesday, December 5th, 2017
Rising Investment in New Age Technology Revolutionizing Legacy Broadcast Systems in MENA
- Service providers need to invest in new solutions to keep up with rising multiscreen adoption and market demands, finds Frost & Sullivan’s Digital Media team
DUBAI, United Arab Emirates — In MENA, the television industry is evolving in terms of content and business models for over-the-top (OTT) and Pay-TV. Broadcasters will adopt technologies to provide an enhanced user experience in the rising competitive landscape. Technology solutions that address the evolving requirements of broadcasters and that integrate with legacy systems are gaining importance. Sports will remain the major driver for adopting Pay-TV services in the region, promoting the adoption of cloud services for faster live broadcast. Broadcasters must adopt advanced technologies to increase productivity and encourage workflow optimization through IP-enabled automation solutions. Experimenting with solutions to deliver multiscreen hybrid viewing that addresses low-bandwidth usage could further augment players’ competitive advantage.
Frost & Sullivan’s research, Technology Adoption Trends in the MENA Broadcast Industry, 2016–2021, finds that major investments in the next five years will be directed toward the digitization of workflows, multi-screen play out and delivery, demand for improved compression techniques, and transition to high definition (HD). The study assesses key technology vendors, growth opportunities, trends, drivers, challenges and restraints, and technology adoption among industry stakeholders.
“Broadcasters are plagued by falling advertising revenues, a rich free-to-air offering, and the additional pressure to launch OTT services to remain competitive,” said Digital Media Research Analyst Aafia Bathool. “New OTT platforms are emerging with high-calibre content encryption solutions seeing higher demand, while convergence among other participants is streamlining operations and optimising costs for producers.”
To remain relevant in the evolving MENA broadcast industry, technology players should harness critical success factors, such as:
- Cloud deployment in broadcasting to enable broadcasters to produce content anywhere and at any time;
- Rise of UHD and 4K content to accelerate growth of 4K TV sales and support technology such as transcoding, content protection, and high-definition 4K to cater to evolving customer demands;
- Developing high-technology solutions to protect distributions across platforms from piracy and illegal distribution; and
- Collaborating and forming strategic partnerships with international technology vendors and local distributors to ramp up technology solution investment.
“Although advanced broadcast technology solutions are available, the prevalence of legacy systems and lack of technological skills for new systems is slowing the adoption of new technologies,” noted Bathool. “There will be a gradual move from hardware-based solutions to cloud-based platforms, allowing for significant digital transformation of the MENA broadcast industry through 2021.”
Technology Adoption Trends in the MENA Broadcast Industry, 2016–2021, forms part of Frost & Sullivan’s Digital Media Growth Partnership Service program.
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