Broadcasters to increase tech spending this year

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Broadcasters plan to pump more money into technology this year, thanks to bigger budgets as a result of an advertising spending boom.

A six per cent rise in IT spending is on the cards for more than a fifth of respondents to a survey conducted by analyst firm Ovum.

Almost a third (31 per cent) of broadcasters expect their spending to increase by between one and five per cent.

This is good news for the broadcasting industry and could point to the beginning of a return to its former glory. Earlier this year, the BBC slashed its online services budget by 25 per cent.

The rosy outlook isn't just limited to 2011. A great deal of money will be spent on tech by broadcasters in 2012 too. Indeed, 17 per cent of respondents expect their 2012 tech spending to grow by more than six per cent and 36 per cent are hoping for a rise of between one and five per cent.

“Broadcast media markets are benefitting from a strengthening macroeconomic outlook and increased confidence, the near-term defensibility of broadcast advertising models and opportunities for multi-screen services. This is giving broadcasters the confidence to signal that they will be increasing their technology budgets sequentially over the next two years," said Adrian Drury, Ovum principal analyst and author of a report based on the survey's findings.

“According to the results of the survey, the top strategic technology investment priorities are to achieve further reduction in operational costs through a shift to file-based workflow and automation; the launch of new high-definition (HD) channels; advanced audience measurement and targeted advertising initiatives; exploitation of social media for audience acquisition; and the provision of multi-screen services."

By investing in these areas, broadcasters will be able to take advantage of new platforms such as tablets and smartphones, according to Drury.

However, the survey wasn't all good news. 3D broadcast content doesn't have a very bright future as it was ranked as the lowest priority area for investment by the majority of survey participants.

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