How Subscription Models are Reshaping Broadcast Technology Decisions
By Adam Noyes
Avid is a valuable tool in the broadcasting and post production space. Now their stable of products has given broadcasters and creators the ability to work remotely, lower costs, and operate more efficiently.
Check out some highlights from this article from avidblogs.com to learn more.
Lower Costs
Technology is a massive cost center—absolutely necessary, but a cost center nevertheless. It’s also one of the hardest budget items to argue for in tough economic times: if the tech still works, can’t an upgrade wait? The SaaS model lets you mitigate some of those costs by incentivizing multiyear subscriptions, but even yearlong or month-to-month subscriptions can save money.
A subscription model will automatically upgrade as long as you’re subscribed. That circumvents any need to ask for more money to invest in the latest upgrades, or, in the worst-case scenario, missing out on some of the new features that your competition already uses to great effect.
Flexibility: Technology
The broadcast technology landscape tends to change rapidly, so predicting needs even a year out can be difficult. With that said, it might seem odd to recommend looking into multiyear software subscriptions. However, a SaaS model provides faster access to new releases and a much quicker activation process.
Flexibility: Scale
TV viewership is on the rise, according to Nielsen figures reported by Broadcasting & Cable. But this demand doesn’t always translate to a lift in bottom lines; you may need to be prepared to meet that demand with fewer resources.
A software subscription can maximize the use of licenses for colleagues, not just in-station but also for those working remotely. No more buying individual licenses that go unused if the team shrinks. The economics for this kind of scaling up—or down—makes a compelling case for our current times.
Compatibility across Organizations
A 2019 EY report says mergers and acquisitions are a key focus for executives in the media and entertainment industry this year, according to IBC. This comes after broadcast TV M&A hit $8 billion in 2018, according to FierceVideo. While the pandemic may affect priorities, M&A will remain a fact of industry life and come with their own set of operational hurdles, like getting everyone on the same system. For example, when Sinclair bought 21 regional sports networks in 2019, that meant integrating thousands of new employees into existing systems. This can be a particular challenge for broadcasters, who generally work across multiple departments with tech that may have been acquired ad hoc, without a cohesive strategy.