Pre-NAB 2023 Survey Findings

1. Media and Entertainment WHITEPAPER Pre-NAB 2023 Survey findings 54% vendors highlight sustainable IT to be an important procurement factor in the broadcast space.

2. Pre-NAB 2023 Survey findings: Trends and vendor roadmaps Overview SG Analytics’ (SGA) Media ICT team will be attending the NAB Show in Las Vegas in April 2023. SGA conducted a short survey of the vendors attending the show to understand the pivotal content supply chain enhancements to be showcased in the NAB Show. Furthermore, the survey was also to unveil the business priorities that will be addressed by vendors through these strategic ICT developments. Exploiting hybrid monetization avenues, streamlining enterprise-wide planning, & scheduling top priorities in 2023 As per the survey findings, more than one-sixth (17%) of the vendors revealed that building a hybrid monetization ecosystem is the top priority for their broadcast TV & video customer-base in 2023. This is in line with the changing industry dynamics with most subscriptions for TV & video services (e.g., Netflix, Disney+, Canal+) aggressively diversifying into an ad- supported revenue mix (i.e., AVOD, FAST). As margins come under pressure due to rising costs of content and customer acquisition globally, it has become imperative to build a multi- layered monetization ecosystem to remain the flagship priority in 2023. Furthermore, as faster time to market (TTM), and safeguarding profitability become the leading key performance indicators (KPIs) for enterprises in the broadcast TV & video segment, it paves the way toward: • Embracing remote production on IP (as highlighted by 11% of respondents), to not only improve cost synergies but also to exploit the global talent pool at scale. • Streamlining enterprise-level etc.) planning and scheduling respondents) to enhance operational efficiencies and lower long-term revenue leakages. (content, workflow resources, (15% of Figure 1: Top 3 business priorities for broadcast TV & video enterprises in 2023 17% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 15% 11% 11% 10% 10% 7% 6% 6% 4% 3% faceted TV & Improving data planning and engance TTM Utilization of Embarking on measurement and enterprise wide productivity via management to generative AI to scheduling on IP road-map next gen Converged hyper localization Expand multi- lowering workflow Revitalizing Streamline of experience Building hybrid touch points Unification of operational workflows and syndication insufficiencies search, discovery, monetization technologies avenues video engagement engagement remote production across content ecosystem sercurity Other Source: SG Analytics Pre-NAB survey (n=24; March 2023) 2

3. Pre-NAB 2023 Survey findings In today’s highly competitive and connected media era, broadcasters and content owners must build operational agility and deliver premium QoX (quality of experience). This has led to almost a third (31%) of respondents stating that: • Pre-configuration of next-gen technologies such as low code, cognitive services (AI/ML) across content supply chain • Safeguarding subscription business with lowering inefficiencies across search, discovery, and syndication workflow • Extend multi-faceted engagement touch points beyond core entertainment TV & video asset repository, such as video podcasts, betting, OTT news, short form, etc. The survey further showcased an unusual disclosure that none of the vendors surveyed believed that terrestrial to UHD (ultra-high definition) migration is one of the key business priorities for their broadcasting customer-base in 2023. Finally, almost 7% of respondents narrated that some of the other significant priorities for broadcasters are: • Building end-to-end cloud-based live production ecosystem • Moving broadcast studio and facility management on the IP • Leveraging cost-effective ERP (enterprise resource planning) workflows. Strategic ICT developments to improve operational productivity is on the rise The majority of media technology vendors are predominantly focusing on enabling enterprise users in the broadcast TV & video space to improve their operational efficiencies. This can be depicted from the new product launches and significant enhancements that the vendors are planning to showcase in NAB 2023 in April (refer Table 1 below). Furthermore, complexities are continuing to rise across the downstream content supply chain workflows, such as media production, distribution, and engagement, attributed to emergence of newer monetization avenues (FAST, metaverse, etc.), thus paving the way for vendors to extend and re- align their functionalities with the changing operational requirements. For example, one of the world’s leading media asset management (MAM) vendors will be introducing a centralized planning and scheduling workflow across multiple locations and systems in this year’s NAB Show. Table 1: Few strategic ICT developments across the content supply chain and sub-vertical to be showcased at NAB in April 2023 Cognitive services (AI) embedded MAM to accelerate content compliance at the origin of digital asset lifecycle Media Archiving - - - - - Unification of content planning & scheduling across multiple locations, and platforms (linear, production FAST, OTT, etc.) Generative AI to build hyper localized content repositories and experiences API-driven, native architecture for on-premises, and remote production workflows Over the Air (OTA) channels migration to OTT via Fast Hub Broadcast Streamlining pre- production resource planning Ultra-low Latency-centric cloud and 5G based live production Media Production Horizontal AI-based media distribution routing to lower packet loss on IP Predictive media distribution usage and cost analytics Content delivery Anywhere Every- where at scale Media Distribution - - - Single UI-based multiple OTT streaming services monitoring (from packaging to distribution) Cost effective personalized UI/ UX via TV app Framework SDK for customized OTT apps Real-time hyper interactivity-based engagement for enterprise video (town halls, new product launches, e-commerce, etc.) Multi-platform (AVOD, live, FAST) pre- configured applications at scale Premium QoP (QoS + QoE) via converged devices and data- based service management ecosystem Media Engagement - Real-time adaptive encoding depending upon network conditions via RIST Source Adaptation offering Vertical Time-bound Projects (sports, news, etc.) - - - - - Source: SG Analytics Pre-NAB survey (n=24; March 2023) 3

4. Pre-NAB 2023 Survey findings As live streaming is becoming a pivotal digital user- engagement format across non-media segments such as retail, healthcare, education, etc., some of the vendors are steadily building their capabilities across these micro-opportunities. Another example is white labelled solutions enabling ultra-low latency-based live streaming functionalities for both internal and external enterprise used cases such as workgroup meetings, town halls, new product launches, etc. Finally, as time-bound projects such as sports, news, betting, etc. continue to garner the attention span of most digital users globally, media technology vendors are working on launching newer modules to lower inefficiencies across both production and distribution workflows. These workflows roughly account for more than 40% of non-linear live TV & video total cost of ownership. Sustainable IT-based procurement adoption to surge within the broadcast TV & video space in 2023 Technology innovation roadmap, transparent pricing models, flexible deployment configuration (on premise, hybrid, cloud), wide partner ecosystem, and tier-I referenceable customer-base have always been the leading factors influencing the ICT procurement strategy within the broadcast TV & video space. Although traditionally broadcasters and content owners have followed a highly conservative technology procurement road map, we at SGA investigated the importance of sustainable IT adoption within this industry per say. More than half (54%) of media technology vendors believe that their existing customers and partners have a strong focus toward ESG-(environmental, social, and governance) based ICT purchase in 2023 i.e., sustainable IT-oriented vendors will receive preference in the next couple of years. This can be further validated with the rise in cloud and software-defined workflows enabling broadcasters and content owners to save energy expenses (lowering physical servers dependencies) along with accelerating environmentally friendly brand positioning. Figure 2: Importance of ESG-based IT procurement 4% 13% Extremely important Somewhat important 42% Neutral Somewhat not important 42% Source: SG Analytics Pre-NAB survey (n=24; March 2023) This still seems to be at a very nascent stage of adoption, attributed to almost the other half (46%) of technology vendors highlighting ‘neutral and somewhat not important’ factors for their customers and partners in this space. Finally, the broadcast TV & video segment continues to compete with digital native enterprises (such as Netflix, Amazon, etc.) along with safeguarding their linear TV & video business activity. Both upstream and downstream content supply chain upgrades and enhancements along with tight next-gen technologies (low code, cognitive services, microservices, cloud native architecture, etc.) are crucial for their competitive edge and sustainability in tomorrow’s connected economy. 4

5. Pre-NAB 2023 Survey findings About the Author Kedar Mohite • Vice President (Media & Entertainment ICT research & consulting practice) Kedar Mohite heads Media & Entertainment ICT research & consulting practice at SGAnalytics. He has been Principal Consultant with Omdia (Ovum) focusing on media & broadcast technology arena for over a decade. His area of focus includes media technology and ICT service developments across broadcasters, digital service providers, sports franchises, OTT, publishing, and enterprise video segments. Kedar is a regular speaker at IBC, NAB, and vendor-sponsored industry conferences, and his work has been cited by the BBC, Wired UK, IBC.org, and Business Wire. He holds a Master of Science in Business Administration degree from the Norwegian School of Management BI. Disclaimer This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by SG Analytics (SGA) and is not intended to represent or get commercially benefited from it or imply the existence of an association between SGA and the lawful owners of such trademarks. Information regarding third-party products, services, and organizations was obtained from publicly available sources, and SGA cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an endorsement by or of any third party. Copyright © 2023 SG Analytics Pvt. Ltd. www.sganalytics.com GET IN TOUCH Pune | Hyderabad | Bengaluru | London | Zurich | New York | Seattle | San Francisco | Austin | Toronto 5