Distributors Survey: Staying afloat in choppy waters

Consolidation has had a clear impact on the distribution sector over the past year, and companies in the business of supplying content to broadcasters and streamers around the world have felt the pinch.

Bucking this broader trend – which is particularly evident among the bigger players - is BBC Studios, which has notably reported a near-20% uptick in revenues. For others, it has been a case of trying to maintain stability in an industry that continues to face choppy waters.

Broadcasters’ budget cuts and streamer scrutiny on ROI are impacting the types of acquisitions buyers are prepared to make. These factors are also squeezing supply, and distributors of all sizes note challenges around securing pipeline.

Despite this, there are signs that boutique operators are still able to grow their businesses, providing bespoke solutions for producers and their IP. Aiding that process are buyers whose risk appetite means they’re increasingly looking to partner up to manage investment levels.

YouTube – but also social video more broadly – continues to grow in importance. Almost all companies view the Google-owned platform as a key partner, and for those with operations of considerable scale, it will offer ongoing returns that are almost all margin.

Opportunities across social are helping to grow the reach of smaller firms’ IP into bigger properties, but its impact is perhaps best evidenced by BBCS revealing that it now reports social video revenue as an individual line in its accounts. Times are tough but such developments point to meaningful areas of opportunity, something the sector will hold onto and look to grow.

• Richard Middleton, Broadcast head of content, international