Markets served

Vitec operates with a two market strategy:

Broadcast
We provide high quality, branded equipment for broadcasters, cinematographers and independent content creators.

Photographic
We provide a complete range of innovative branded accessories for professional photographers, photographic enthusiasts, social recorders and independent content creators.

Broadcast
market

Vitec supplies broadcasters, cinematographers and independent content creators with a variety of products and services to assist in the capture and transmission of video images.

The Broadcast market comprises products and services used in the production of content for broadcasters and cinematographers, whether in studio or on location. The growing professional video segment includes products and services used in the production of video by independent content creators including education and religious establishments, corporate entities and governmental bodies.

We estimate that the Broadcast addressable market for products and services supplied by Vitec is worth around £880 million annually. This includes the traditional broadcast and film markets as well as the video production market. Vitec is well positioned due to its broad geographical reach and premium products. We have a global sales team that provides strong international coverage and is able to offer a full range of products and services to our customers all over the world. This market has seen some variability in demand in 2015 with declines in the traditional broadcast studio segment and growth in video production by independent content creators.

Increase in video
There has been a significant increase in the amount of video being shot globally. This has been stimulated by the ease with which independent content creators can capture, edit and distribute content, for example over the internet and the rise in popularity of hand-held devices. It has also grown thanks to the increased video capabilities of photographic cameras.

High definition transition and higher image quality led by sporting applications
Television production is increasingly being shot in high definition which has resulted in studios being upgraded, camera replacement cycles shortening and increased demand for our products. As producers seek to shoot higher quality images, 4K high definition cameras are being manufactured, although their adoption is in its infancy. Sports broadcasting remains at the forefront of higher quality images as broadcasters seek to differentiate their offerings.

Broadcasters’ capital expenditure
Broadcasters’ ability and willingness to incur capital expenditure on the construction or refurbishment of studios depends partly on their financial performance. Those broadcasters funded by subscription income have performed well and expanded with new operations globally. Those broadcasters reliant on advertising expenditure continue to invest in their capabilities but tend to be more susceptible to macroeconomic conditions. The savings and efficiencies offered by LED lighting compared with traditional lighting drive the sale of those products too.

Wireless transmission of data
We see accelerating growth in the use of wireless devices to transmit data and images. We believe this will continue including the use of high performance antennas alongside low latency transmitters and receivers. The cost-effectiveness, range and quality of video data encoders, decoders and related components allows users to monitor and transmit images at increasingly lower costs.

TV Revenue Growth Forecasts – 2014-2019

Vitec market position
Vitec is the market leader in most of its niche product categories, providing leading products through our brands to the Broadcast market.