Back in the fall of 2020, several months after private equity firm Black Dragon Capital completed its acquisition of Grass Valley, it became apparent to the company’s management team that it had an unpolished jewel in the GV portfolio that needed attention. Given the virtualization changes, cost cutting and high demand for new content occurring within the industry, customers who served as beta testers told them, “this AMPP thing is going to change the industry.”
Adobe’s acquisition of New York based start-up Frame.io for $1.28 billion highlights the meteoric rise of cloud based collaborative workflows, stimulated further by the Covid-19 pandemic.
New, in-cloud, pay-per-use business models offer new advantages to occasional REMI, field reporting, remote event production and similar content producers and distributors with a better business model to remain competitive and profitable without huge ongoing capital investments.
The pressure to extract more revenue from ever shrinking budgets, due to expensive content rights contracts, is causing Broadcasters to re-evaluate—and in many cases reduce—how they spend their money on production tools and infrastructure. Recognizing this, live production technology providers like Grass Valley are getting “creative” in how they sell their products and cloud-native systems.
Coming off a whirlwind of three new acquisitions in the past six months, Telestream said it has carefully navigated the past year and emerged stronger than ever. The company actually increased profitability in a time of challenge for many others in the industry.
With its core business in live sports production, Grass Valley has seen its revenue contract significantly over the past eight months but with a new integrated software-defined product roadmap, it looks to bounce back while “reducing the pain” of migrating to IP. This insight, and more, was revealed during a virtual press conference presented by company management in early October.
In the wake of the pandemic, Telestream has used the restrictions imposed on virtually every equipment supplier over the past few months to innovate and focus on providing new features for its products that facilitate remote operation and automated quality control for enterprise-scale broadcast and media operations.