BBC Spinning Out Their Technology Group Provides Unique Opportunity to Acquire Valuable Assets

The world-renowned BBC (British Broadcasting Corporation) is in the process of spinning out their BBC Technology group. In-Stat/MDR (http://www.instat.com) believes this decision presents a rare and unique opportunity for one of today's larger, service-oriented Information Technology (IT) companies to gain a leadership position serving the global community of professional television broadcasters. Acquiring BBC Technology will provide a strategic point of entry for an IT Services company into the premium world of broadcast services.

The BBC Technology Group Presents a Unique Mix of Assets
First, the BBC Technology group provides IT services for 28,000 computers and 35,000 telephones to the BBC. This IT services business contract comes with the BBC Technology group. Second, it provides a point of entry into the emerging area of high-end television broadcast services. They provide a wide range of in-depth services, from the design, specification, and construction of new TV broadcast facilities, and extend into providing outsourced operations support and management services of these facilities. Third, it comes equipped with the London Media Gateway, and other infrastructure assets that can be operated to provide video transmission services to broadcast companies and, eventually, to major enterprises and government agencies.

BBC Technology Well Positioned for Long Term Growth
The key to participating in the world of professional broadcast television over the long term will be the ability to help broadcasters bridge the gap between today's predominantly live video distribution services, and tomorrow's store and forward solutions. BBC Technology has an excellent mix of solutions that adequately cover today's live video play-out and distribution needs, while, at the same time, providing flexible and scalable elements that can be brought into play as needed, to help broadcasters move forward with their store and forward plans as they choose to do so. The flexibility and scalability of the BBC Technology portfolio of solutions provide them with an excellent position to expand their market position in the broadcast television world. In addition, we expect that many portions of the BBC Technology portfolio can be successfully moved into service for expanding markets in corporate, enterprise, and government video environments.

The BBC Technology group presents a unique mix of assets that make it an ideal opportunity to help a major IT services company to do three things. First, it provides a straightforward market extension for IT services. Second, it provides a point of entry into the emerging area of high-end television broadcast services. Third, it comes equipped with the London Media Gateway, and other infrastructure assets that can be operated to provide video transmission services to broadcast companies and, eventually, to major enterprises and government agencies.

The BBC Technology group already provides IT services for 28,000 computers and 35,000 telephones to the BBC. This IT services business contract comes with the BBC Technology group, and presents the potential buyer of BBC Technology with two possible vectors for growth. First, they can apply their own internal expertise to reduce the costs of these services. Second, they can provide enhancements and upgrades to these services that will generate increased revenues from the BBC.

The BBC Technology group has a strong position with their Colledia (TM) portfolio of television broadcast automation and management tools. This system was originally developed to automate ingest, play-out, and re-purpose content for the BBC, which is one of the world's largest and most respected broadcast organizations. With this background as its pedigree, Colledia (TM) has been accepted by ESPN, the world's largest sports-oriented network operator, and is in position for emerging growth opportunities with several other major TV broadcast network services.

Once the new owner of BBC Technology group learns the ropes of the broadcast industry, we believe that there will be a strong, substantial growth opportunity, because the worldwide television broadcast industry will be ready to embrace outsourced services if they are provided by a highly trusted outsourcing partner. Once again, the fact that BBC Technology group has years of experience operating the BBC, makes it easy for them to be qualified as a highly trusted partner for these services.

The final piece of the puzzle that we believe adds tremendous up-side value to the assets of the BBC Technology group are their existing, high-end, broadcast television communications infrastructure assets. Specifically, the London Media Gateway, combined with relationship and contracts with satellite service providers, presents a unique opportunity for a major IT services provider to own and operate a few key communications links. When we consider that the communications links already set up for use by the BBC are likely to be the same, or similar, links needed by other international broadcasters, there appears to be, once again, a substantial, long-term growth opportunity.

Three Key Groups of Assets All Point Toward Growth
In conclusion, we believe that the combination of the three key groups of assets:

Existing IT Services contract

Colledia (TM) TV Broadcast automation assets and services capabilities

London Media Gateway and satellite infrastructure contracts
provide a unique opportunity for a major IT services company to expand their existing IT services business into the BBC, and then enter the up-and-coming market of television broadcast automation services with a well-known and highly trusted partner - BBC Technology group.

In-Stat/MDR has a wide variety of reports available that cover the four main topics of:

Information Technology Services

Broadcast TV Services

Gigabit Ethernet Video Services

Voice-over-IP services

Other Related Reports

[ Back To TMCnet.com's Homepage ]

Discussions: