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Digital Media Asset Management & Workflow Management
in the Broadcast Industry: Survey & Analysis – 2004

Table of Contents & Executive Overview

Published by MRG, Inc.
March 2004
Pages: 85
Price: US$1,495.00


Table of Contents

1. EXECUTIVE SUMMARY
1.1. INTRODUCTION
1.2. USAGE EXPERIENCE
1.3. TECHNOLOGY FINDINGS
1.4. BUSINESS FINDINGS
1.5. FINANCIAL FINDINGS

2. ENVIRONMENT – USAGE PROFILE OF THE BROADCAST INDUSTRY
2.1. INTRODUCTION
2.2. INTERVIEWEE CHARACTERISTICS
2.3. BROADCAST INDUSTRY OVERVIEW
2.4. DAM/WFM USAGE CHARACTERISTICS

3. USAGE EXPERIENCE – DAM / WFM GOALS AND SATISFACTION
3.1. INTRODUCTION
3.2. SYSTEM IMPLEMENTATION GOALS
3.2.1. Summary – System Implementation Goals
3.2.2. Reasons for Implementing DAM and WFM
3.2.3. Goals for System Implementation
3.2.4. Justification for Implementing Systems
3.3. SATISFACTION – BUSINESS FACTORS
3.3.1. Introduction
3.3.2. Digital Asset Management
3.3.3. Workflow Management
3.4. SATISFACTION - TECHNOLOGY FACTORS
3.4.1. Digital Asset Management
3.4.2. Workflow Management

4. TECHNOLOGY ANALYSIS
4.1. INTRODUCTION
4.2. DAM AND WFM – TECHNOLOGY BACKGROUNDER
4.2.1. DAM Components
4.2.2. Workflow Components
4.3. ARCHITECTURE CONSIDERATIONS
4.3.1. Top Level Architectural Considerations
4.3.2. Integration Considerations
4.4. SYSTEM DESCRIPTION
4.4.1. DAM System
4.4.2. Workflow Management System
4.4.3. Installation and Rollout Timing
4.4.4. Cost Profile
4.5. SYSTEM CHARACTERISTICS
4.5.1. DAM System Characteristics
4.5.2. Workflow System Characteristics
4.6. VENDOR OVERVIEW
4.6.1. Broadcast-Specific
4.6.2. Enterprise Content Management
4.6.3. Storage Centric
4.6.4. Database Centric
4.7. INDUSTRY TRENDS AND BROADCASTER DIRECTION
4.7.1. Key Themes in the Industry
4.7.2. Maturity of DAM/WFM Related Technologies

5. BUSINESS ANALYSIS – BENEFITS, CHALLENGES, OPPORTUNITIES
5.1. BUSINESS OVERVIEW
5.2. BUSINESS PROCESSES
5.2.1. Production
5.2.2. Archive
5.3. RESULTS – BENEFITS ACHIEVED AND NOT ACHIEVED
5.3.1. Summary – Results (Goals Achieved and Not Achieved)
5.3.2. Benefits: Expected, Achieved and Not Achieved
5.3.3. Unanticipated Benefits
5.4. LESSONS LEARNED
5.5. INDUSTRY TRENDS – BUSINESS
5.5.1. Overall DAM/WFM Marketplace Trends
5.5.2. Competitive Strategies of Vendor Segments
5.5.3. Broadcaster View on DAM Industry Trends
5.6. FUTURE BROADCASTER DIRECTION – BUSINESS

6. FINANCIAL – GETTING A HANDLE ON ROI
6.1. FINANCIAL OVERVIEW
6.2. METRICS AND BROADCASTER FINANCIAL STRATEGY
6.3. MEASUREMENT OF ROI IN THE BROADCAST INDUSTRY
6.3.1. Costs
6.3.2. Benefits
6.4. FUTURE BROADCASTER DIRECTION – FINANCIAL

7. APPENDIX: INTERVIEW GUIDES – BUSINESS AND TECHNOLOGY

TABLES
T-1: Broadcaster Interviewee Pool
T-2: Functional Block Usage by Broadcaster Type
T-3: DAM/WFM Usage Characteristics
T-4: Reasons for Implementing DAM and WFM
T-5: Goals for System Implementation
T-6: Justification for Implementing Systems
T-7: Satisfaction with DAM - Business Factors
T-8: Satisfaction with WFM - Business Factors
T-9: Satisfaction with DAM - Technology Factors
T-10: Satisfaction with WFM - Technology Factors
T-11: Key Components of Digital Asset Management (DAM)
T-12: Key Components of Workflow Management (WFM)
T-13: Description of System Implementation
T-14: Description of System Characteristics
T-15: Asset Characteristics by Type of Content
T-16: Enterprise Focus by Type of DAM Vendors
T-17: DAM/WFM and Production Business Processes
T-18: DAM/WFM and Archive Business Processes
T-19: Benefits - Expected, Achieved, Not Achieved
T-20: Unanticipated Benefits
T-21: Lessons Learned
T-22: Competitive Strategy of DAM Vendor Segments

FIGURES
F-1: Worldwide Digital TV Households (2002 to 2005)
F-2: DAM and WFM Value Chain and Architecture
F-3: Usage Experience - Broadcaster Interview Process
F-4: Technology Analysis - Broadcaster Interview Process
F-5: Generic Broadcast DAM/WFM Technical Architecture
F-6: Generalized Broadcast DAM/WFM Technical Architecture
F-7: Cost Contribution Percentage (HW, SW, Integration, Maintenance)
F-8: Vendor Focus - IT versus Broadcast
F-9: Broadcast-Centric Example (Avid)
F-10: Enterprise Content Management (ECM) Example – Documentum
F-11: ECM - DAM Example (Documentum)
F-12: Technology Maturity Curve and Impact on DAM
F-13: Business Analysis - Broadcaster Interview Process
F-14: Key Trends in Broadcast DAM
F-15: Market Power in the Broadcast DAM Industry
F-16: Cost Contribution Percentage (HW, SW, Integration, Maintenance)


Executive Overview

Usage Profile of the Broadcast Industry
The purpose of this industry survey was to determine how well the installed Digital Media Asset Management systems are performing. The report, “Digital Media Asset Management and Workflow Management in the Broadcast Industry,” was conducted and analyzed by Multimedia Research Group in early 2004.

The overall primary focus was to understand the extent and success of use of DAM (Digital Asset Management) systems and, where applicable, WFM (Work Flow Management) systems. Through the use of profiles or case studies, the survey examines how these solutions are used by major broadcasters and media production centers, and what changes are needed to address the evolving needs of the end users.

Four types of broadcasters were interviewed: News/Sports; Broadcast/Internet; Feature Film; and Episodic Television. Each of these types illustrates a different perspective on the broadcasters’ intentions and decision processes.

With the use of in-depth, structured interviews of over one hour per broadcaster, extensive insight was gained into the operations of these facilities. This industry survey is differentiated by the breadth and depth of input provided by each of the respondents.


Interviewee Characteristics
Industry-leading broadcasters interviewed for this survey included most of the major networks. This report aggregates the responses, in order to preserve the anonymity of the answers – however specific data provided by the respondents is presented without attributing it to the individual respondent or organization. Selected broadcasters were interviewed in depth, while others have provided anecdotal and short answers to top-level questions taken from the interviews. All interviewees were at the corporate headquarters level.

The profiles of the broadcast operations included in this industry survey range from news, sports, serial/episodic television to feature film channels and broadcast plus Internet. The content-delivery models range from terrestrial to cable (primary models), to satellite, to the Internet. The type of primary content was also an important driver of the business intent for using DAM and Workflow Management.

Experience with DAM/WFM ranged from a just-installed system to over six years – in addition, one facility was in the process of defining its system that will be in pilot in 2004, and one facility was interviewed that made a decision not to use DAM/WFM at this time. This range of experience gives an excellent sampling of the issues that occur at various points in system deployment, as well as a range of perspectives of the user experience.

Detailed interviews were conducted with six primary broadcasters:
• Broadcaster 1 - Large terrestrial broadcast headquarters
• Broadcaster 2 - Large terrestrial broadcast headquarters
• Broadcaster 3 - Large cable broadcast news operation
• Broadcaster 4 - Medium-sized broadcast news operation
• Broadcaster 5 - Television operation of major film studio
• Broadcaster 6 - Major studio and on-demand provider

A target list of candidate companies was contacted, and broadcasters that were interviewed were selected from respondents meeting the criteria given above. The original target list (Interviewee Pool) is shown below – all interviewees came from Table 1.

Table 1: Broadcaster Interviewee Pool

Network Broadcast
Non-News/Sports
Station Groups
ABC
HBO
Belo
ABC O&Os
National Geographic
Clear Channel
CBS News
Paramount
Hearst
CNN
Showtime
Lin
Fox Television
Tech TV
Sinclair
MSNBC
Tribune
NBC News Archive



DAM/WFM Usage Characteristics
This section investigates how broadcasters use Digital Asset Management in their operations. First, an overview of the value chain of DAM is presented in Figure 1. Figure 1 summarizes the analysis of how broadcasters use DAM in their operations to manage their digital assets.

Figure 1: DAM and WFM Value Chain and Architecture
Workflow Management

Summary of Justification Models
In all cases, the justification model went beyond a simple use of “traditional” ROI, but in all cases, the broadcasters chose to implement DAM/WFM using budgeted VTR-replacement dollars rather than buying new VTRs (Video Tape Recorders). Arguments used to justify DAM/WFM installations fell into two main categories (1) savings would be generated by reducing labor costs and equipment/consumables replacement, (2) gains in competitive advantage would be achieved by faster “time-to-story,” driven by efficiency and flexibility gains. Most projects waited until there was a specific need, one in which the DAM would support a higher-level business need such as a new product offering (VOD in one case), equipment replacement, or multi-purposing of content for new business models or new media models. Justifications mainly focused on business reasons rather than technical need primarily because these systems were only installed when they could clearly either drive savings or increase revenue.


Key Observations
In no cases were the justifications a “traditional ROI analysis,” with specific goals for payback period and calculations like IRR. While these metrics may have been used as additional information to secure funding, the projects were justified based on necessity of installing a system to serve specific business needs – falling into several key categories:

Diversion of Infrastructure Replacement Funds: In several cases, a budget was already in place for replacing aging VTRs and infrastructure. The advantages of using digital file-based assets versus tape were highlighted. In these cases, money would have been spent anyway – the justification and decision were based on why DAM/WFM was a better expenditure than tape deck replacement.

Competitive Advantage: A business need to improve timeliness of getting stories on-air (or online) drove several justification models – in one case, for a broadcaster who will be implementing a DAM/WFM system in 2004, in another case, for a company that has a major part of their business model tied to their online presence.

Specific Business Model (VOD, in this case): The case for implementing DAM/WFM for the broadcaster with long-form content was driven by the business need to provide a VOD content delivery model.

Role of WFM vs. DAM Of the interviewed facilities: DAM was the primary focus of the facility upgrades, with little serious consideration being given for WFM. Gains in productivity and WFM effectiveness, in other words, were made as an outgrowth of DAM upgrades, not as the result of rigorous early-stage WFM design


Technology Analysis
Several key themes from the technology analysis are listed below.

Integration observations:
• Online and Archive were always separated, usually with different DAM software
• Significant issues resulted from multi-vendor integration

Key system capability findings:
• Most broadcasters have not yet ingested most their assets targeted for archiving
• A large degree of customization is required to suit the needs of broadcasters
• Workflow tools capabilities frequently went unused – this is changing slowly as users intend to use tracking data to quantify • process improvement benefits

Vendor observations:
• Broadcast-specific vendors were always chosen as the DAM/WFM suppliers
• Storage and networking were provided by standard IT component suppliers
• Most broadcasters added specialized functions, like encoding, from specialist vendors

Industry-level technology trends and future broadcaster direction:
• Enterprise focus – both broadcasters and vendors recognize the need to integrate DAM and workflow management across the broadcaster enterprise (usually by federating the multiple departmental systems by creating middleware connectors)
• Consolidation – Vendor consolidation is natural in the industry.
• Broadcasters also want to reduce the number of vendors involved in implementing their systems


DAM and WFM – Technology Overview
Across the content creation, processing and distribution value chain, digital technology is used at all stages in the broadcast production workflow. This is driving adoption of two key technologies in the broadcast environment – DAM and Workflow Management. The broadcast value chain and a representative generic architecture of DAM and WFM are shown below. DAM systems frequently also include the format conversion and metadata generation blocks – the “boundaries” of what is considered “DAM” are not firm, and are viewed differently by the vendors and users.


Vendor Overview
Vendors of the DAM/WFM systems tend to fall into several major categories:
Broadcast-Specific
• Enterprise Content Management
• Storage-Centric
• Database Centric


Vendor Focus - IT vs. Broadcast
Descriptions of the companies in these categories, tradeoffs associated with the category, and an overview of product offerings from a representative vendor in each of these categories are briefly described.


Lessons Learned/Future Trends
Broadcaster experiences to date with DAM/WFM were summarized by answers to two open-ended questions about the lessons they learned. Several key themes recurred while analyzing the results of the interviews.

These points, summarized below, suggested areas where experience has taught some important lessons:
• Maximize stakeholder involvement from the beginning
• Spend more time in up-front planning – this investment returns at least 10x in savings
• Consider implications of enterprise deployment up-front to ensure successful integration
• Plan for, and manage organizational change – it affects adoption rate and ROI
• Assume a healthy budget for integration – most cost-overruns came in this area
• Metrics are needed to identify and quantify the benefits and issues.


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