Videndum is positioned at the heart of the content creation market, with market-leading, premium brands in defensible niches.

The content creation market has attractive structural growth drivers with strong medium-term prospects. Although the consumer and ICC segments of the market are being impacted by the challenging macroeconomic environment, and US and some European cine/scripted TV productions were paused due to the US Writers’ and Actors’ Strikes, Videndum expects that the demand for, and investment in, original content (e.g. for live news, live sports and events broadcasting, reality and scripted TV shows, films, digital  visual content for e-commerce and vlogging, etc.) will continue to grow in the medium term.

We estimate that c.75%* of the Group’s business is exposed to the four main structural market growth drivers below which, although significantly impacted in the short term, remain valid in the medium-to-long term. Organic growth is driven by these four drivers coupled with technology advancement, and we continues to develop innovative new technology to improve customers’ productivity by developing products which reduce set up time and lower operating costs. This is becoming increasingly important to customers and drives demand for new and replacement products. 

*Management estimates. 

The internetplus

Retail e-commerce drives demand for digital visual content as new products need to be photographed and filmed frequently to be published online, for example across the fashion, food, real estate and hospitality industries.

We estimate that c.30% of the Group’s revenue is exposed to retail e-commerce which we serve with intuitive products used in studios and a growing number of enterprise facilities. This drives demand for our professional photography and videography equipment, including supports, backgrounds, lighting and carrying solutions, mainly benefiting our Media Solutions Division.

Subscription TVplus

Spending on original content creation for subscription TV channels like Netflix, Amazon Prime Video and Disney+ drives demand for our equipment.

We estimate that c.30% of the Group’s revenue is exposed to subscription TV, including: our video transmission and monitoring systems, and camera accessories in Creative Solutions; lighting equipment, mobile power and supports in Production Solutions; and supports and audio capture in Media Solutions.

TikTok and YouTubeplus

There has been significant growth in vloggers and influencers creating and sharing video and audio content on social media platforms like TikTok and YouTube.

We estimate that there are more than 40 million vloggers (with a following of over 1,000 people) who share and monetise their videos or podcasts. Improving the quality of their content is enormously important to their success – and that is what Videndum products help them do.

We estimate that c.10% of the Group’s revenue is exposed to vloggers and influencers who use our JOBY supports, lights and microphones, and our backgrounds to create high-quality content. The JOBY customers of today will potentially transition to Videndum’s other premium brands, as they become the film-makers, broadcasters and professional photographers of the future.

Live streamingplus

Live streaming of video has grown strongly across multiple verticals to maintain communications and facilitate remote collaboration. For example, governments, schools, houses of worship and businesses rely on high-quality, secure, zero or low delay video transmission to communicate with their communities, customers and employees.

Technology advancement driving shorter product replacement cyclesplus

Sustained R&D investment in innovative new technology to improve our customers’ productivity is key to enabling our premium brands to maintain their already strong market positions and, in places, gain share. Gross R&D spend is targeted at c.5% of revenue. 

Artificial Intelligence plus

Artificial intelligence (“AI”), like any transformational technology development, brings the opportunity to accelerate product development cycles through innovation. 

In cine/scripted TV and broadcast TV, AI is seen as a key enabler to greater production efficiency, particularly through increased automation in studio equipment (cameras, prompting, cranes) and automated talent tracking. In professional photography and live streaming, AI is already empowering faster post-production. These applications provide opportunities for growth that Videndum, and its Production Solutions Division in particular, is already addressing. There is a risk that over time, some professional photography may be replaced by artificially generated content. Internal studies have identified a potential risk on stock image libraries for commercial application; these are estimated to account for less than 10% of total professional photography being shot. However, AI development is evolving rapidly, and given how new this technology is, these estimates are prone to change significantly both in terms of the size and timing of impact.