Digital signage streamed through TV screens of all sizes is coming, and it will undoubtedly impact on businesses that use large format print to provide out-of-home visual stimulation and advertising.
In a nutshell, more digital signage surely means less printed signage?
Assuming that is true, how do you, the guy that prints sign and display graphics, replace this lost revenue stream? Can you make money from digital signage systems?
We asked ourselves that very question, and recently visited the Screen Media Expo at Earls Court to see if we could find answers, or spot any potential opportunities - frankly we came away largely unimpressed. I'm going to play devil’s advocate here and concentrate on the negatives…
The distinct impression we took on board overall is that, currently, this is a very disjointed and unfocused market. This was compounded by the fact that we heard from some very good sources that no-one is actually making any money yet, not even the big players.
As said, there is little doubt that electronic displays will have an impact on the digital print market, but I just can't see where ‘we’, being those who supply products and services to the wide-format printing market, can make money from digital signage.
Can we profit from the hardware? I doubt that very much; the underlying ‘display’ technology is based on commodity consumer goods, and these can be purchased at a few dollars above cost on eBay.
What about software? Maybe some people will create niche applications, but our feeling is that any significant developments will quickly be bought up by the big brands. And they’re the companies which, ultimately, will own this market. Let’s face it – the software itself isn’t particularly innovative or clever; it’s simply content streams that already exist in mature forms in other markets.
Then there’s the content… again, I don't think so. Ultimately the content for this market, certainly as it matures, will be created by existing creative agencies and production companies that already produce for TV.
Finally, there’s the underlying network. The only value we see in this market for an entrepreneurial move is in building a niche network where you can corner a market. From here you can build a network structure where customers are paying for usage, bandwidth and views. However many of these niche markets are already tied up – good examples are London cabs, buses, train stations and shopping centres. Many of these contracts, and others like them have already been taken, and you, me or Joe the sign maker won’t get a sniff.
If you can corner a niche market, and create a digital network for it, then maybe, just maybe, you'll make some money. But this will happen probably through being acquired in the future by Google, Amazon, BBC, Sky or any of the other kings of Internet and Broadcast that will ultimately own this market in its entirety.
These are the companies which will have to own it, because they are the only people with the commercial nous to monetise it. That’s because the money will only ever come from big brand advertisers and, for the most part, they will not be dealing with the likes of you and me.
The exception to this is with existing media owners like Clear Channel and JC Decaux, who have installations that they can convert to encompass digital.
So, in summary, it’s an interesting market which undoubtedly will impact on print. But it’s a market where we feel that our skills as printers play no part and can add little value.
No doubt some will try. But, ultimately, I predict a lot of wasted time, effort and money, chasing a dream which doesn't actually exist.
Having said all of that, I very much look forward to someone proving that my negativity is ill-founded and incorrect.
We’d be interested to hear what others think.
