AV Magazine
The Paris Olympics is eagerly anticipated by sports fans in France and viewers around the world but its impact on a generally sluggish domestic pro AV business is minimal at present. “Obviously we are very happy to be hosting – it’s a fantastic opportunity,” says Gwenaëlle Villette, director of sales, Peerless-AV is a widely shared sentiment but Xavier Pion, general manager, Southern Europe, d&b audiotechnik is almost a lone voice in believing the event will fuel growth.
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An economic impact study revealed that the Paris 2024 Olympics and Paralympics could generate €10.7 billion in economic benefits and create 250,000 jobs.
How this will impact the pro AV business is uncertain. With sustainability at the heart of the vision the games has not represented the AV bonanza of previous editions. Organisers have been at pains to ensure there are few white elephants by maximising existing stadia like Stade de France and Roland-Garros (home of the broadcast centre) and deploying temporary structures.
Villette expects requests for tenders for AV and digital signage to materialise in the coming months, “a little last minute, but we do know that these will be very price-driven with an emphasis on environmental consciousness since there is a directive that the technology must be eco-friendly for reuse after the Olympics in other Paris projects.”
That trend is supported by DPA’s regional sales manager, Christophe Bonneau: “The Olympics are creating a bit of stress in the AV business here,” he reports. “All the big players have presented quotes but, as far as we know, no orders have been solidified yet.
Commitments to be confirmed
Many are waiting for commitments to be confirmed. It seems services will be deployed at the very last minute, which could be challenging for our clients and for us in terms of delivery reactivity.”
He also says some customers have decided to “save” PA or mixing desks in their HQ just in case demand explodes. Another theory is that manpower and equipment is mainly coming from other territories.
“We could all be be left with a lot of brand new equipment in client rental stocks post-event,” adds Bonneau. “This will alter the supply/demand in favour of their customers, as rental houses will need to make equipment available at lower rates to win the bid. This could increase competition between all the big rental companies, which might result in a dramatic drop in market prices.”
Stéphane Bourdon, SWE general sales manager at Digital Projection hasn’t noticed any particular acceleration in the pro AV demand. “These games are intended to be more respectful of environmental considerations, so the requirement for AV resources is less,” he says. “And in some specific areas of AV, there are some very high level partnerships in place which have a direct negative impact on the AV offer in terms of products and price.”
“It’s more of a business opportunity for rental companies, less for integrators,” believes Eric Grandmougin, sales and marketing director of Arbane Groupe (APG and Active Audio). His company has installed a few projects in medium-sized towns where international teams will establish their base camp during the Olympics. “Many music festivals have been geographically moved, delayed or arranged sooner to avoid the busy weeks of the Games. That’s good for larger rental companies able to use their equipment on more dates than previous years but I don’t feel it’s had a huge impact on manufacturers.
Investment in control room
The Games are not without impact in certain areas. Datapath’s regional sales manager, William Zimmermann notes investment in control room solutions has been significant, “as this global event requires effective management of critical operations, security and logistics.” Datapath has been involved in several confidential strategic projects to modernise and create control rooms for the event.
He adds: “The Olympic legacy for the pro AV sector will be infrastructure developments, improvements in user experience as well as opportunities to promote the industry. These elements are helping to shape the future of the sector and stimulate innovation and growth.”
The Games are also driving “immense interest and growth” in streaming solutions and AV-over-IP applications, reports Matrox which is seeing a corresponding increase in rental business and deals with local SIs.
“(Networking standard) IPMX has also gained momentum and awareness in the pro AV market in connection with the Olympics,” says country manager, Cecilia Willis. “The Olympic Games has been instrumental in driving growth in AV-over-IP solutions, and the momentum will continue long after coverage is complete.
High-profile, large-scale events like this are also driving more stringent security requirements. In the past year, we’ve seen large projects deploying our Maevex 6100 Series in control rooms for public safety across France.”
Slow start to 2024
Take the Olympics out of the equation and the AV climate in France is similar to the rest of Europe in that it is struggling out of an economic downturn. The local economic forecast for the second half of 2024 looks positive and is set to gather momentum.
“Some projects were either cancelled but the majority were postponed so now the market is catching up and we have a lot of projects in the pipe for this year,” says Villette.
Christie is forecasting growth of one per cent for 2024 but sees better potential for business in France than other European countries particularly for direct-view displays, including LCD panels and LED video walls.
Business was “very slow” during Q1 2024, reports Bonneau: “People are waiting for the economy to move forward. For now they are keeping their company and finances secured because future investments are very uncertain.”
After a decent 2023 the number of projects has slowed down, agrees Grandmougin; “With inflation, construction budgets have impacted all the non-essential functions, and unfortunately, AV is often taking a hit when budgets overrun.”
Inflation rates are expected to decrease giving companies like Arbane Groupe cause to plan for greater market normality by year end.
HD system upgrades
Ross Video has a different outlook. Todd Riggs, director of product management, calls pro AV “pretty healthy” with lots of activity. “It’s not just upkeep and maintenance investments either,” says Riggs. “While there are a lot of system refreshes and rebuilds, (clients) are looking to invest for big future projects and evaluating kit and formats to see what will improve their production capabilities down the line.”
One factor driving this, he says, are HD systems upgrades in part to broadcast the Paris Olympics in 1080p HDR (which required SDR-HDR conversions) while ensuring future-proofed investment in UHD. “There’s a lot of experimentation going on around that right now,” he adds.
Crestron’s business development manager, Christophe Fortune characterises the current climate as “dynamic and promising” but with lengthy decision-making times. He says demand for AV solutions has been growing steadily across corporate, education, healthcare, hospitality, and entertainment verticals.
While “concentration of resources and expertise makes Paris a magnet for diverse AV experiences” says Pion, others including Bourdon report “significantly higher involvement” outside of the capital in AV in major cities (such as Video Mapping Festival in Lille) and theme parks Puy du Fou in Les Epesses in Loire.
“We’ve also recently noticed local branches of national companies settling around regional capitals to strengthen regional business, as well as neighbouring markets,” he says.
Christie spotlights the construction of the Grand Paris Express “a significant infrastructure project, which will have a huge impact on Paris when it’s completed in the next decade,” says Olivier Collet, senior business development manager. The project aims to improve connectivity across the city by building 200 km of mainly underground rail and 68 new stations.
In live, corporate, and special events, Pion pinpoints a “discernible trend” towards immersive experiences. “There are over a dozen installations across live event venues in the country that cater to this demand, with the recent refurbishment of Lido2Paris as a prime example. This project, outfitted with a new d&b audio system, underscores the evolving landscape of AV solutions in France.”
Naturally the impact of Covid continues to play out. In Bourdon’s opinion, the AV integration market has dramatically changed since 2020-21, moving towards large quantities of videoconferencing rooms or connected and interactive meeting rooms, “with the risk of finding themselves up against IT installers who are capable of drastically reducing margins.”
Green AV priorities
Sustainability is not only core to the Olympics but to the wider French market too. It is becoming a key reason to adopt or reject tenders by enterprise and public sector, says Grandmougin. “It means that a manufacturer in France (or the rest of Europe), with products you can easily maintain and repair, using environmentally friendly materials, now provides an actual advantage over low cost non-sustainable competition.”
It is noticeable in the public address market for railway stations and airports, and a reason why Arbane was chosen by state-owned train operator, SNCF to lead on all railway station installations until the end of the
decade.
Fortune says the increasing focus on sustainability and energy efficiency will shape the pro AV industry in France. “Green audio visual solutions, such as energy-efficient projectors, LED displays, and eco-friendly production practices, will become more prevalent as businesses prioritise environmental responsibility. The CSR valuation within tenders becomes an inevitable subject in the final decision.”
French sustainability legislation is forcing customers to look at more efficient equipment and less carbon wasteful production workflows. “Then you also have new limits at a municipal level, specifically around weight restrictions for vehicles going into different parts of cities,” reports Riggs. “That means they are having to rethink how they build bigger trucks and how to do larger-scale productions with smaller, interconnected flypacks that use software-enabled and modular equipment to get more powerful infrastructure into smaller spaces.”
Le French mode du jour
There are three factors that anyone setting up an AV business in France needs to have a firm grip on: the cultural landscape, business strategy, and local support that might be available.
For many years, Matrox Video managed the French territory out of the UK but says it found a “definite business benefit” in relocating a sales account manager to France. Culturally, this local sales presence is important, and it has paid dividends in terms of our inclusion in high-profile sports events in the region,”
says Willis.
Didier Quantili, Avocor’s Southern Europe sales manager explains how French business culture differs from an Anglo-Saxon approach. “A good idea would be to conduct a market and feasibility study that goes beyond traditional market research. Integrate these cultural insights to understand communication styles, negotiation preferences, and customer expectations. This will help you tailor your company’s structure, operations, and even marketing messages to resonate with French clients.”
Where you can, secure the support of local resources to establish a strong foothold in the French market. “This could involve hiring bilingual employees who understand cultural nuances and can effectively bridge the gap between your company and French clients. Also try partnering with local service providers for tasks like legal compliance, accounting, or logistics to navigate the specific regulations and business environment.”
Quantili’s final piece of advice for any AV business in France, is financial stability. “Securing adequate financing and maintaining a healthy cash flow are the lifeblood of any business, and France is no exception.”
