ProAV distribution is at a turning point. Falling hardware margins, the rise of subscription models, and managed service providers are reshaping the value chain - and leaving traditional distributors caught in the middle. Can distribution reinvent itself to stay relevant in an AI-driven, service-centric future? An invidis opinion piece from Florian Rotberg.
Opinion: ProAV Distribution at a Crossroads
The ProAV distribution landscape is undergoing a profound transformation. DCC Technology – now rebranded as Nexora – is gradually divesting its Exertis ProAV distribution subsidiaries. Competitor Midwich is closing unprofitable national operations, such as Mobilepro in Switzerland. Meanwhile, broadliners like Ingram Micro have long struggled with ProAV, largely due to the significant warehouse space requirements. From the outside, only TD Synnex appears to remain firmly on course.
Distribution has always aspired to be more than a premium logistics provider. For years, the mantra has been value-add distribution – offering services beyond mere product delivery. But traditional value-adds like device imaging, hardware pre-configuration, and financing solutions rarely generate sufficient scale, especially for large international distributors that are publicly traded or owned by financial investors.
Specialized distributors, on the other hand, often stay closer to the market and can deliver more tailored, customer-specific services. This agility gives them an edge in a rapidly evolving environment.
The pressure points
Margins on hardware are at historic lows. Global economic uncertainty persists, and the looming threat of tariffs adds another layer of risk to an already fragile business model. Compounding these challenges is the industry’s shift toward software and subscription-based services – a domain where traditional distributors struggle to add meaningful value. Virtual goods don’t lend themselves to the same logistical expertise that defined distribution for decades.
Then there’s the rise of Managed Service Providers (MSPs). These players have the scale and processes to bundle hardware, software, and services into a single monthly price. This integrated approach risks leaving distributors “caught in the middle” – somewhere between logistics and manufacturer support, without a large enough space and often lacking clear competitive advantages.
Still relevant – but reinvention is key
Despite these headwinds, distribution remains an essential part of the ProAV value chain. Many smaller vendors rely on specialized distributors to reach their markets. Even software providers often leverage distribution networks. And the largest manufacturers simply cannot replicate the partner sales infrastructure that distributors provide.
But the expectations are changing fast. To stay relevant, distributors must reinvent themselves – again. (eg Exertis Linklab) That means moving beyond incremental value-adds and embracing new roles in service orchestration, integration support, and perhaps even managed offerings. The future belongs to those who can pivot from being a logistics backbone to becoming a strategic enabler in an increasingly software-driven, service-centric digital signage world.
