Why Media and Entertainment Industry is Adopting the Cloud?
COVID-19 pandemic has permanently changed consumers' content consumption habits, totally disrupting the media & entertainment business models. The global lockdown forced people to stay at home, which resulted in a spike of 30% in online data consumption
. According to Nielsen's study
, home-bound consumers have led to a 60% increase in the amount of video content watched globally during the pandemic. In 2020, 96%
of consumers increased their online video consumption, with 9 out of 10 viewers wanting to see more videos from brands and businesses. As of 2021, it is predicted that an average person will spend 100 minutes per day watching online videos.
The boom in content consumption in the year 2020 has set the streaming industry on a new growth trajectory, with the Streaming Video-On-Demand (SVOD) revenues likely to grow at a 10.6% CAGR through 2025 making SVOD an US$81.3bn industry. There has been a paradigm shift in how entertainment companies deliver content to consumers, from big screens to short-form content. This evolution is underscored by the fact that during 2020, about 2 million
U.S. viewers let go of their multi-channel subscription services in favor of more 'streamlined' solutions.
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Consumers are fast changing their preferences towards 'new' digital media channels with the rising on-demand content being consumed through internet-connected devices—their phones, smart TVs, tablets, computers, set-top boxes, gaming consoles, and digital media players, as compared to more traditional forms of media such as TV, print, and radio. Providing on-demand content to the consumer at such speed has necessitated media & entertainment (M&E) companies to move away from legacy productions systems, which are inherently slow and are inundated with multiple quality challenges. Business conferences utilize digital platforms to extend the reach and increase their expanse beyond boundaries by including remote participants in the absence of business travel.
These solutions keep audiences engaged and establish new multi-channel, customized connections, which are mobile-first and driven by sophisticated data analytics. This trend represents a perfect opportunity for the nimble media entities and their systems integration partners to step in and leverage the shifting demand patterns. Cashing in on opportunities and with the intent to win over their competitors, leading M&E companies are unleashing the power of the Cloud to bring scalability and agility into their businesses.
The adaptive nature of cloud offerings makes it a perfect choice for the M&E industry that is currently looking for ways to address the emerging global shifts in media and entertainment patterns. A recent EY research
revealed that 50% of media & entertainment executives can no longer rely on traditional business models to drive future growth and are looking at strategic and operational reinvention. By offering an effective tool for revitalizing the economies of the business and by ensuring lower costs than the on-premise solutions, the adoption of a cloud-based ecosystem can help these companies find success in this dynamic technology landscape through greater customer engagement and a more optimized cost framework.
Benefits of Cloud Computing in the Media and Entertainment Industry
It's important to note that while M&E companies are not ultimately moving away from existing storage models, they are increasingly eyeing the cloud platform to achieve their production, distribution, and archiving goals. The Cloud delivers agility, unlimited scale, flexible consumption, privacy, security, and many other advantages to the M&E industry. Let's take a look at some of the benefits of deploying Cloud in M&E:
Speed to Market
The Cloud enables media companies to quickly roll out new services, which has become a critical competitive lever for industry players. Highly scalable and secure on-demand services aid in accelerating content production and reducing workflow intervals by processing large content files and formats in the Cloud. To manage hundreds of video file workflows end-to-end, including ingest, transcoding, and distribution, across Cloud and on-premises systems, Mediacorp, Singapore's largest media company, has recently gone through the digital transformation of its broadcast operations using Cloud solutions. It enabled Mediacorp to transfer digital assets quickly, providing workflow orchestration and a centralized view & control point to deliver content across its 35 brands for TV, radio, and OTT systems.
Through Cloud's capability, the Mediacorp broadcast operations team has delivered video and audio content more quickly, seamlessly, and efficiently to consumers across different platforms, including new mobile apps, interactive televisions, and other connected devices. Similarly, by deploying Google Cloud
, Luma leveraged Compute Engine custom images and paired them with a high-performance ZFS file system to render shots in as little as 90 minutes—compared with the 7 or 8 hours without Cloud.