Media industry is going through its most exciting transformation. No time in the history of mankind has there been the breadth and volume of content that we see today. As all of us are gravitating towards an Internet-driven media consumption behavior, innovations in this business is at its peak, across storytelling, content creation, processing, selling, distribution, discovery and in consumption.
The other interesting trend of Internet media consumption is the globalization of content consumption. We are now exposed to content from across different cultures, languages and issues that were once local, are now topics of discussions across the world. As we watched ‘Narcos’ we could experience the underbelly of the Colombian drug-cartel world, which is far from the issues of politics, family feuds and mythology that we are exposed to in Indian television.
As the media industry started to change, a parallel change was happening in the big iron world of IT. Servers and racks in offices were getting replaced by public cloud providers who were renting servers over the Internet. Public cloud companies were evolving into a phenomenon that has transformed multiple industries.
Public cloud’s business model, on-demand infrastructure and its associated services fits the needs of the new media world as a glove to the hand. Media industry is one of the largest consumers of storage (content archives), compute (transcoding, machine-learning, graphics rendering) and network (serving video to end-users). Given media is all digital bits and bytes, the software-driven processing on on-demand compute on cloud is driving just-in-time processing as content arrives or when viewers scale.
The key innovations in the media industry are driven at the edges- Content production and consumption. We as viewers are driving the consumption pattern, which in turn drives how media businesses enable us to discover, serve and monetize content. Tremendous innovations are taking place on content production, be it UHD, 3D, drone capture and production of local sports, news by amateurs turning to professionals. The lines between professional content production and consumer videos are blurring with the availability of technologies and equipment in consumer hands.
At Amagi, we are in the eye of this perfect storm. We have a unique view of the media industry as it transforms and embraces the cloud. We have been pioneers in this movement of the industry to the cloud and continue to drive the best of cloud technologies to benefit media businesses worldwide.
I would like to share some of the key trends that are at the cusp of breaking out and would become primetime over the next 12 months,
We are moving from a 100% subscription-driven premium content model to a high growth advertising-driven premium content. We will see multitude of platforms worldwide that will be advertising-driven and delivering premium content. This is largely driven by the viewership moving to connected TV platforms, which in turn is driving advertisers to treat this on-par with TV advertising. This mass adoption by advertisers, makes it viable for content owners to monetize premium content through an ad-only business model.
We are seeing a resurgence of linear channels on online platforms. This rather counter-intuitive trend is largely driven by, a) glut of content on platforms leading to a ‘paradox of choice’, leading users to spend a large amount of their time in discovering what to watch and b) connected TV viewing drives a lean-back experience, and viewers are preferring a lazy channel-flipping behavior. In addition, content owners and video platforms are discovering linear channel viewing behavior acts as the entry point for viewers to delve into related on-demand video library and thus acts a great content discovery tool.
Live sports and news creation are getting democratized. We are seeing a large set of amateur content creators starting to produce local/college/school level sports, hyper-local news stories. With Internet video destinations, there is space for all content and creation of niche communities for viewership is a reality. Given mobile phones and consumer-range priced outdoor camera installations, there is a surge of live production that will be available for all of us to watch.The breadth and depth of events that will be covered is mind-boggling, and the quality of the event production, be it sports-graphics, commentary, and camera positions are starting to rival large TV production formats.
If I could sum up the upcoming year, viewers are in the driver’s seat and a golden time if you are an entertainment junkie. Tons of content across genres, every imaginable sports events from across the globe and the icing on the cake, all of this available for free.
At Amagi, we will continue to leverage cutting-edge cloud technologies to make media businesses successful in their transformation.
As a viewer, get ready to be entertained like never before and thank the cloud that has brought loads of entertainment closer to you like never before!