Skip to main content

Global Media and Entertainment Industry Cloud Services

In order to manage the growth of digital media applications, as well as the increase in online video consumption on multiple screens, the media and entertainment industry must balance the need to support complex production and distribution-oriented IT workflows with an uncertain product revenue potential.

Cloud services offer an attractive solution to this dilemma, as they can help all types of media and entertainment companies to automate their business processes and workflows more effectively -- because they're more scalable, flexible and reliable in the cloud.

These agile cloud solutions are also more cost-effective and convenient, since they do not require any upfront infrastructure investment and can be paid for according to usage or through a subscription model.

According to the latest global market study by Frost & Sullivan, they found that this nascent cloud services market earned revenue of only approximately $100 million in 2013, but will grow nearly nine-fold by 2020.

Their market study covered specific well-established classes of media and entertainment oriented cloud solutions -- such as video transcoding, animation tools and media asset management; as well as niche solutions like metadata, closed captioning, and subtitling services.

Although North America is presently the biggest market for media and entertainment solutions in the cloud, the Asia-Pacific region is expected to open up the most opportunities for solution providers over the next five years.

Established IT vendors such as Amazon, Adobe and Microsoft are leading the media and entertainment cloud market. The three vendors constitute 34.5 percent of the market. However, smaller vendors with niche specialization are also growing in the evolving marketplace -- companies such as Prime Focus.

Cloud Service Market Development Challenges

"The constant pressure to decrease IT budgets and invest resources in generating high-quality, creative content is driving media and entertainment companies globally to adopt cloud solutions," said Avni Rambhia, principal analyst at Frost & Sullivan.

This growing market demand, along with the need to maintain data on the cloud to prevent data losses due to natural catastrophes, is boosting the prospects of cloud solution vendors in the media and entertainment sector.

But the IT leadership of legacy media companies -- that are typically accustomed to having on-premises systems -- are wary of embracing the cloud in a large way. Concerns surrounding the lack of high-bandwidth internet connectivity in some parts of the world are preventing the market from reaching its full potential.

However, service providers are responding to these challenges by creating more awareness on the apparent benefits of cloud solutions and allaying fears regarding the security of content on the cloud. They are also deploying open hybrid cloud platforms that can be easily integrated with the customer's existing on-premise data center infrastructure.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence