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

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch