The demand for direct-to-consumer services and media content is continuously growing, and with that, audiences are raising their expectations of media and entertainment companies. Agile and innovative companies, such as Netflix, YouTube, and Amazon Prime, have arguably created and continue to enable the current viewership trends.
These streaming services have disrupted the traditional media landscape by empowering audiences to watch any content wherever and whenever they want. To accommodate new audience behaviors, relevant media companies use technologies to support the modern-day digital media supply chain, which has become increasingly complex to manage.
However, legacy media companies have something that audiences still want: content. Most of these institutions have massive budgets for content production and enormous existing media libraries that have latent revenue potential. For example, legacy media brands own nostalgic cult classics, like “The Office,” that viewers will always want to watch, even though they have watched these episodes multiple times before.
As the volume of content consumption and demand increases, media organizations will find that a traditional media supply chain will constrain their ability to grow and meet customers in their preferred venues, despite owning a broad range of content that viewers want to watch. In order to keep up with audience demand, media companies will need to transform their media supply chains, so that they can distribute their media quickly and at scale, or they risk falling behind. Cloud technologies are the key to modernizing digital asset management, metadata models, quality control, and content delivery networks.
The Challenges of a Traditional Media Supply Chain
There are a lot of moving parts and behind-the-scenes work for media and entertainment businesses to push media assets to audiences. The media supply chain is the process used to create, manage, and deliver digital media from the point of origin (creator, content provider, content owner, etc.) to the destination (the audience.) For the right content and best experience to reach users on devices and platforms of their choice, digital media files must pass through various stages of processing and different workflows.
Media supply chain management is challenging and if there are inefficiencies within this process, issues that will ultimately affect the bottom line will crop up. The following are top challenges of media supply chain management:
The content wars are in full swing, and as a result, the media and entertainment industry has seen an influx of divestitures, mergers, and acquisitions. Organizations are accumulating as much content as possible by bolstering their media production with media acquisition, but as a result, content management has become more difficult. With more content comes more problems because this introduces more siloed third-party partners. As companies merge, the asset management system becomes decentralized, and media files and metadata are spread across different storage arrays in different datacenters that are managed by different MAMs with various metadata repositories.
Reliance on Manual Processes
Legacy media companies have been around much longer than modern technologies. As a result, some of these organizations still do many media production and distribution tasks manually, especially when it comes to generating, reviewing, and approving metadata. Metadata is essential for sorting, categorizing, routing, and archiving media content, as well as making the content accessible to a global, diverse audience. Using manual processes for these functions not only severely slows down a business, but they are also susceptible to human-error.
Quality of Media Assets
Today, consumers have the latest technology (4K TVs, surround sound systems, etc.), which requires the highest quality version of content sources. With dispersed content libraries and team, working derivative edits to meet localization and licensing requirements and locating native frame rate masters can be a challenging and time-consuming problem to tackle.
Benefits of Using Cloud Technology to Modernize the Media Supply Chain
Cloud-based technologies can help manage and resolve the issues typically encountered in a media supply chain. If media organizations do not utilize cloud solutions to modernize their supply chain, they risk being less agile to meet global audience demand, incurring higher costs to deliver media, and eroding viewership.
Legacy media brands are recognizing the consequences of not adopting modern technology to support their media supply chains, and recently, we’ve seen established media corporations partnering with cloud service providers to undertake a digital transformation. A recent and newsworthy example of this is the MGM and AWS partnership. MGM owns a deep library of film and television content, and by leveraging AWS, MGM is able to distribute this content with flexibility, scalability, reliability, and security to their audiences. AWS offers services and tools to modernize MGM’s media supply chain to be able to distribute content across multiple platforms quickly and at scale.
Businesses don’t need to strike historic deals with cloud service providers to receive the same benefits. By transforming into a cloud-based framework, any media company can reap the following major benefits of modernizing their media supply chain:
Scale and Agility
This point cannot be repeated enough because, again, customer media consumption is rapidly increasing, and businesses must find a way to meet those demands in order to retain customers and remain competitive. With cloud computing, the media supply chain is no longer limited to the capacity of on-premise data centers or the capital expenditure budget that was forecasted a year earlier. Using cloud technology allows organizations to be dynamic and flexible to adjust for growing demand. Businesses can easily scale services up (or even down) based on audience demands by simply adding (or removing) more cloud resources, which is easier and more forgiving than having to add more infrastructure or being stuck with wasted databases.
Cloud services employ pay-as-you-go billing, which allows companies to pay for what they use rather than paying a fixed cost that may not fit their needs later on down the road. Most importantly, using the cloud removes the maintenance and operational costs associated with maintaining data center footprints. The costs of server hardware, power consumption, and space for traditional data centers can really add up, especially because these costs are inflexible based on actual consumption. Utilizing cloud technology provides flexibility in billing and trims down maintenance costs.
Automation and Efficiency
Cloud services offer tools that can handle abstract operational complexities, like metadata management, that were historically done manually. These automation and AI features can dramatically reduce the need to manually generate this metadata because it implements machine learning and video, audio, and image recognition to largely automate the generation, review, and approval of metadata. Harnessing the power of automation frees up teams’ resources and time and redirects that energy on impactful, business-differentiating activities.
Large audiences also means large amounts of data. Massive volumes of both structured and unstructured data requires increased processing power, storage, and more. Cloud computing has the scalable infrastructure to rapidly manage huge spikes of real time traffic or usage. Moreover, cloud service providers offer a variety of analytic tools that enable extract, transform, and loading of enormous datasets to provide meaningful insights quickly. Media companies can harness this data to improve user experiences and optimize supply chains, all of which greatly affects their bottom line.
How do I Get Started in my Media Supply Chain Transformation?
The process is less daunting than you think, and there are experienced cloud advisors and consulting firms who can point you in the right direction. At 2nd Watch, we embrace your unique modernization journey to help transform and modernize your business and achieve true business growth through cloud adoption. To learn more about our media cloud services, visit our Media and Entertainment page or talk to someone directly through our Contact Us page.