Samira Bakhtiar, general manager of media & entertainment, games, and sports at Amazon Web Services (AWS), highlights why diversification is becoming mission critical for media companies
By Contributor
Published: December 11, 2024 Updated: December 12, 2024
Samira Bakhtiar, general manager of media & entertainment, games, and sports at Amazon Web Services (AWS), highlights why diversification is becoming mission critical for media companies
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Video streaming has upended traditional viewing habits and spawned multi-billion-dollar companies in just a few decades. Audiences have higher expectations for content quality and accessibility than ever before and increased appetites for personalised entertainment experiences across an expanding array of platforms and devices. Coupled with recent advancements like generative artificial intelligence (AI), that demand is prompting companies to broaden intellectual properties (IP) into new verticals and adopt new tools to expand their reach, relevance and revenue. As a result, we're seeing multiple disruptions taking place that are setting the stage for an industry-wide convergence that will unlock new forms of entertainment.
Samira Bakhtiar, general manager of media & entertainment, games, and sports at AWS Shifting viewer trends Across online video, games, music, and features, global consultancy firm Omdia predicted the entertainment industry would surpass $1 trillion in value in 2024, with 35 per cent of that revenue coming from online video and 25 per cent coming from gaming. While those numbers seem staggering, consider that 5.75 billion people have mobile devices, frequently consuming content on-the-go. Additionally, 3.5 billion people play video games each week globally, whether it's immersing themselves in virtual worlds for hours or spending a few minutes decoding a five-letter word.
It's no longer sufficient to be great at just one type of media - versatility is imperative. That means broadcasters are now also streamers, games companies are now broadcasting and streaming companies, and live events companies are now building gamified experiential activations. The lines are blurring as media companies look to capture their target audience's attention and seize monetisation opportunities.
However, this abundance of entertainment options is also contributing to shorter attention spans as viewers navigate different devices, platforms, and channels. Shorter attention spans can lead to fragmented experiences as audiences jump from one piece of content to the next. This makes it difficult for entertainment companies to understand and cater to their respective audiences.
Technology transformation The problem with diversification is that it can introduce technical and logistical challenges. To meet audience demands, M&E technology teams need to be able to quickly spin up a new game studio or game servers; or become a movie streaming business; or stream live election night coverage for the first time. That's no small feat. True reinvention means embracing change, from the tech stacks to the right cloud solutions, so that customers can grow and scale to engage audiences in new ways.
Convergence in play Epic Games, a leading interactive entertainment company and developer of Unreal Engine, is an example of a company driving this convergence. Epic operates Fortnite, one of the most-played video games in the world, and IP convergence is key to Fortnite s experiences, as brands and artists enter the digital world. After a live Snoop Dogg concert was recently streamed in-game to ten million players, the artist is being featured in the game for a limited time, introducing a new generation of fans to his music. The public concert was held in New York City's Times Square backed by fantastical visuals synchronised across the massive iconic digital displays, which also notably screened the live 2004 series finale for popular broadcast series Friends.
Epic's Fortnite cross-over events are mutually beneficial; the game's audience grows as new content or experiences are added and collaborating brands get to highlight their IP to a massive global audience in a new way. Having the right tech stack in place to support these initiatives is essential, which is where the cloud comes into play. It provides the necessary agility to scale, centralises digital assets so that they can be repurposed more efficiently, and provides an easier path to leveraging advanced tools, like AI.
It's clear the entertainment industry is undergoing a seismic shift, in which reinvention creates new opportunity for those willing to embrace it. As it does, the cloud is unlocking new avenues to captivate audiences across video, gaming, music, and film in ways we never imagined. As audiences demand more interactive experiences, traditional companies that diversify and explore new partnerships will reap the benefits.
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Samira Bakhtiar, general manager of media & entertainment, games, and sports at Amazon Web Services (AWS), highlights why diversification is becoming mission critical for media companies
