Sony Pixel Power calrec Sony

Cutting costs or cloudy vision?: The dilemma of media companies' data centres

02/03/2023

When done right, gradually moving media operations from on-premises deployments to the cloud can bring efficiencies and savings, writes Dan Goman, founder and CEO, Ateliere

By Contributor

Published: March 2, 2023

When done right, gradually moving media operations from on-premises deployments to the cloud can bring efficiencies and savings, writes Dan Goman, founder and CEO, Ateliere

target=_blank title=Share on LinkedIn class=share-linkedin>

Mergers, acquisitions or the great consolidation, call it what you wish, but business dynamics in the media and entertainment industry keeps shifting in front of our very eyes. These measures are often designed to stay competitive, avoid subscriber churn or justify a dwindling streaming service.

Such radical, often sudden, strategy shifts come with major technology and financial pitfalls, particularly in the media industry, where delivering complex products to highly fragmented consumers is the order of the day.

Merged and acquired companies each come with their own media supply chain (even multiple chains!) and technology baggage. How these can be efficiently unified for cost-savings remains a difficult challenge to streaming success.

The broken media supply chain As it's become obvious from recent financial announcements, the cost of operating streaming services, often alongside linear broadcast or cable TV offerings, is extremely high. Media companies are being asked to deliver more content to more outlets with the same traditional tools and processes. Streaming has broken the current production and distribution media supply chain.

And when streaming companies need to efficiently integrate a business acquisition, media supply chains are often the last priority in boardroom's discussions. Yet, each media organidation comes with thousands of large files, fragmented metadata, siloed departments and aging data centres. How to efficiently integrate content and workflows into a unified infrastructure that serves the purposes of the newly-formed business? This is an expensive puzzle to solve.

The missed cloud opportunity Although the media industry has been slow in adopting cloud infrastructure, moving media operations from on-premises deployments to the cloud can bring efficiencies and savings when done right!

This is particularly true when streaming services are looking to combine their offerings, as is the case with the recent Paramount Plus and Showtime bundling initiative. A global media supply chain in the cloud makes significant business sense as it helps centralise content libraries, simplify workflows and localise content.

With sustainability becoming high in most media companies' agenda, running on-premises data centres is a considerable environmental concern, especially if the alternative can deliver cost savings. Plus, if your core business is not technology, it is difficult to justify in-house investments to keep up with the rapid cloud innovation from the major cloud service providers.

Sadly, it's not all rainbows and butterflies in the cloud. One of the primary blockers to a wholesale migration of the M&E industry to the cloud is what I call the file movement tax or egress costs. Our industry works with large files, and the simple need of moving content around remains prohibitive. Our clients have concocted impractical deployments with wacky configurations to avoid this tax.

Egress cost is one of the main reasons why media companies are still justifying having their on-premises deployments and data centres. Hard to argue with when you'd be talking about millions of dollars in cloud egress costs alone.

This is where cloud services providers are missing a huge business opportunity. They should be looking for ways to make it more attractive to move on-premises data centres to the public cloud. Enough said.

Doing it right In our experience working with hundreds of media companies, it is possible to succeed in the race to turn a profit by streamlining operations into the cloud. Businesses need to future-proof their technology in order to handle petabytes of new content, increase their subscriber base, distribute globally, and integrate all their legacy systems.

We see four key areas to focus on:

Implement a unified content supply chain in the cloud: It's not always possible to do a wholesale move to the cloud, especially for large enterprises. Start with a cloud layer that connects fragmented systems together and enables a gradual transition from on-premises operations. This may mean that you operate in a hybrid mode during the transition period.

Evaluate infrastructure and system redundancies: Consider what to keep, what to eliminate, and what to move to the cloud.

Mergers and acquisition integration using the layer approach : Get your media supply chains talking to each other quickly by layering the cloud media supply chain platform on top of your existing platforms and systems. This gives you time to run a proper systems integration process, while avoiding hiccups in your monetisation workflows.

Localisation is key: Implement a future-proof foundation by adopting a component-based workflow that enables highly efficient packaging of content for global distribution. This will enable the business to generate revenue and compete in the streaming world.

Over the coming years, content will remain king in determining success or failure for streaming services, with the best shows drawing significant amounts of subscribers. I also believe that the streaming wars will be won or lost in international markets, so having the right tools for localisation is essential.

A well thought-out, global content supply chain in the cloud that delivers the right content to the right viewers quickly and efficiently should be part of every media company's streaming arsenal.
LINK: https://www.tvbeurope.com/media-management/cutting-costs-or-cloudy-vis...
See more stories from tvb

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

23/10/2026

CBS Sports Adds U.S. Spanish-Language Rights for Concacaf Champions Cup on Paramount+

CBS Sports will be the exclusive U.S. Spanish-language rights holder for the Con...

23/10/2026

Fubo Closes Seven New RSN Distribution Agreements for 2026-27 NBA Season

Fubo has announced new distribution agreements for carriage of seven regional sports networks for the 2026-27 NBA season. Through those agreements, the Fubo str...

23/10/2026

CBC/Radio-Canada Selects Dalet Pyramid to Modernize News Operations

CBC/Radio-Canada has selected Dalet to modernize its news operations across Canada, deploying Dalet Pyramid across the organization. CBC/Radio-Canada operates 2...

23/10/2026

EZDRM Granted Patent for DRM Delivery Over WebRTC

EZDRM has been granted US patent 12,659,532 for a method of delivering DRM-protected content over low-latency WebRTC (Web Real-Time Communication) infrastructur...

23/10/2026

Audio-Technica Acquires Hollywood Facility to Expand West Coast Presence

Audio-Technica has acquired a new facility in the Hollywood Media District in Hollywood, California, expanding its U.S. operations. The 8,966-square-foot, two-s...

23/10/2026

Audio-Technica to Exhibit Microphones and Headphones at AES Show Nashville 2026

Audio-Technica (booth 514) will display its studio and live sound microphones and headphones at AES Show Nashville 2026, taking place Saturday, Oct. 31, and Sun...

23/10/2026

Stephen Arnold Music Details Role of Sonic Branding as Teams Take Over Local Sports Broadcasts

As regional sports networks (RSNs) decline, teams and leagues are producing more...

23/10/2026

ACC Study: More Americans Would Take Pride in Visitors Feeling Welcome at LA28 Than in Team USA Winning the Most Medals

Acceleration Community of Companies (ACC) has released The People's Games: W...

23/10/2026

GameTime Productions Uses Stripe TV's Lightbox and Telestripe for Portable Telestration

GameTime Productions is using Stripe TV's Lightbox and Telestripe wireless t...

23/10/2026

CLOUDflex Broadcast Integrates ZoomISO Cloud Into Its Platform

CLOUDflex Broadcast has announced a direct integration with ZoomISO Cloud, Zoom's remote contribution solution for cloud-based media production systems. Dev...

23/10/2026

TMRW Sports Names Chris Zaber SVP of Ticketing and Venue Experience

TMRW Sports has appointed Chris Zaber senior vice president of ticketing and venue experience as the company continues to build out its portfolio of sports prop...

23/10/2026

Wheelhouse and Omaha Productions Invest in BBQ World Cup & Expo

The BBQ World Cup & Expo has announced an investment from Wheelhouse, the content, talent and investment company founded by Brent Montgomery, and Omaha Producti...

23/10/2026

Bally's and BKB Launch Bally's Fightnight by BKB Franchise With ForceIQ Punch Data

BKB Bare Knuckle Boxing and Bally's Corporation have unveiled Bally's Fi...

23/10/2026

Yahoo Sports Launches Perfect 5 Fantasy Game for NBA on Prime Broadcasts

Yahoo Sports has launched Perfect 5, a free-to-play fantasy basketball game tied to each week's marquee NBA on Prime matchups. It is designed to run alongsi...

23/10/2026

NEP Connected Solutions' Steve Grigely on Continued Remote Production Expansion

At the SVG Remote Production Summit at Techwood Studios in Atlanta, Steve Grigel...

23/10/2026

Dirtcam, Expanded Specialty Cameras Highlight Fox Sports World Series Production

Fox Sports will broadcast game one of the 122nd World Series tonight from Milwaukee as the Milwaukee Brewers and Tampa Bay Rays square off. And with a crew of 4...

23/10/2026

Prime Video Tips Off Second NBA Season With AI-Driven Prime 360 Photorealistic Virtual Camera System

Emmy-winning Culver City studio, bicoastal Game Creek Video mobile units return ...

23/10/2026

FOX Sports Gives Series Sound a Refresh With New People on the Audio Team, New Parabolics

A playoff season featuring three series sweeps allows broadcast crews extra time...

23/10/2026

fedDSP launch ECO delay plug-in

Creative and versatile echo effect fedDSP have released ECO, a delay plug-in designed to cover everything from straightforward repeats to more experimental ...

23/10/2026

UJAM release DETUNICORN

A FREE hypersaw synth in time for Halloween UJAM have announced Detunicorn, a free collectable synthesizer plug-in designed to produce the thick, detuned hy...

23/10/2026

Adhoc notification: SGL Carbon sells its former Carbon Fiber facility in Moses Lake (USA)

(4:10 PM) Wiesbaden, October 23, 2026. As part of the restructuring of the forme...

23/10/2026

SMPTE to Hold Tech Summit in Conjunction With NAB Show NY Starting in 2027

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

DirecTV to Showcase Unique Sport Equinox on Oct. 26

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

Territory Group Launches Lux Meridian, New AI-Native Film and Television Production Studio

Territory Group Launches Lux Meridian, New AI-Native Film and Television Product...

23/10/2026

SipRadius provides rapid response to PHP concerns

SipRadius, widely recognized for making content processing and connectivity secure and seamless, has responded promptly to the global issue of PHP vulnerabiliti...

23/10/2026

Comcast Plans Restructure, Layoffs

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

Locality Appoints Saul Stetson as SVP, Head of Product

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

University of North Florida Athletics, Cox Media Sign Multiyear Broadcast Deal

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

CBC/Radio Canada Taps Dalet to Modernize News Operations

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

SWIT Introduces Compact, Gold Mount Batteries

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

Hearst Television VP, Finance Stanley Herriott Sets Retirement

Share Copy link Facebook X Linkedin Bluesky Email...

23/10/2026

Ayrton Launches Falconer

A Brand New, Ultra-high-performance Remote Followspot Control System Ayrton has released Falconer, a brand-new, ultra-high-performance remote followspot system...

23/10/2026

Scripps Research Nobel laureates Ardem Patapoutian and K. Barry Sharpless among first honored by new Wertheim Laureate Prize

LA JOLLA, CA-The newly launched Wertheim Laureate Prize invites Nobel laureates ...

23/10/2026

Vegas Pro Delivers Professional Color Management and Faster Renders

Vegas Pro Delivers Professional Color Management and Faster Renders Jessie Electa Petrov October 22, 2026 0 Comments The 2027 release from Boris FX st...

23/10/2026

Blackmagic Design Announces Price Increases Due to Rising Memory Costs

Blackmagic Design Announces Price Increases Due to Rising Memory Costs Brie Clayton October 22, 2026 0 Comments New prices across a range of products ...

23/10/2026

Berklee Welcomes Marcus Gilmore for Signature Series Performance

Berklee Welcomes Marcus Gilmore for Signature Series Performance The two-time Grammy Award-winning drummer, composer, producer, and bandleader will also lead ...

23/10/2026

Season 30 of The Voice Features a Record Number of Berklee Alumni

Season 30 of The Voice Features a Record Number of Berklee Alumni Learn more about Dakota Cohen, Brandon Diaz, Nina Howland, and Zalissa Stewart, plus how the...

23/10/2026

The Dyers Caravan Park: A Merry Elfing Christmas (w/t) coming to Sky and NOW

Can Danny and Dani's grand plans save Christmas, or are they heading for a festive fiasco?Friday 23 October 2026 The Dyers' Caravan Park: A Merry Elfin...

23/10/2026

Matchday Ready: Ella Toone & Keely Hodgkinson Star in New WSL Series

Friday 23 October 2026 Matchday Ready: Ella Toone & Keely Hodgkinson Star in New WSL Series Sky Sports has launched Minus 1, a new social series that pairs th...

23/10/2026

iPhone Duo arrives at Apple Store locations worldwide - PHOTOS - Posted on 23 October 2026

On Friday, October 23, the highly anticipated iPhone Duo made its debut at Apple...

22/10/2026

Router Control Strategy: UCP Panels, WebPanel, and NBOSS

Router Control Strategy: UCP Panels, WebPanel, and NBOSS Selecting a broadcast router control system is far more than a panel procurement exercise. The control ...

22/10/2026

BeckTV, Beam Dynamics, Providius Connect System Design, Asset Intelligence, and Live Monitoring

BeckTV, Beam Dynamics, and Providius have announced a collaboration linking Beck...

22/10/2026

NETGEAR Enterprise Extends Professional Services to NDI AV-over-IP Workflows

NETGEAR Enterprise has extended its Professional Services program beyond the network layer to cover AV-over-IP workflows, with NDI as the first ecosystem partne...

22/10/2026

USSI Global Promotes Ted Korte to Chief Technology Officer

USSI Global has promoted Ted Korte to Chief Technology Officer (CTO). The promotion follows the recent appointment of Ed McGivern as Chief Revenue Officer as th...

22/10/2026

Calrec Appoints Video Progetti as Italian Distribution Partner

Calrec has appointed Video Progetti, a Rome- and Milan-based broadcast distributor and AV system integrator, as its distribution partner for Italy. Video Proget...

22/10/2026

NHL Tonight to Celebrate 5,000th Episode on Oct. 27

NHL Network's NHL Tonight will mark its 5,000th episode on Tuesday, Oct. 27, at 7 p.m. ET. The milestone covers episodes since the show began broadcasting f...

22/10/2026

CURE Insurance Arena Installs New Daktronics Displays

CURE Insurance Arena in Trenton, New Jersey, has partnered with Daktronics to install a five-display centerhung system and three entrance displays. Installed th...

22/10/2026

Arkona Adds Native Integration With Bitfocus Buttons

Arkona technologies has announced native integration between its BLADE//runner AT300 platform and Bitfocus Buttons, the control system from Bitfocus. The arkona...

22/10/2026

U2 to Headline Halftime Show at NFL Thanksgiving Eve Game on Netflix

U2 will perform at halftime of the NFL Thanksgiving Eve Game on Netflix, celebrating the band's 50th anniversary. The game, the first NFL Thanksgiving footb...