The content and digital media (CDM) industry has undergone massive transformation as a result of ever-evolving social media, gaming and streaming media channels. From new content delivery and advertising models to constantly increasing consumer expectations, CDM companies are challenged to deliver better experiences and leverage technology and ecosystem partnerships to support that goal.
A new IDC white paper highlights the challenges in this new era of broadcasting and the opportunity for companies to take advantage of a digital platform and partner ecosystem to deliver fast, compelling user experiences. According to this IDC report, “Two years after the emergence of the global pandemic, the [media and entertainment] industry is still building on the vast growth of video traffic seen in 2020. During that period, the total volume of video delivered in the United States increased more than 60%, with growth posted for all consumption devices (phones, TVs, PCs, and tablets).”[1]
This change alone has emphasized the need for digital infrastructure and ecosystem partnerships that support this new era of broadcasting and content delivery. To rise above the competition, content and digital media companies need to build the infrastructure of the future—from the digital core to the edge—using a distributed, interconnected architecture that provides the flexibility and speed needed in a rapidly changing industry.
IDC Analyst Report– A digital ecosystem approach to support a new era of broadcasting
Rapidly changing consumer expectations and emerging digital services require the media and entertainment industry to embrace new digital strategies to survive.
Download Analyst ReportContent and digital media companies face challenges and opportunities
The pace of industry transformation in broadcasting and across content and digital media channels has been astounding—no doubt accelerated by the pandemic. The new IDC report—which focuses on broadcasting, broadly defined to include all TV, movie and other video content distributed over the air, on pay TV and over the internet—argues that the industry has moved to a new era characterized by rapid service evolution and new forms of distribution and monetization. Many of the changes in the industry will be familiar to media consumers:
- More people moving from pay TV to over-the-top (OTT) streaming viewing options
- Expansion to global audiences
- Hybrid business models that offer subscription, ad-supported and free content tiers
- Availability on multiple devices such as tablets and smartphones with the use of voice assistants like Alexa, VR headsets, etc.
Additionally, in the age of streaming media, consumers are more demanding than ever about the quality and speed of content delivery, putting pressure on already-strained infrastructure. Personalized experiences are now expected; more augmented experiences and virtual reality are also on the horizon, which will require advanced data and AI capabilities.
These changes put greater demand on infrastructure and add complexity to IT environments that often already carry significant technical debt. To compete in such an environment, companies need to rearchitect their infrastructure for future success.
Digital infrastructure paves the way to future success
A modernized infrastructure creates a foundation for future success in the new era of broadcasting. Media companies need to be on the cutting edge of technology to outpace fierce competition across the industry.
The IDC report identifies five important infrastructure and platform qualities of a redesigned digital infrastructure for content and digital media companies:
- Support for hybrid multicloud architectures.
- Low-latency data transmission to address performance requirements.
- Cost-efficient data transportation to meet the right balance point for budget and performance.
- Cloud-adjacent innovation that enables companies to connect.
- Ability to access ecosystems and extend to anywhere people and data reside.
These requirements will support the needed digital transformation for media industry companies as they speed toward a more interconnected future.
Realizing the benefits of digital core, ecosystems and edge
Leveraging the three components of digital infrastructure helps content and digital media companies gain a competitive advantage by being everywhere their customers are—when their services are in demand. Deploying digital infrastructure allows companies to deliver immersive experiences, scale up and down as the market dictates and quickly expand to other geographies.
- Interconnecting at the digital core is where businesses establish corporate networks, multicloud and regional back-end data infrastructure locations. Content and digital media companies can use these so-called “core metros” to provision capacity between networks, clouds, XaaS providers and their digital infrastructure. Deploying digital infrastructure in these carrier-neutral locations removes traditional technology-related limitations.
- Interacting at the digital edge is where businesses bridge the physical and digital worlds by deploying their digital infrastructure at the locations with the greatest digital engagement. Organizations can connect to customers, edge devices, and places of business and participate in local marketplaces at edge metros. Whether it’s supporting dynamic mobile workforces, developing business-relevant insights or providing differentiated experiences, there are many reasons it’s essential for content and digital media companies to position their infrastructure at the digital edge.
- Integrating with digital ecosystems helps businesses tap into the largest business ecosystems, enabling them to drive innovation and outpace the competition. Content and digital media companies that combine direct digital ecosystem access with the power of interconnected digital infrastructure can rapidly generate new value through the integration of SaaS, data marketplaces and commercial services.
Increase flexibility with Interconnection Oriented Architecture
Forward-thinking businesses design their digital infrastructure around points of interconnection, unlocking greater flexibility and more opportunities for business growth. We call this consistent deployment pattern Interconnection Oriented Architecture® (IOA®). In contrast to traditional, centralized IT infrastructure, IOA puts businesses in a position to respond to change quickly and thrive in the digital economy.
Interconnection bridges all things digital: core, edge and ecosystems. Content and digital media companies can connect private and public clouds, physical and virtual infrastructure, and merge data sources, enabling content creators to scale production, interconnect with more partners, improve the customer experience, and innovate for the future.
Capitalize on deploying digital infrastructure from a single platform
By deploying digital infrastructure in core and edge locations on Platform Equinix®, content and digital media companies get access to our extensive interconnected ecosystems of enterprises, partners, and network, cloud and IT service providers. Our portfolio of digital services can help content and digital media companies deploy digital infrastructure that enables fast, secure content delivery to drive exceptional user experiences at the digital core and edge.
To learn more about how media and entertainment companies are embracing new digital strategies, read the IDC white paper “A Digital Ecosystem Approach to Support a New Era of Broadcasting” today.
You may also be interested in viewing this conversation: “Unveiling the Digital Infrastructure Building Blocks to a Successful User Experience”:
[1] IDC white paper, sponsored by Equinix, “A Digital Ecosystem Approach to Support a New Era of Broadcasting,” Doc #US49074222, May 2022.