In the second of TVBEurope’s new series looking at the key trends in the media and entertainment industry during 2023, Remi Beaudouin, chief strategy officer at Ateme, discusses the rise in interest of adopting hybrid deployments that optimise the mix of cloud and on-premise, and how generative AI could revolutionise how content is produced, consumed, and monetised.
What industry trends have particularly stood out for you in 2023, and why?
Three industry trends have particularly stood out for us in 2023:
Focus on profitability: As the media and entertainment industry feels the crunch of the economic situation, buyers are focusing on streamlining their operations to do more with less. They are also reducing risks and their Total Cost of Ownership by becoming more agile and pragmatic. This means they are adopting new buying behaviours. We see increasing interest in efficient technologies, in adopting hybrid deployments that optimise the mix of cloud and on-prem, and in Software-as-a-Service (SaaS) models. The other side of profitability, of course, is increasing revenues. Dynamic Ad Insertion for targeted advertising is being propelled to the forefront, and there is growing interest in FAST channels and shoppable TV.
Environmental considerations: 2023 is the year that environmental concerns finally started to gain attention in the media and entertainment industry – at least in Europe, which has been particularly affected by climate change. While there is no consensus on how to measure or reduce the carbon impact of media services, there is at least collective awareness that this needs to be done. Media companies are making efforts to minimise their energy consumption and adopt eco-friendly practices as part of their commitment to environmental responsibility.
Generative AI: It is perhaps not yet a trend, but generative AI is increasingly generating buzz within the industry. That’s because it promises to boost performance on so many levels. Through Generative AI, media companies could potentially automate content creation, streamline production workflows, enhance content quality, and even personalise content delivery, recommendations, and ad placements for viewers. Ultimately, generative AI could revolutionise how content is produced, consumed, and monetised.
What impact are you seeing those trends having on the media and entertainment industry?
These trends are having an impact across several dimensions of the media & entertainment industry.
Changing business models: As the industry focuses on reducing TCO and becoming more agile, there is a growing shift toward Software-as-a-Service (SaaS) and subscription-based models. There is also a hybridification of workflows. More and more services migrate to public clouds, yet service providers also seek to optimise the balance between on-prem and off-prem. So this isn’t a ‘’one-fits-all’’ approach but rather a mix of various infrastructure choices. Meanwhile, to appeal to younger generations and stay relevant, the industry is exploring new experiences, such as shorter forms of video and immersive content. While these innovations are generating excitement, we have not yet seen widespread deployments.
Environmental considerations enter RFPs: With growing awareness that the industry must redesign its technologies and operations with a focus on sustainability, green credentials are increasingly making their way into the requirements in Requests For Proposals (RFPs).
Exploration and excitement: As far as Generative AI is concerned, the industry is in an experimental phase, with stakeholders still exploring the possibilities. There has been no concrete impact so far beyond excitement – which, of course, is an essential ingredient for fostering innovation.
How do you see those trends developing further in 2024?
In 2024, we anticipate these ongoing trends to develop further.
Continuous focus on efficiency: We expect the drive for more efficient operations to gain further momentum in 2024. Media and entertainment companies will continue to optimise their workflows, explore cost-effective technologies, and fine-tune their mix of on-premises and off-premises solutions. Efficiency will remain a key objective as companies seek to maximize returns on their investments.
Industry-wide sustainability consensus: Building on the awareness of environmental issues seen in 2023, it is my hope that the media and entertainment industry will make substantial progress in 2024 toward reaching an industry-wide consensus on how to measure and reduce the environmental footprint of video services. This would likely involve the development of standardized metrics and practices to assess and minimize the energy consumption of media technologies.
Innovative use cases for Generative AI: While Generative AI generated significant excitement in 2023, 2024 may be the year when we start to see practical use cases being launched. As the industry gains a deeper understanding of the capabilities of Generative AI, we can expect to see creative applications that enhance the viewing experience, streamline production, and offer new possibilities for content delivery.
Do you expect to see any new trends within the industry in 2024, and what will they be?
One of the emerging trends to watch out for in the media and entertainment industry in 2024 is Spatial Computing. This enables the digital world to interact with and enhance our physical environment. It combines augmented reality (AR), virtual reality (VR), and mixed reality (MR) to create immersive and interactive experiences. While we don’t yet have a complete understanding of the full impact it will have, there is considerable excitement and anticipation surrounding its potential.
Spatial Computing can enable viewers to interact with and manipulate content in ways that were previously not possible, paving the way for new and engaging experiences for audiences. It may lead to innovative storytelling methods, interactive gaming experiences, and even more immersive virtual events.
While we can’t predict the full extent of its influence just yet, Spatial Computing has the potential to disrupt and redefine the way media and entertainment content is consumed.