MediaTech Radar has become a monthly newsletter, previously issued bi-weekly. This edition of the newsletter is produced by IABM’s Senior Analyst Olga Nevinchana. It focuses on a spotlight topic in MediaTech and reflects on a series of past, present, and future business developments in the industry. In this edition, our spotlight topic is Cloud as a Driver of Change.
MediaTech Spotlight: Cloud as a Driver of Change
A spotlight topic in MediaTech.
- Last week, IABM published two new reports, both largely focused on Cloud. With the M&E industry moving towards SaaS and cloud operating platforms, the adoption of Cloud infrastructure became a major driver of investment in different segments of the content supply chain, particularly in producing, storing, managing, and distributing content. For example, content management it resulted in the growing demand for cloud-based AI/ML-powered MAMs and orchestration solutions, as discussed in detail in our new edition of the Content Management & Support report.
- Widespread Cloud adoption enabled the deployment of other technologies, such as Remote Production (driven by COVID), AI/ML (driven by the need for automation and interactivity), and OTT (driven by changing viewing habits), fueling investment in cloud computing, SaaS, and outsourced software development.
- Our new edition of the Cloud report contains data supporting the thesis about hybrid cloud being, for many companies, a transitional stage on the way to public cloud.
- Given the increasing fragmentation of viewership across streaming platforms and devices, cloud facilitates multi-platform content delivery and interactivity, particularly with the media industry converging with gaming, betting, and social media. For example, as mentioned in our recent APAC regional report, mobile remains the primary viewing platform for online video in the region.
MediaTech Watchlist: Crypto Payments, Streaming, and more…
A watchlist of selected past, present and future business developments in MediaTech.
- TVTechnology published an interesting article looking at the increasing interest and investment of media businesses in crypto payments. This is at odds with the recent crash in crypto markets, which saw major currencies such as Bitcoin or Ether lose much of their values in a very short period of time. Aside from the benefit of streamlining media payment methods through smart contracts, the article cites the peculiar business model adopted by Rewarded TV. Rewarded TV is a streaming platform offering free content and rewarding its users with cryptocurrency for watching it. Perhaps more interestingly, the service rewards users for content engagement activities such as: “sharing a specific piece of content or creating a playlist featuring certain movies or shows”. Despite the buzz circling crypto, I believe that we should not underestimate the potential benefits to viewer engagement through gamification offered by Web3 technology, which may unlock new business models the industry needs.
- MEDIAGENIX acquired Spanish MediaTech business BeBanjo in July 2022. According to the press release announcing the deal: “The acquisition generates a broad solution portfolio combining the WHATS’ON Media Business Management Platform with BeBanjo’s best-of-breed Movida VOD-first solution.”
- At the end of July 2022, Kaltura received an acquisition offer from K1 Investment Management-owned education software maker Panopto at a $383 million valuation – the third proposal over the last two months, increasing the bid. This offer was followed by an announcement about Kaltura’s reorganization plan at its Q2 2022 Earning Call: “Given the macroeconomic outlook, we are implementing a cost-reduction and reorganization plan that includes, among other things, downsizing approximately 10% of our employee base. Our reorganization plan is heavily focused on realigning our operations to further increase efficiency and productivity. We believe this necessary action will accelerate our return to the profitable growth that we achieved in previous years.”
- At the end of July, the T.C filed for a highly unusual antitrust lawsuit against Meta with the aim of blocking the company from buying a virtual reality company Within as part of Meta’s transition to the metaverse. The F.T.C. argued that Meta could have chosen to compete with Within instead of buying it. It is considered to be first of a kind antitrust case against acquisition of a start-up company in emerging tech area rather than against merging of large companies in large markets.
- Netflix lost subscribers for two quarters in a row in Q2 2022, mainly due to its core markets of the U.S. and Canada, while other streaming platforms, such as Paramount+, continue to grow viewership. To address the decline in viewership that started in Q1, Netflix partnered with Microsoft in July to create a cheaper ad-supported offering.
- NBCU will close its Olympic Channel in September 2022. This is consistent with NBCU’s intention to gradually move most programming to its streaming service Peacock, as highlighted by the words in the press release: “In order to best reach our target audiences, we are re-evaluating our programming distribution strategy.” This is also consistent with other broadcasters such as Disney shutting down linear sports channels to move content to streaming platforms.
Thank you for reading this newsletter. If there are topics you would like me to cover or have information/ideas you’d like to share, please get in touch with us.