Build-up to IBC2024: Content Everywhere companies take stock

Since this newsletter is dedicated to the companies that are to be found in the Content Everywhere zone housed in Hall 5, it seemed an opportune time to ask the exhibitors to reflect back over the period since the previous IBC in September 2023, and highlight some of the key industry trends that are affecting their businesses.

As Martin Sebellius, CEO of Accedo Video Solutions, notes, the broadcast and media industry has faced an evolving array of challenges over the past twelve months.

“Consumers have continued to exercise caution over spending; providers are having to cater for an ever-growing number of devices and platforms; content acquisition costs are increasing; content rights management has become more complex; and the industry is moving at such a fast rate that video service providers need a high level of flexibility and scalability in their tech stack,” he says.

And that’s not all, Sebellius adds. “To remain competitive and to be successful, video service providers must also deliver a consistently excellent user experience which when you consider the many factors involved, is an incredibly complex challenge; providers must consider the interface, content, regional and cultural differences, age-related nuances, and the fact humans are complex and their needs and preferences change over time and also day-to-day,” he says.

The AI factor

Jane Sung, COO of Cinedeck, is not the only industry professional to point to the rapid evolution of AI in recent months.

“It has been interesting to see reactions to this relatively new kid on the block, and how companies such as Cinedeck are starting to embrace it. While it remains a small part of our offering currently, we do see its place in automation, having introduced AI to offer live AI captioning and translations, marking a new era in media production efficiency and accessibility,” Sung comments.

Narayanan Rajan, CEO of Media Excel, notes that each technology transformation for media workflows has brought its own unique challenges and opportunities, pointing to the transition from hardware to software, to all-IP systems, and from on-premises to the cloud. Each transition, he observes, has come with the significant promise and fulfilment of numerous benefits but also with some very real operational, organisational, and financial challenges.

“With the AI technology transformation wave gaining traction, this dichotomy of benefits and challenges is even more prevalent. It is further complicated by a current reconsideration of cloud strategies as the bottom-line implications become more clearly understood. Thorough value assessments for integrating AI in the media workflow, including impacts on internal teams, clients and consumers, are critical,” he says.

Currently, Rajan adds, “one of the most practical applications for AI is in media encoding. These solutions offer quantifiable improvements around visual quality at lower bandwidths, delivering critical cost savings. Implementations of AI in other parts of the media value chain must seek to offer similar benefits of both technical and financial improvements.”

Lelde Ardava, sales and account manager at Veset, says automation and AI are starting to play a crucial role in the evolution of cloud playout.

“Over the past year, our approach towards cloud playout has shifted to more accurately reflect industry developments, focusing more intently on workflow automation and efficient delivery. With the constant change in consumer behaviour, it is essential for cloud playout and content providers to continue to evolve alongside this, rather than get lost amongst it,” Ardava says.

Meanwhile, David Wilkinson, CEO of Imagen from Reuters, notes that the sports industry has been discussing AI for decades, although he says its practical application and adoption have only gained momentum over the past five to seven years.

“However, we’ve found there’s still a lingering reticence to adopt AI. Despite this challenge, partnerships between sports organisations, AI startups, and technology companies have accelerated AI development, shifting the focus from AI as a means to an end to AI as a tool that underpins specific applications,” Wilkinson says.

He adds that AI has “made significant strides in video metadata creation, with models tailored to specific sports continuously self-learning and improving. This has led to vastly improved accuracy and reliability in sports video analysis. While initial investment costs may be a concern, long-term cost savings far outweigh this outlay. Ultimately, those who fail to adopt AI will struggle to create the immersive sports experiences that fans are asking for, and risk being replaced by those who do embrace it.”

Shuki Eytan, media and telecom general manager at Kaltura, also points to the way that generative AI is “revolutionising the way we create and consume content”.

“No longer limited to large organisations, this powerful technology is now in the hands of individuals, enabling them to produce high-quality, personalised content on a budget. That, however, is quickly becoming a challenge for many larger players in the streaming industry, as these creators are beginning to stake a claim in their market share,” he says.

According to Eytan, streaming services too must start to find new ways to put generative AI into use in ways that will benefit both their content curators and end-users. “It can start with features that users are accustomed to from other services, yet may not have come to TV, such as an AI chatbot that can interact with users and recommend content based on their current mood, as well as simplify the workflow of curators.”

He adds: “Service providers should also actively consider granting creators of AI-generated content permission to sell their content on the streaming service, or even utilise AI to curate new collections of AI-generated content for end-users.”

Where’s the money?

Paolo Cuttorelli, SVP, global sales at Evergent, says securing profitability has been one of the biggest challenges driving business and technology decisions for streaming companies this year.

“However, market saturation and high churn rates have made it difficult for media businesses to achieve sustainable revenue growth. We’ve seen a huge amount of innovation in how media companies engage with subscribers to translate into significant revenue gains across millions of customers,” Cuttorelli says.

Businesses are starting to get real about the money they are leaving on the table, he adds. “Avoidable revenue leaks caused by unsophisticated churn management strategies have been impacting media companies’ bottom line for too long. Market innovators are getting ahead by leveraging advanced analytics and AI to predict potential subscriber departures, tackling all flavours of churn before it even happens through intelligent payment retries, personalised offers, or intuitive pause and resume capabilities.”

Cuttorelli further notes that alongside more viewer-centric subscription options that give subscribers more control while allowing streaming services to monetise content in more dynamic ways, “media businesses are also championing new revenues through value-added service bundles, e-commerce, and loyalty-driven models. Through data-informed decision-making and highly personalised customer engagement tactics, streaming companies are achieving impressive, measurable improvements in retention and profitability”.

Sebellius from Accedo also observes that considering the current industry challenges, “it’s hardly surprising that video providers today are seeking ways to reduce costs, increase efficiency, improve flexibility, enhance UX, and tighten focus on core business activities such as content acquisition, monetisation strategies, and distribution. This is why we’re seeing a shift in the market with more and more service providers looking to outsource the management of their video service to an external partner.”

Dave Dembowski, senior vice president of global sales at Operative, describes the challenges brought by shifting consumer behaviour on connected TVs (CTV).

“Not only do audiences want the streaming experience, but they are also becoming more selective with their streaming subscriptions and embracing FAST. Live sports have become the draw for media companies to capture the mass audiences of linear TV, and streaming has provided advertisers with an opportunity to drive measurement beyond just awareness metrics,” he says.

Dembowski says this means that media companies are scrambling to accommodate both audiences and advertisers on the influx of new channels, “which can be risky and create a lot of complexity for the industry”.

Andy Rayner, CTO of Appear, observes that managing costs is an ongoing challenge for everyone in the current climate, “and for live content creators, this is no different”.

“There is an appetite to make even more compelling content and also to fully monetise the events to which broadcasters hold rights. This monetisation involves exploiting the acquired content in as many different ways as possible,” he says.

Rayner adds: “From a vendor perspective, broadcasters and content creators are continuing to invest in infrastructure but are more focused on ensuring it provides real value.”

He also notes that sustainability is also driving agendas in some territories, especially Europe.

“Whilst the sustainability agenda is often seen a burdensome cost to the industry, in many respects following an approach of minimising the use of energy and transport and giving longevity to infrastructure are things that provide cost savings,” he says.

New ways of working

According to Sung, among the most apparent shifts in the industry is the ever-evolving consumer demand for content which she says is significantly affecting the way Cinedeck, and other broadcasters and media providers, construct their workflows.

“The need for content to be efficient, fast and high-quality demands more automated workflows, particularly to support the growing need for remote production. This is not only great to see for cost-effective productions, but also represents a more environmentally sound approach,” she says.

Erik Otto, CEO at Mediaproxy, also notes that the industry continues to face challenges transitioning to streaming as the main revenue stream of the future.

“With the cloud not providing a panacea for everything, one of the opportunities presents itself through consolidation of tooling and changing of workflows. This includes a shift to software-driven approaches and technologies that straddle multiple disciplines. Maintaining the same quality of service whilst also reducing cost at the same time provides an opportunity to rethink traditional workflows for areas such as monitoring,” he says

Tom Dvorak, chief commercial officer at XroadMedia, comments that this year has been a period of rapid digital change, where media companies must adapt as well as maintain audience trust.

“One challenge that has risen, as cloud being the preferred method of software delivery, is a more fragmented environment as operators are using different cloud providers. If we were to insist on using a particular cloud vendor for our solution, this can contribute to higher costs and increased resources. Therefore, our solution is cloud-agnostic”, which he says helps customers reduce fragmentation by optimising their machines and ecosystem and become more sustainable.

“As well as increasing efficiency, we find this also helps with privacy questions, as this is a major concern for operators. Their customers’ data is in one place, helping them to be data protection compliant. At a time where more end-users are becoming conscious of how their data is used, this is welcomed by our customers, in addition to reducing costs and complexity,” Dvorak comments.

Oliver Lietz, CEO and founder of nanocosmos, says the real-time streaming industry has seen increasing demands over the past twelve months, primarily driven by rapid technological advancements and shifting media consumption habits.

“The need for scalable, secure, high-quality streaming has intensified, requiring even faster and more reliable video delivery,” he adds.

However, Brad Wall, CTO at LTN, asserts that despite the rapid evolution of the consumer media landscape over the past few years, “there remains a lack of urgency among content providers to integrate technologies that reach more audiences efficiently and at a global scale. Media, sports, entertainment, and OTT platform companies must look beyond satellite to IP video distribution and live event contribution for more flexible, future-ready technology,” he says.

Simon Clarke, CTO of Telestream, adds that moving to the cloud offers a more agile and flexible approach to content capture, production, and delivery, addressing the challenge of balancing current infrastructure with new technological advancements.

“Hybrid models have become essential, allowing broadcasters to maintain control amidst complexity. By adopting a hybrid strategy, media companies can achieve seamless content access, optimised storage costs, and robust disaster recovery protocols,” he says.

Jim Norton, chief revenue officer at Brightcove, also points to challenges with content localisation and personalisation.

“With an increasingly diverse global audience, there is a critical need to deliver content that not only resonates on a local level but maintains a universal appeal. In 2024, personalisation has evolved beyond basic recommendation systems”, with a focus on incorporating real-time data analytics and predictive modelling.

“By understanding the nuances of viewer behaviour, such as search patterns and watch times, we can curate a more relevant and engaging content library for each user, enhancing the likelihood of them coming back to our content,” he says.