A new era for media and entertainment companies

A new era for media and entertainment companies Cloud computing changes the game

2 Copyright © 2015 Accenture All rights reserved.

A new era for media and entertainment companies Cloud computing changes the game

• Challenges facing media and entertainment industry

• Cloud solutions gain momentum

• Cloud enables broadcasters to change the game – four benefits

• Next steps into the cloud


Technology and changing consumer behavior are transforming the delivery of video content. A shift

to digital distribution is triggering three major disruptions for broadcasters:

Consumer demand for more choice in video consumption:

Providing a range of options, including on-demand and interactive viewing,

requires more computing power and resources than traditional broadcasting.

Meeting the requirements of multiple devices and channels requires

more flexible business models and systems to engage an

increasingly fragmented audience.

Challenges in today’s media and entertainment industry Broadcasters need to change their technology culture and mindset


Challenges in today’s media and entertainment industry Broadcasters need to change their technology culture and mindset

Time pressures in bringing new offerings to market:

New over-the-top (OTT) providers are entering and disrupting the video distribution marketplace. To keep pace,

broadcasters need to accelerate their solution development and take them to the market faster.

Cost pressures on technology sourcing and operations:

Rising prices for content rights, intensifying competition and over-dependence on legacy technologies are

driving broadcasters to align costs with usage and revenues.

Broadcasters need to give their technology operations a software

orientation, with a mindset focused on software engineering and

architecture as a way to develop new solutions and capabilities.


Cloud solutions gain momentum Key trends

Cloud spending is increasing--more than a third of media and entertainment industry respondents in

a survey1 plan to purchase cloud solutions.

Most cloud initiatives by broadcasters involve private cloud solutions. However, ongoing

improvements in cloud security mean a shift towards hybrid models, involving both public and

private clouds.

As cloud use increases, companies trend toward greater use of

transcoding in the cloud, repurposing content for different devices.

A driver of cloud adoption in broadcasting: The latest generation of

industry software platforms such as Accenture Video Solutions (AVS)2

can leverage cloud seamlessly as part of the overall solution.


Cloud enables broadcasters to change the game Potential benefits

Cloud solutions enable broadcasters to stay abreast of industry developments and compete with

OTT providers by helping them to realize four potential benefits

1

Faster speed to market closes the gap on the faster service delivery cycle of the

OTT entrants

To take on the challenge from cloud-enabled competitors, broadcasters need to roll

out new services in weeks or months rather than years.

Cloud-enabled offerings such as the Accenture Video Solution

(AVS) can help broadcasters achieve this faster service

delivery cycle.



Provides scalability to handle spikes in workload, including live events,

and surges in the popularity of new services

Today’s environment of unpredictable and volatile demand for video experiences

plays directly to the pay-per-use pricing of cloud solutions, together with the ability

to dial them up and down in line with need.

Leveraging cloud computing video providers can seamlessly support an online

audience which surges from a few to millions within minutes.

Cloud enables a shift to usage-based operating expenditure (opex), while also

reducing the risks of constrained capacity that can result when a service’s

popularity exceeds expectations.

Cloud computing can have a transformational effect on the type and reach of

popular events such as sports events being covered – effectively ‘democratizing’

the market beyond top-level professional sport.

2



The ability to collect, store and conduct analytics on vast amounts of data, generating

insights to drive personalization, service development, customer experience and

one-to-one relationships

Data analytics and mining can be used to test out hypotheses and refine the customer experience

down to the individual level.

Consumers’ concerns over privacy can be allayed by applying opt-in consent processes and

using data with the personally identifiable components stripped out.

3



Driving ongoing service innovation through agile development, constant iterative

experimentation and a culture of “fail fast and fail cheap – then move on”

Cloud computing helps broadcasters to pilot and experiment with different types of services

to test their potential to engage consumers and drive revenues, without putting significant

investment at risk.

Through the one-to-one customer relationships facilitated by the cloud, broadcasters can

also involve their audiences in product development and innovation through ongoing

feedback and input.

4


Future of the cloud Next steps

The use of cloud solutions will progress on several fronts in the coming years as they

become ever more prevalent in video delivery operating models.

1) Consumer cloud solutions will continue to advance.

A report from Juniper Research forecasts that over 3.6 billion people worldwide – half the global

population – will be accessing cloud-based consumer services by 2018, up by 50 per cent from

2013.3

2) Cloud will be increasingly used to underpin video content delivery, including

catch-up services.

Broadcasters can use cloud solutions to power offerings such as catch-up services,

with metadata relayed directly from the cloud when a consumer clicks on a

particular date or piece of content.



3) Cloud will complete the positive business case for “digital end-to-end”

tapeless workflow from production to delivery.

The fully digital workflow can be realized by leveraging the cloud’s cost and scalability benefits and advances such

as cloud-based transcoding —repurposing content for different devices.

Accenture has helped Warner Bros. Entertainment build a completely digital supply chain termed “digital end-to-

end (DETE).”

4) Video distribution may cease to be an industry in its own right and become a function

across industries.

With cloud solutions continuing to lower the barriers to entry, the stage is set for stronger brands, ranging from

retailers to consumer goods, to move into video distribution.

Red Bull TV54 is an early manifestation of this trend.



5) Access to video coverage of live events will become ever more

democratized, global and social.

As opportunities for cost-effective streaming of events at different levels of

quality, latency and reach continue to grow, rights holders will increasingly

select and blend different types of cloud solution to achieve the appropriate

balance for their content and audience at low risk.

Providers will increasingly mine social media streams in the cloud to integrate

with their live coverage, harvesting event information, statistics and social

messages that they can then pair and match with the video feed.


Cloud computing for media and entertainment A critical enabler for transformation

Cloud computing is now ushering new entrants to the industry, and is helping broadcasters to

keep pace with the disruptive and game-changing advances taking place all around them.

Without the cloud, it would be extremely difficult to achieve the blend of low costs, high

scalability, constant experimentation and speed-to-market required to compete in the digitally

disrupted world.

Put simply, video content is the future of media and entertainment – and the cloud is the future of

video. It’s time to embrace it.

References

14

1) Devoncroft, “Largest Ever Study of Broadcast Market Reveals Most Important

Industry http://blog.devoncroft.com/2013/06/18/largest-ever-study-of-

broadcast-market-reveals-most-important-industry-trends-for-2013/

2) Accenture website, “Accenture Video Solution: Video Services Over

AnyNetwork, Anywhere, Anytime”, 2013. Accessed on 03 June 2014 at

http://www.accenture.co.uk/Microsites/software/accenture-video-

solution/Documents/pdfs/Accenture-Video-Solution-Overview.pdf

3) FierceCIO.com, “Half of world’s population headed for the cloud”,19 May

2014. Accessed 21 May 2014 at http://www.fiercecio.com/story/half-worlds-

population-headed-cloud/2014-05-19

4) RedBull.TV website, accessed 03 June 2014 at

http://www.redbull.tv/Redbulltv

Copyright © 2015 Accenture All rights reserved.

14

http://blog.devoncroft.com/2013/06/18/largest-ever-study-of-broadcast-market-reveals-most-important-industry-trends-for-2013/

























http://www.accenture.co.uk/Microsites/software/accenture-video-solution/Documents/pdfs/Accenture-Video-Solution-Overview.pdf











http://www.fiercecio.com/story/half-worlds-population-headed-cloud/2014-05-19













http://www.redbull.tv/Redbulltv

Accenture at a glance

16

• More than 293,000 people serving clients in more than 120 countries

(Aug. 31, 2013)

• We deliver services and solutions through 17 focused industry groups in

five operating groups.

• A network of more than 50 delivery centers around the world with over

122,000 resources

• NYSE (ACN), Revenue US $28.6 billion for fiscal year ended Aug 31,

2013

• Accenture was added to the S&P 100 in March 2012

• Ranked No. 1 in the International Association of Outsourcing

Professionals' (IAOP) list of the world's top outsourcing service providers

for the fifth year in a row.

• $800+ million in training annually

• $500+ million on R&D

• 99 of our top 100 clients have been clients for 5 years;

92 have been clients for at least 10 years

• Clients include 92 of the Fortune Global 100 and

three-quarters of the Fortune Global 500

Summary Investments

Enduring relationships

Thought Leadership Journey to the cloud

17

How Cloud

Computing Changes

the Game in Media

and Entertainment

The Future of

Broadcasting, Issue

IV: A New Era of

Optimism

Pulse of Media:

Mastering Disruption

in the Digital World

The Four Keys to

Digital Trust: Don’t Be

Left Behind

All the Right

Connections: A New

World of Opportunity

for Broadcasters with

Digital TV, Connected

Screens and High-

Speed Broadband

http://www.accenture.com/us-en/Pages/insight-cloud-computing-broadcast-media-entertainment.aspx




http://www.accenture.com/us-en/Pages/insight-future-broadcasting-new-era-optimism.aspx




http://www.accenture.com/us-en/Pages/insight-pulse-media-digital-trends-media-entertainment.aspx



http://www.accenture.com/us-en/Pages/insight-accenture-four-keys-digital-trust.aspx



http://www.accenture.com/us-en/Pages/insight-right-connections-new-world-opportunity-broadcasters-digital.aspx













Services and thought Leadership Accenture cloud

18

Using an IT resource no longer depends on having the capital to

own that resource, thanks to cloud computing.

As competitive dynamics shift, Accenture can help your

organization to map its path to the cloud.

www.accenture.com/cloud

http://www.accenture.com/cloud

Copyright © 2015 Accenture All rights reserved. 19

From Digitally Disrupted to Digital Disrupter Accenture Technology Vision 2014

Digital-

Physical

Blur

Architecting

Resilience

From Workforce

to Crowdsource

Data Supply

Chain

Harnessing

Hyperscale

Business of

Applications

• Video

• Exec Summary

• Trends Summaries

• Full report


Cloud computing can

enable this digital

transformation

www.accenture.com/technologyvision

http://www.accenture.com/technologyvision

A new era for media and entertainment companies

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