Broadcast Beat Magazine 2018 NAB Show Edition - Page 54

Consumers Demand Convenience; Can Storage Help? By Adrian Herrera, VP Marketing, Caringo T he Broadcast landscape is changing and the rate of change is accelerating. We are in the midst of a transforma- tional shift in the flow of information. Creating and delivering video once took a mas- sive amount of capital, access to expensive infra- structure and equipment, and connections at the few networks that controlled what was shown. Now, the combination of broadband, HD cameras and social networks has given everyone the abil- ity to both push content to millions of viewers and pull content from a library of millions of vid- eos. In this new world, content is still important, but even more important is convenience. Simply stated, the consumers must be able to find and view content on their own terms. Easy, right? Well…not really, because, you—as a broadcaster—need to be able to support or enable these evolving services while (hopefully) expand- ing viewers and revenue— while sustaining the same level of services at scale (i.e., as file sizes, content libraries and subscribers grow). Unbeknownst to many, there is a simple solu- tion that can enable success with this challenge: object storage. You need to look no further than the rise of “Cord Cutting” and “Cord Shaving” driven by OTT Multi-channel Video Programming Distributors (MVPD) and Direct to Consumer (D2C) Streaming 54 • Broadcast Beat Magazine • Services to see consumer demand shift from a push to a pull model. In Q4 of 2017, Netflix acquired 8.3 million new subscribers (1.98 million in the US and 6.36 million internationally), bringing their total subscriber count to around 118 million. As a result, they have plans to increase marketing spend to $2 billion, a 50% increase from 2018. On their 4th quarter call, CBS CEO Les Moonves said CBS is extending their D2C offerings with CBS Sports HQ and Entertainment Tonight citing online lead- ing to a “much better demographic” than tradi- tional broadcast. Disney recently announced they are removing their content from Netflix, acquired 21st Century Fox in large part for their share in Hulu, and just launched ESPN Plus stream- ing. Amazon Prime Video currently has 40 million subscribers esti- mated to grow to 126 mil- lion by 2020; however, 70% of households with a combined income of over $150,000 are Amazon Prime mem- bers. I think you get the point: Viewers are shifting to an on- demand world and the resulting advertising dollars and demographic information is also shifting. From an infrastructure perspective, there are many things to consider when developing these services and you need to now look at them