The evolution of streaming with an eye on the cloud and data

The move from television to streaming has radically changed the media landscape with markets and business models evolving faster than ever.

Sometimes it's hard to notice that something has changed when it's right in front of you. The way we watch television is a good example. We have gone from having to adapt to the programming that was broadcast at all times, to choosing what we want to watch, and when, through the streaming.

Although this change has been happening for a while, it really took off during the lockdown. The home confinement that we were forced into last year motivated many users to subscribe to online entertainment platforms to spend the days watching series and movies on their television or any other device. In fact, according to a report by IPG Mediabrands, the consumption of audiovisual content grew by 115% in Spain in the months of April and May 2020.

So much so, that last April, coinciding with the strictest confinement, the streaming platforms were already present in 7,251,000 Spanish homes (38.7%) with an average audience of 16,395,000 viewers, according to the report carried out by the consulting firm Windward Communication.

Let's take as an example Disney+. The over-the-top (OTT) service arrived in Spain shortly after confinement began, at the end of March 2020, after initially launching in the United States in November 2019. At the end of 2020, The Walt Disney Company announced that they had 86.8 million subscribers to Disney+ worldwide. We are proud to have Disney as one of our clients. Amazon Web Services.

Streaming needs the cloud and data

Although this growth has been great news for streaming services, it has also raised two important challenges. First of all, the need to have a sufficiently agile infrastructure to instantly scale and power cope with huge fluctuations in demand. And secondly, the need to improve the experience of viewers and find easier ways for them to discover the content they like.

At AWS we are helping streaming services solve both challenges. A demand-driven content processing and delivery platform must be supported by an agile cloud-based infrastructure. But the answer to both challenges – running a dynamic video infrastructure and improving recommendations and personalization for viewers – is the effective use of data.

Without a proper analysis of video delivery, neither performance nor the viewer experience can be improved. And without equally effective analysis of what viewers are watching and enjoying, you can't make the recommendations you need to get the most out of your service, or even know which productions to invest the most in. Don't underestimate what has changed for content companies. With traditional television, getting hold of accurate data was a challenge, let alone using it to make decisions in real time.

The AWS cloud helps businesses turn data into understanding and action. For streaming services this means better performance and coping with increasing spikes and dips in demand. And also provide an enhanced viewer experience that goes beyond personalized recommendations, for example by adjusting recommendations based on viewer activity or providing personalized real-time statistics for a live-streamed event.

At the bottom of the network

Sports is a great example. Let's take as a model Dazn, which offers millions of hours of action to its viewers, from the Bundesliga to Formula 1.

Dazn is data-driven. The main purpose of that data is to ensure that Dazn video streaming runs smoothly, no easy task. You need to estimate the level of interest just before a big game to proactively manage the thousands of new registrations that occur just before kickoff. AWS provides you with the agility needed to climb and be able to satisfy that demand, paying only for that demand and de-escalating again 90 minutes later.

Additionally, it also uses AWS to provide in-game statistics and analytics to enrich the viewer experience, providing deeper insight and context for fans in real time.

Another very interesting case is Atresmedia, which, thanks to AWS cloud services, achieved multiply the unique user base by 25 of its digital platform until reaching 5 million, compared to the limit of 200,000 users they had with their old infrastructure.

At AWS we have the tools necessary to process all the data and quickly convert it into information for business, and to improve the experience of customers and viewers. For example, Formula 1 uses Amazon SageMaker to create machine learning models that help fans better understand the split-second decisions made by a driver or pit crew, which can dramatically affect the outcome. In addition, we have specific services for media that address the entire content chain, from creation to consumption.

The move from television to streaming has radically changed the media landscape. Organizations of all types face similar challenges as their markets and business models evolve faster than ever. It seems that the only current certainty is uncertainty. Navigating that uncertainty requires the ability to turn data into decisions and the agility to quickly turn decisions into actions.

Carlos Carus

Technology Manager AWS in Spain and Portugal

Other articles on Amazon, AWS, Dazn, Disney