Cloud computing is the way through which some companies delivers hosted service over the internet. Cloud computing help companies to avoid computing infrastructure development for their business and get the service from third party vendor. It saves the companies additional cost, taxes and other complications.
Cloud computing is extensively being used in the entertainment industry. Media companies are facing fierce competition and their business model is evolving with time. Customers are demanding more entertainment and are showing less loyalty to one channel. Previously, there were only few channels that provided limited entertainment to people. Now the things have changed and there is a huge amount of content available to consumers through TV and social media.
The entertainment industry has also become global. TV show that becomes popular in one country has a high probability to do business around the whole world. To give an example, Game of Thrones had 23 million viewers on average per episode. The viewership of this drama was global and it was not possible for the drama commercial team to ensure its delivery across all countries on TV. Hence, they took Netflix as the main mode of transmission and generated huge revenues through it.
Digital supply chain has become very crucial for media executives. Now entertainment websites are also providing large revenues to the companies. YouTube is a great source of revenue for many channels. It increases the exposure to the targeted audience in an economical way. Moreover, it decreases the marketing cost of the media teams. It also helps to target right customers.
Cloud computing has also improved access to entertainment. The entertainment data can remain on internet forever and it keeps on generating revenue for many years. Data analytics helps the media executives to identify new opportunities. Let’s take example of a famous show Prison Break. It started back in 2005 and ended after 4th season in 2012. Fox confirmed that there will be no further season of Prison Break. However, its viewership on Netflix increased to massive level. The viewership was coming from new audience, as well as repeat watchers. Hence, this massive response on Netflix encouraged Fox TV to think about bringing a new season. Such opportunity was created only due to cloud computing technology which helped in reviving revenue and viewership.
Efficient use of cloud computing by media executive is very important. Some of the basic strategies that entertainment industry can adopt are the following:
- Transfer all their digital archives to cloud computing network, which is the most popular i.e. YouTube, Netflix, Daily motion etc. This step can be done for free in order to attain maximum viewership.
- Use analytics from the site in order to devise strategy for future work. Analytics can help to take decision about making new shows/program, release dates, pricing etc.
- Develop an effective pay per view model
- Use feedback from the viewers for development of future content.
Cloud computing is making the entertainment industry more efficient. It helps in smooth transfer of data to broadcast partners. TNA wrestling recently shifted all their data to drop box and they found it more efficient and cost effective due to unlimited storage capacity. In result of this step, the collaboration has significantly improved with broadcasters and the IT team has become more efficient due to cloud computing processes.