Media companies shift from fixed infrastructure to cloud-based, dynamic supply chains

Media organizations are transitioning away from fixed on-premises infrastructure toward elastic cloud-based systems as they seek to align processing costs with actual workload demands and eliminate the expense of underutilized resources.

Traditional media workflows have relied on fixed infrastructure investments that require organizations to provision capacity for peak demand periods, leaving resources idle during baseline operations.

This approach creates what industry executives describe as inherent inefficiencies in resource allocation and cost management.

“Fixed infrastructure costs, by definition, include over-provisioned resources that sit idle almost all the time,” said Geoff Stedman, CMO at SDVI. “Fixed infrastructure costs for on-premises infrastructure mean that processing capacity is fixed at some level, which, for most organizations exceeds the average utilization level, resulting in underutilized assets.”

The shift toward cloud infrastructure addresses this inefficiency by providing elastic scaling capabilities that allow media supply chains to adjust capacity based on real-time demand. Organizations can provision additional processing resources during high-volume periods and reduce capacity when workloads return to baseline levels.

“The key to meeting bursts in demand is leveraging cloud infrastructure for media operations,” Stedman said. “Cloud infrastructure is by definition almost infinitely scalable and always available, which makes it a good fit for operations where demand is not always predictable.”

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Hybrid deployment models gain traction

While pure cloud migration represents one approach, vendors note that hybrid architectures are becoming the standard as organizations balance operational control with scaling flexibility.

“Scalable media supply chains require flexible deployment options and modular architecture,” said Eric Chang, marketing content architect at Telestream. “Hybrid is emerging as the go-to model for organizations that need both operational control and the flexibility to scale, combining the security and performance of on-prem environments with the advantages of dynamic, cloud-based workflows.”

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Organizations using hybrid approaches maintain certain functions on-premises while leveraging cloud resources for variable workloads. This model allows companies to retain control over sensitive operations while accessing elastic capacity for processing spikes.

“Organizations can leverage cloud infrastructure for its flexibility and scalability,” said Aaron Kroger, director of product marketing and communications at Dalet. “Using elastic resources allows systems to automatically adjust capacity based on real-time needs. A hybrid distributed architecture can also help balance performance with cost efficiency and predictability.”

Migration strategies and implementation

Companies implementing cloud migration are adopting phased approaches to minimize disruption and validate performance before full deployment. The transition process typically begins with less critical functions before expanding to core operations.

“By starting with less intensive efforts like migrating disaster recovery storage, then gradually moving into content ingest, processing, and distribution, organizations can test performance, validate reliability, and minimize disruption at each step,” said Chris McCarthy, VP of media solutions at TMT Insights.

The migration process also requires internal preparation to address operational changes and team training requirements. Organizations report that change management and staff education are essential components of successful transitions.

Cloud-based architectures have demonstrated their scaling capabilities during high-demand events.

Streaming platform Tubi utilized its cloud-based infrastructure built with Kubernetes on Amazon Web Services to support 15.5 million concurrent viewers during the Super Bowl, with total viewership reaching more than 24 million unique viewers across game day programming.

“Cloud-based services provide the flexibility required to provision resources up and down to accommodate media supply chain peaks,” said Ian McPherson, global media and entertainment business development manager for media supply chain and generative AI at Amazon Web Services.

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Cost model transformation

The transition from fixed to dynamic pricing models represents a fundamental shift in how media organizations budget for processing resources. Cloud-based systems operate on consumption-based models that align costs with actual usage rather than projected peak capacity.

“A dynamic, demand-based pricing model ensures that users of content processing infrastructure pay only for what they use, both at the application layer and at the infrastructure layer,” Stedman said.

“Organizations implementing these models report measurable results, with some companies documenting 50% reductions in content curation effort and 60% workflow efficiency improvements when eliminating duplicate systems and manual handoffs across platforms,” said Ivan Verbesselt, chief strategy and marketing officer, Mediagenix.

Organizations are implementing monitoring and analytics systems to optimize resource allocation and determine appropriate scaling thresholds. These systems provide data on utilization patterns that inform decisions about resource provisioning and cost management.

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“Analytics and monitoring are essential to determine the optimal model and resource allocation,” Kroger said.

The shift toward elastic cloud infrastructure addresses longstanding inefficiencies in media supply chain operations while providing organizations with the flexibility to respond to variable demand patterns without maintaining excess capacity during baseline operations.