Gartner Blog Network


Should media companies fear Amazon?

by Ted Chamberlin  |  November 13, 2017  |  1 Comment

tumblr_static_ef5ki0oiom8kk0scs4088ws0

I am not sure, but their is a potential that I could win the award for the most obvious blog post title………………..

Seriously, when I start to delve in the prospects of Amazon’s potential impact in the media and entertainment space, I have two divergent ideas:

  • Hell yes, they are a threat– Many of us in the IT space have been conditioned to react in fear when AWS develops a solution in a specific domain that is a tangent outside of compute. They have the development and engineering prowess like few in the world and can just think about technology different then most traditional companies. AWS also has the power of the entire services catalog that can enable encoding/rendering/analytics/AI/storage/networking&CDN/playout at scale.  They also have a secret weapon in the hybrid M&E workflow in AWS/Elemental.  Amazon Video has really begun to move into a higher profile with projected investments in original content to tune of $5Billion in 2018.  They have also toyed around with jumping into a add supported live video streaming services to keep up with Playstation Vue, Sling TV and Hulu live.  Amazon Primes deal to stream NFL games is genius; they will fix the lackluster experience. The totality of what Amazon and AWS has and can do to innovate in the media space is hugely disruptive.
  • Not an immediate threat- It’s never a good idea to underestimate a global giant, but being so large and technology focused can lead to a myopic view of the world. Yes, AWS has all the tools for a media company to develop and run their core streaming, content and compute applications, but they don’t have a comprehensive management framework.  Yes, AWS does have a managed service offering but its really a offering that trains organizations to operate like AWS; there is no taking on your mess for less.  I liken AWS to a large hardware chain like Home Depot or Lowes; they have a warehouse floor to ceiling of tools but they won’t operate them for you. You need to hire a contractor to operate the tools for your project.   The other disconnect I see in AWS is that they have yet to fully create synergies with between their CDN, DNS, Security platforms and the Elemental team.  AWS forces prospects to assemble support for their media and entertainment workflows themselves; an overlay SE or sales group would be a nice addition for those companies looking for a reference solution. To be fair, the Elemental team provides strong support for managing the entire workflow with support for both on-premise elements including encoders.

In weighing both sides, I see Amazon as being a clear and present danger to the established media establishment.  Amazon the supply chain in media and entertainment; they might not opt to build every link ( players, mobile devices,) but are keenly aware of how cord cutters and cord nevers will be choose OTT video over linear broadcast.  Here is a great graphic provided by my colleagues Monica Zlotogorski and Fernando Elizalde on how viewer habits are changing:

 

Frequency of content viewing

Category: 

Tags: amazon  aws  elemental  encoding  media  nfl  ott  

Ted Chamberlin
Research VP
18 years at Gartner
23 years IT Industry

Ted Chamberlin is a research Vice President at Gartner, where he is part of the Cloud and Communications group in TSP. His research focuses on the emerging cloud and hosting communications services like IaaS, PaaS, SaaS, colocation, application hosting, streaming and video content platforms, streaming and IoT and software-defined networking. Mr. Chamberlin has experience working with all size organizations from larger multinationals to early stage startups. Read Full Bio


Thoughts on Should media companies fear Amazon?


  1. Monica says:

    Thanks for the mention, Ted. Spot on. David Yockelson and I covered the myopic perspective in a recent piece “Waves of Disruption”.



Leave a Reply

Your email address will not be published. Required fields are marked *

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.