Cloud adoption in media and streaming

The broadcast and streaming industry has always been shaped by technological shifts, but few have been as crucial (or certainly not as widely debated!) as the move to the cloud. What began as a gradual exploration of virtualised infrastructure has, over the past decade, evolved into a fundamental rethinking of how media businesses operate. Yet despite the near-ubiquity of cloud conversations at industry events, today’s reality is far from a simple, cloud-first narrative. On the other hand, what has emerged is a more complex, and arguably more interesting, picture.

A large portion of this shift is thanks to the rise of global, direct-to-consumer streaming platforms such as Netflix, Disney+ and Amazon Prime Video. These services didn’t just disrupt viewing habits; they completely changed the operational requirements of the entire industry. Suddenly, content needed to be delivered instantly to millions of users across multiple regions, devices and bandwidth conditions. Traditional broadcast infrastructure, designed for stability and predictability, struggled to match that level of elasticity. Cloud infrastructure, by contrast, was purpose-built for it.

As Stan Moote, CTO of IABM, succinctly explains: “Cloud adoption in media and streaming has accelerated due to a mix of scale, flexibility and competitive pressure. Covid had some major effects on cloud adoption outside of playout. So I like to cover playout first, then look at other aspects.”

Playout in practice

For many broadcasters, playout represented the first meaningful step into the cloud – not because it was easy, but because it delivered immediate and tangible benefits. Cloud-based playout made it possible to launch channels quickly, localise feeds for different markets and experiment with new business models, like FAST channels, without the burden of physical infrastructure. It also aligned neatly with the shift towards on-demand viewing, where the distinction between linear and non-linear delivery continues to blur.

Moote expands on this dynamic, noting that “the main driver is that the growth of direct-to-consumer platforms, such as Netflix, Disney+, Amazon Prime Video etc, required the ability to scale instantly to serve audiences globally. Cloud infrastructure makes this possible. Outside sports and more niche venues, viewers also want to view on-demand, and so we are seeing traditional broadcasters taking advantage of abundant cloud payout services.”

What’s particularly striking here is the cloud’s growing importance to established broadcasters, as well as new entrants. Organisations that once relied entirely on satellite or terrestrial distribution are embracing cloud workflows to remain competitive in a market that increasingly rewards speed and global reach.

If the rise of streaming platforms set the stage, the Covid-19 pandemic accelerated the plot dramatically. Almost overnight, production teams were forced to operate remotely, post-production workflows had to be decentralised and collaboration tools became essential. Even workflows that had previously been considered too sensitive or complex for cloud migration were rapidly adapted, often under less-than-ideal conditions.

Moote reflects on this: “Covid-19 triggered the rapid acceptance of using cloud services beyond playout despite the fact that the difference in quality was, more often than not, marginal. Covid audiences accepted this. It was quickly realised that operational flexibility was possible with cloud services as they support remote and distributed production workflows, while shifting costs from capex to opex, helping companies manage demand more efficiently.”

This period marked a turning point where the long-standing assumption that cloud workflows could not meet broadcast-grade standards was challenged, not through careful testing, but through necessity. The results were sometimes imperfect but proved the model was viable.

Cutting costs or cutting corners?

As the Covid-shaped dust was settling, a more sober assessment began to take shape. The early narrative that cloud software was inherently cheaper than on-premises infrastructure has been increasingly called into question. While the ability to avoid large upfront capital expenditure remains attractive, the operational costs of running high-volume workloads in the cloud – particularly storage, transcoding and long-term archiving – can quickly add up.

“Although a clear win with lower upfront investment,” Moote continues, “faster time to market and the flexibility to scale with demand – especially for fast-growing platforms – the industry narrative on capex to opex has evolved. At scale, cloud costs can become significant and less predictable, particularly for high-volume workloads such as storage, transcoding and long-term content libraries. In some cases, running steady-state workloads in the cloud can be more expensive than optimised on-premises infrastructure or hybrid models.”

This change in mindset has given rise to a more nuanced approach: hybrid workflows. Rather than choosing between cloud and on-premises infrastructure, many organisations are combining the two, keeping predictable, steady-state workloads in-house while leveraging the cloud for burst capacity and experimentation.

“As a result, the conversation has shifted from ‘the cloud is cheaper’ to ‘the cloud is more flexible’. Companies are becoming more deliberate, keeping bursty, variable workloads by employing cloud services. Flexibility and scalability, along with the need for efficiency, are driving rapid cloud adoption,” Moote explains. “Regional differences remain: while western Europe is prioritising flexibility and scalability, North America is more strongly driven by efficiency requirements.”

These regional dynamics are part of a broader trend around fragmentation in cloud strategy. There is, simply put, no single, industry-wide approach to cloud adoption.

“We are seeing conflicting information on cloud adoption that again depends on region, company size and internal mandates,” Moote expands. “For example, those who haven’t yet adopted cloud storage and edge computing are most concerned with cost. A double-edged sword (in or out of cloud) is the increased focus on cybersecurity.”

Security, once seen as a specific barrier to cloud adoption, has become a universal concern, regardless of where workloads are hosted. As media companies handle increasingly valuable and sensitive data, the need for robust cybersecurity measures has intensified, adding another layer of complexity to cloud decision-making.

Moote highlights another crucial consideration: “As my industry focus has been interoperability and redundancy, I see that about half of end users prefer to deploy cloud solutions using multiple public cloud providers. Interoperability between providers is constantly a key concern.” The promise of flexibility cloud infrastructure offers can be quickly undermined if systems cannot communicate effectively, making standardisation and open architectures more important than ever.

Setting the standard

This is where organisations such as the IABM play a crucial role. As the international trade association for suppliers of broadcast and media technology, IABM’s work spans market intelligence, training and the development of best practices. The core goal is to help companies navigate an increasingly complex technological landscape. With members ranging from start-ups to global technology providers, IABM provides a platform for sharing insights and addressing common challenges.

Stan Moote’s own career reflects the breadth of experience informing this work. Having started in television engineering in the late seventies and then gone on to co-found companies, contribute to key standards such as CCIR-601 and hold senior leadership roles at major technology firms, Moote brings both technical depth and commercial insight to the conversation. His long-standing involvement with organisations such as SMPTE and his role in driving interoperability initiatives give him a unique perspective on how the industry evolves – and where it needs to focus its efforts.

One of the most pressing areas of focus for the IABM and its members today is the shift towards cloud-native architectures and the opportunities they create for data-driven workflows and AI-powered innovation. The ability to analyse viewer behaviour, optimise content delivery and automate processes is completely reinventing how media companies operate.

However, as Moote points out, this comes with its own set of challenges: “Another aspect which is highly controversial at the moment is that the need to leverage data, AI and faster innovation cycles is pushing companies towards cloud-native models, which again has cybersecurity concerns.” It’s apparent that the tension between innovation and risk is a recurring theme in the cloud conversation – and requires careful navigation.

Equally complex is the issue of software licensing. Traditional licensing models, designed for hardware-based environments, are often ill-suited to the dynamic, on-demand nature of cloud workflows. This has created disharmony amongst vendors and end users, prompting industry-wide efforts to develop more flexible approaches. Moote adds that “the rapid shift to cloud and hybrid workflows has exposed a critical friction point: traditional software licensing models were built for hardware, not for dynamic, software-defined environments.” Addressing this challenge is a key priority for IABM, which is working with industry stakeholders to define the best practices that support modern workflows.

Alongside licensing, control and monitoring have become increasingly complex as operations span both local and cloud environments. Ensuring visibility and security across these distributed systems is no small task, and one that requires new standards and approaches. Initiatives such as the development of the new SMPTE ST 2138 standard aim to provide a framework for managing these challenges, making sure cloud and on-premises systems can operate seamlessly together.

Thinking ahead, it’s clear that cloud will continue to play a central role in the future of the broadcast and streaming industry – but not in the all-encompassing way that was once predicted. Instead, its role is becoming more targeted and strategic, focused on areas where its strengths can deliver the greatest impact.

As Moote puts it: “Cloud will play a key role in making streaming operations more flexible, but in a more targeted way than before. Yes, cloud services will continue to be relied upon for high-demand, variable workloads such as live events and peak traffic, where scalability is critical.”

Perhaps most importantly, cloud is enabling another level of experimentation within the industry. The ability to launch channels, test formats and enter markets without significant upfront investment is lowering the barrier to innovation. As Moote concludes: “It will also enable more modular, on-demand workflows, allowing companies to quickly launch new channels, regions or services without fixed infrastructure. This is key for niche channels and companies that want to experiment with brand-new business models.”

This article appeared in our NAB 2026 issue