Technology innovations are transforming the media and entertainment (M&E) industry. With streaming now a fully mature business, the industry has experienced a major shift toward data-centric and cloud-based TV service delivery, observed the emergence of generative AI (Gen AI) for video workflows, and seen a rise in targeted TV advertising. As we embark on the new year, let’s explore how these emerging trends will shape the M&E industry in 2024.
#1: Improving Operational Efficiency With Generative AI and LLMs
Generative AI and large language models (LLMs) will be a major underlying theme in M&E this year. Language models are propelling AI into realms beyond our initial expectations, automating tasks like extensive dataset analysis and amplifying productivity for providers of video services. In 2024, we anticipate that Gen AI and LLMs will further disrupt the entire video supply chain, influencing content creation, distribution, security, personalization, recommendations, advertising, and analytics. Based on the value of LLMs, LLMOps are set to become a vital part of the M&E landscape over the next few years.
Gen AI will play a crucial role in personalized content suggestions, handling shopping queries, productizing content recommendations, facilitating interactive advertising, and addressing cybersecurity threats. Simultaneously, we expect to see a rise in deepfakes aided by Gen AI, posing additional challenges for content service providers. Successfully navigating these challenges will necessitate a combination of technological innovation and regulatory responses.
Looking ahead, it’s essential to bear in mind that AI tools are designed to empower humans, not replace them. While generative AI and LLMs will improve operational efficiencies for video service providers, humans continue to be indispensable.
#2: Unlocking Content Monetization With AI
To stay competitive, video service providers will need to find new, advanced ways to drive viewer engagement and increase monetization. Providing an exceptional quality of experience and personalized content will be a chief focus area for service providers in 2024 as they look to grow their revenue streams. AI will prove to be beneficial for improving revenue and workflow efficiency for video service providers.
Delivering targeted advertising is an outstanding way to monetize television services. In 2022, targeted ads generated $139 billion globally in traditional TV ad revenue. By harnessing AI/ML-powered targeted TV advertising solutions, broadcasters and service providers can precisely categorize audiences according to their viewing interests, household composition, life moment events, demographics, and other relevant factors to boost engagement.
FAST channels are another avenue for service providers to improve monetization. According to Digital TV Research, FAST revenues for TV series and movies predicted to reach $17 billion in 2029.
In 2024, we’ll see video service providers proposing curated FAST offerings that align with audience preferences. Generative AI technologies will be central to helping service providers optimize content discovery and the creation of FAST channels. As with targeted advertising, through AI-driven recommendations, service providers will have the option to adapt FAST channels to audience interests, enhancing viewer engagement and satisfaction.
Furthermore, global search, aggregation, and super aggregation will be increasingly important features for video services in 2024. In today’s TV environment, there are endless viewing options. Video service providers can prevent subscriber churn and enhance viewer satisfaction by tailoring content recommendations to users’ preferences. This year, critical metrics for global search, aggregation, and super aggregation will include performance, availability, and the ability to scale.
Additionally, interactive shopping will find its place on the TV, blurring the boundary between content consumption and e-commerce. Advertising experiences on the TV will evolve from being passive to interactive, with viewers directly purchasing products showcased in commercials or within the content they watch, through the user interface on the TV or on a secondary screen such a smartphone or tablet by scanning a QR code. TV service providers have a critical role to play in this process in terms of streamlining transactions. Advanced LLM algorithms, like ChatGPT, will fuel personalized content suggestions, assist with shopping queries, and more.
#3: Evolution of the Cloud
The use of cloud-native technologies has become ubiquitous in the video industry. In 2024, cloud technology will continue to evolve. We’ll see a growing number of multicloud and hybrid cloud deployments as video service providers embrace the cloud and its wide-ranging benefits.
The advancement of cloud-native operational and business models highlights specific requirements for platform scalability, operational models such as SaaS and managed services, FinOps, and DevOps/DevSecOps toolchains. These developments are poised to significantly enhance the profitability and agility of TV businesses over time. Similar to other software and cloud-enabled supply chains, there will be a growing need to reinforce “business sovereignty,” emphasizing a company's ability to maintain control, operational efficiency, and intellectual property protection throughout the entire chain.
#4: A Rise in Cybersecurity Threats and Deepfakes
Cybersecurity threats are on the rise, particularly CDN leeching. This type of piracy enables one to use an operator’s streaming infrastructure to serve their own customers.
To tackle CDN leeching, operators need to be able to measure the extent of the leeching within their CDN, tracking how much bandwidth is consumed by pirates, and enforcing protection of the CDN. As a result, in 2024, operators will need to adopt innovative anti-piracy solutions that leverage AI and machine learning to detect abnormal behavioral patterns. Performing ongoing analysis will be critical to thwarting CDN leeching and helping operators protect their precious revenues.
Aside from cybersecurity threats, the M&E industry will also need to consider the potential harm of deepfakes, and the impact that pirates — armed with GenAI-enabled automatic video content generation tools — could have on a studio’s business. With this threat expected to rise over the next year, media professionals must develop and adopt effective mitigation techniques, such as watermarking.
#5: Increased Focus on Sustainability Initiatives
The media and entertainment industry will see a heightened focus on sustainability in 2024. While this subject has been a major talking point in recent times, we expect companies to go beyond mere discussion and start implementing sustainability initiatives more seriously. Global operators are aiming for carbon footprint neutrality, and their commitments are increasingly influencing the entire supply chain (GHG Protocol Scope 3), with regulation expected soon.
Conclusion
The M&E industry is undergoing significant transformations that will impact the future of television. Key trends to watch include the pervasive influence of generative AI (Gen AI) and large language models (LLMs) throughout the video supply chain, the growing prevalence of multicloud and hybrid cloud deployments by video service providers, rising cybersecurity threats and the use of deepfakes, new content monetization techniques, and a growing emphasis on sustainability. As video service providers navigate these trends, AI- and ML-driven technology innovations will empower them to amplify productivity, improve viewer engagement, boost monetization, and protect their content.
Dror Mangel is Vice President of TV Products and Solutions at Viaccess-Orca. An expert in data-driven solutions, Dror has extensive experience guiding products from ideation to market launch. He holds a bachelor’s degree in industrial engineering from Technion - Israel Institute of Technology and an MBA from Tel Aviv University.
