The broadcast industry's much-touted move to cloud infrastructure is facing a more complex reality than initially predicted. Broadcasters are grappling with ongoing costs, security issues, and integration challenges, leading many to opt for hybrid solutions instead of complete cloud migrations. “Cloud storage is a stubbornly expensive proposition, especially as camera technology evolves and file sizes keep growing, and much of the world still wants the security of on-premise solutions that have already been bought and paid for,” noted Thorsten Sauer, CEO of Pixel Power.
Financial considerations remain central to cloud adoption decisions. With potentially tighter budgets in 2025, broadcasters are carefully evaluating the true cost of ownership (TCO). “With tight budgets likely to be the biggest challenge to adopting new technologies in 2025, broadcasters will navigate the challenge by doing the math to determine whether it’s more cost-effective to run their operations on-prem or in the cloud,” explained Steve Reynolds, CEO of Imagine Communications. He added, “If you’re deploying a disaster recovery solution or operating FAST channels that are never going to touch an antenna, it’s probably cheaper to do it in the cloud, but if you’re running 24/7/365 workflows or have significant investments in studios, HVAC systems and backup generators, on-prem solutions may make better economic sense.”
Legacy infrastructure presents significant integration hurdles. “Broadcasters face significant challenges in adopting new technologies due to their reliance on outdated infrastructure and legacy systems, which complicate integration with modern cloud-based workflows and AI-driven tools,” said Dan Goman, CEO of Ateliere Creative Technologies. He highlighted the substantial costs associated with technology updates, staff training, and hardware upgrades.
Security concerns are also paramount. Andy Rayner, CTO of Appear, pointed out that broadcasters “face challenges around integrating new technologies with legacy systems, ensuring interoperability, and maintaining robust cybersecurity in increasingly IP-based workflows.”
The industry is increasingly adopting hybrid approaches, combining the flexibility of the cloud with the security and cost advantages of on-premise infrastructure. “Commercial models from technology suppliers should align with the need to operate across different infrastructures,” stated Neil Maycock, CCO of Pebble. He further explained that CapEx may suit some, while OpEx better aligns costs with revenues for operations requiring flexible broadcast patterns.
This hybrid model seems particularly well-suited for sports and live event broadcasting due to fluctuating peak demand. “I see 2025 as a rebalancing of OpEx and CapEx as I believe organizations have been able to better evaluate the variability of cloud OpEx cost against capital cost for their operations,” said Philip Grossman, VP of business development and solutions architecture at DigitalGlue. “We will see things move towards more private-based cloud operations where cost can be more predictable and balance OpEx and CapEx investments. Public cloud offerings will assume more of a burst or expansion role.”
The shift toward hybrid infrastructure reflects broader industry uncertainty surrounding sustainable business models. “Cost pressures and uncertainty in the media industry’s evolving monetization models — ranging from subscription-based OTT services to ad-supported platforms — are creating significant challenges,” said Anupama Anantharaman, VP of product management at Interra Systems. “With no clear consensus on the most sustainable path to profitability, broadcasters face difficulties in forecasting ROI for new investments.”
Experts stress the need for ongoing cost-benefit analysis rather than one-time decisions. Reynolds emphasized that “A one-and-done calculation won’t cut it in a rapidly changing industry, so broadcasters may need to regularly revisit the TCO math to determine whether on-prem, cloud, or a hybrid of both will best meet their unique needs and budgets.”
The transition to cloud infrastructure is expected to be gradual, driven by practical considerations rather than solely technological possibilities. Successful strategies will likely focus on specific use cases where cloud benefits clearly outweigh costs, while maintaining hybrid infrastructure to leverage existing on-premise investments.