The broadcast industry's move to cloud infrastructure is proving more intricate than initially predicted. While modernization and cost-cutting are key drivers, ongoing costs, security issues, and integration complexities are pushing many broadcasters towards hybrid models rather than 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,” notes Thorsten Sauer, CEO of Pixel Power.
Financial considerations heavily influence cloud adoption. Without significant revenue boosts from events like elections or the Olympics, broadcasters must carefully assess total cost of ownership. “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,” explains Steve Reynolds, CEO of Imagine Communications. He adds, “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.”
Integrating cloud technology with existing infrastructure presents significant hurdles. Dan Goman, CEO of Ateliere Creative Technologies, highlights the challenges: “Broadcasters face significant challenges in adopting new technologies due to their reliance on outdated infrastructure and legacy systems, which complicate integration with modern cloud-based workflows and AI-driven tools. The costs associated with technology updates, staff training, and hardware upgrades can be prohibitive, especially for smaller organizations competing against well-funded rivals.” Security is another paramount concern. Andy Rayner, CTO of Appear, points 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 trending towards hybrid approaches, combining cloud flexibility with the security and cost advantages of on-premise systems. Neil Maycock, CCO of Pebble, emphasizes that “Commercial models from technology suppliers should align with the need to operate across different infrastructures. For some companies, CapEx may suit their requirements and corporate budgeting, especially in cases with predictable usage patterns. However, operations requiring flexible broadcast patterns can benefit from OpEx, which better aligns costs with revenues.”
This hybrid model is particularly suitable for live events, where demand fluctuates greatly. Philip Grossman, VP of business development and solutions architecture at DigitalGlue, observes, “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. 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 towards hybrid infrastructure reflects broader industry uncertainty. Anupama Anantharaman, VP of product management at Interra Systems, notes, “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. With no clear consensus on the most sustainable path to profitability, broadcasters face difficulties in forecasting ROI for new investments.”
Experts advise against one-time cost-benefit analyses. Reynolds stresses 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 move to cloud will be gradual, guided by practical considerations rather than solely technological advancements. The most successful strategies will focus on specific use cases where cloud benefits clearly outweigh costs, while integrating existing on-premise systems.