Cognitive Media Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Cognitive Media Market is expected to register a CAGR of 22% during the forecast period (2021 - 2026). With the increasing differentiated consumer base, the media companies today are uniquely challenged and are dropping the traditional business models. With the proliferation of new distribution channels and the increasing need to create new content, the media companies are using cognitive computing solutions in order to match the content with an increasingly fragmented customer base.

Key Highlights

• Moreover, the media industry is witnessing a major transformation primarily owing to a series of revolutionary changes. This has led to an increase in the adoption of cognitive solutions in order to address the lack of visibility of the end-to-end workflow system and the changing customer preference across content consumption. These factors have also motivated media companies to digitize their media supply chain.
• Modern streaming content providers such as Netflix are constantly releasing new content, much more than the customers can keep up with. As a result, one of their biggest challenges is making sure that the users know about the new programs that might interest them. The company is using AI technologies to face these challenges and has helped it to increase its user base. At the end of 2019, the company had a subscriber base of 167.1 million. as compared to a customer base of 139.26 million at the end of 2018.
• The rapidly increasing customer expectations and the evolving competition among the media and internet video providers are currently shaping the media and entertainment industry landscape. In order to combat these competitiveness and increasing challenges in the industry, multiple companies are improving their capabilities by adopting cognitive solutions.
• With the recent outbreak of coronavirus, it has forced nationwide lockdowns in many countries across the globe. This has primarily led to the people increasing their media consumption. The cognitive solutions are expected to witness increased demand from content providers in order to provide more customized content and retain their customers.

Key Market Trends

Cloud Deployment is Expected to Witness Significant Growth

• The cloud deployment of cognitive solutions is anticipated to significant growth during the forecast period. This growth can be primarily attributed to the high infrastructure costs related to the traditional solutions, hence, most of the media companies today are adopting cloud-based solutions owing to their flexibility and for enhanced security.
• The online media content consumption has shown tremendous growth over the past few years. There has been a surging demand for mobile devices as the preferred medium of consuming media online. Also, according to the Cisco VNI report, 80% of internet traffic is being generated from the video-streaming segment.
• Moreover, there is a surging demand for online media content as compared to that of past trends. This spike in the usage is primarily owing to the growth in user-centric streaming content provided by the media vendors, which is based on past user preference, which is helping them to create content according to the relevant genre. This helps a lot of content owners to solve the challenge of delivering content over the web.
• While the video-content streaming is dominated by Netflix, whereas emerging services from existing vendors such as Amazon, Hulu, HBO Now, and YouTube are all growing their subscriber base across the developing economies. With a significant number of players entering the market, the companies are offering differentiating factors in order to take a competitive advantage in the marketplace.
• For instance, in Nov 2019, Amazon Prime Video, along with Critical Role, today announced the service will be the exclusive streaming home for the upcoming animated series Critical Role: The Legend of Vox Machina, based on the adventures and characters of Critical Role, a leading story-driven and world-building digital media brand.

North America is Expected to Hold Significant Market Share

• The North American region is expected to hold a major share in the market as the media enterprises in the region are using the AI technologies for multiple applications, such as personalization, content management, recommendation, among others. Another noticeable trend in the market is the aggressive mining of user data. This collected data is primarily being used to serve customers by helping them in finding content that would appeal to them.
• The online platform in the region is also expanding at a very fast pace with the inclusion of new innovative technologies that are primarily meant to enhance personalized user experiences. Major players operating in the broadcast and digital media sectors in this region are increasingly adopting new technologies and generating new content in order to increase their revenue in their online platforms that offer hours of media-related content, such as music and films.
• The region is also home to most of the major online media providers such as Netflix, Inc., Amazon, Inc., Hulu LLC among others which has led to an increased market competition, with the major players fighting vigorously in terms of number of subscriptions and the variety of content.

Competitive Landscape

The Cognitive Media Market is highly competitive owing to the presence of multiple small and large players operating in domestic and international markets. The market appears to be moderately concentrated with the major players in the market adopting key strategies such as product innovation, mergers, and acquisitions in order to widen the product functionality and expand their geographic reach. Some of the major players in the market are IBM Corporation, Google LLC, Amazon Web Services, Microsoft Corporation, among others.

• May 2020 - C More company in Finland adopted the advanced video AI from Valossa to serve their customers better and make the content attractive to audiences at a glance. With the help of Valossa's Auto preview, the company deployed a rapid and automated way to add video promotions to their platform. The added short video clips are helping the company to create excitement for customers in choosing the content they plan to watch next.
• Jun 2020 - Veritone’s fully-owned subsidiary Veritone One, one of the prominent performance influencer and audio advertising agency, announced that Purple has selected the company as the agency of record for audio advertising. The company will leverage Veritone’s proprietary AI technology for real-time ad campaign tracking and advanced performance reporting.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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