Observability Accelerates AI Adoption in Media and Entertainment

The newest report from New Relic, the State of Observability for Media and Entertainment, shows how the industry is using observability to boost AI adoption, improve digital operations, and enhance outage detection. AI monitoring use is estimated at 60%- the highest of any industry- and media use observability to maintain the speed, uptime, and reliability expected in a digital world.

Strategic Investments in Observability Yield a High Return

On Investment (ROI)On average, respondents who prioritize observability report a significant return on their strategic investments, an estimated ROI -296%. 

According to Nic Benders, Chief Technical Strategist at New Relic, "Media and entertainment organizations rely on observability to keep the content flowing and the audiences engaged. Their strategic investments in observability provide them with 4x ROI."

AI and Containerization Shape the Future of Observability

As noted, observability adoption in the industry is also being driven by AI (35%), security and compliance (39%), multi-cloud migration (35%), and IoT adoption (33%). 

A significant 34% of media organizations are also more likely than organizations from any other sector to cite containerization as a key adoption driver. AI-assisted runbook generation (35%) and automated remediation actions (33%) are some of the leading AI-visible capabilities media organizations report have been the most beneficial. In addition, automatic root cause analysis (32%) and predictive analytics (32%) are helping media companies improve performance and reduce disruptions.

Millions of Dollars lost due to Laggy Outage Detection

Despite the strides made , media and entertainment companies are still facing problems with discovering outages. The organization reports a median Mean Time to Detection (MTTD) of 56 minutes which is 51% worse than median MTTD across all industries. As media has the largest median hourly outage cost of $2.2 million, improving operational efficiency on incident responses is the most important priority at media companies.

The Move to Full Stack Observability

Despite only 20% of media companies achieving full-stack observability (lower than the industry average of 25%), there is a clear desire to overcome more complex challenges of a digital tech stack. The majority (56%) prefers using one observability platform with full-stack coverage, but only 27% plan on consolidating tools in the next year, which is the lowest rate in any industry.

Observability in the Future

The demand for streaming services and digital experiences are driving competiveness in media and entertainment, and it will be imperative for organizations to continue to invest in observability, including AI, containerization, and predictive analytics. As they move to achieve full-stack observability, the understanding of when to prevent problems and understanding how to solve problems before a customer reports an issue will be key to improving customers service and ultimately revenue.