Content consumption is at an all-time high, and new platforms for consuming content, such as free ad-supported streaming TV platforms on smart TVs, are showing tremendous promise. With all this momentum, media technology providers like Amagi Media Labs that offer a wide gamut of solutions on the cloud to help media companies create, distribute and monetise content globally are much in demand.
Funding and Revenue Model
Amagi has been a profitable company, with its revenue growing 108 per cent last year. “Companies should focus their efforts on figuring out their unit economics, which will determine their ability to turn a profit,” says Baskar Subramanian, Co-founder and CEO, Amagi Media Labs.
In 2021, Amagi received $95 million in a financing round led by global SaaS venture capital company Accel, with participation from other existing investors such as Norwest Venture Partners and Avataar Ventures. The funding round raised Amagi’s valuation to more than $1 billion, making it a unicorn and one of the highest-valued media tech companies in the world. Since inception, Amagi has received about $250 million in funding.
“The unicorn status, while immensely helpful in building a brand and attracting talent, is by no means a reflection of a company’s success, and a lack of it is not an indication of failure.” says Subramanian.
Amagi offers its customers three business models to choose from: Software-as-a-Service (SaaS), ‘Bring your own licence’ as well as a fully managed service, and a revenue share model with content owners and streaming platforms based on ad insertions enabled.
Future of Media
When Amagi started, the expectation from the customers who were using on-premise hardware equipment was that the cloud solutions would stand the rigour when it came to reliability and scalability. When the industry transitioned to OTT, Amagi’s solutions were geared to deliver broadcast-grade quality even in a streaming TV environment.
According to Subramanian, in the coming months, there is going to be an emergence of more personalised content in the form of immersive experiences, ads catering to individual taste and preferences, and more. “Exciting times are ahead for us and we’re working to produce the best possible technology solutions that will help our customers ride this wave successfully,” he states.
Amagi is already the industry leader in the US and UK markets. This year, it made market entries into the DACH region, Australia, South Korea and Latin America. Amagi aims to expand its presence in these regions by widening customer base, partner networks and employee base.
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