Why Big Tech’s Move Into Media Infrastructure Could Mean Game Over (or Level Up) for Traditional Media
The lines between tech and media continue to blur at warp speed. What started as Big Tech’s role in media being limited to social media algorithms has come to increasing dominance of a few major players in the consumption of our media today. And now they come not only after content curators but also key players in infrastructure, distribution, and, increasingly, control. The likes of Google, Amazon, and Apple aren’t stopping at cloud storage or streaming services; they’re grabbing chunks of the very pipelines that get your content from A to Z, including undersea cables, satellites, and massive content delivery networks (CDNs).
For industry leaders, it’s time to pay attention. This isn’t just Big Tech dabbling in media—it’s them preparing to own it from top to bottom. Follow me when I lay out here how this infrastructure dominance plays out and what it could mean for traditional media companies and broadcasters.
A Sneak Peek at Big Tech’s Empire-Building
It’s no secret that companies like Apple, Google, and Microsoft have been investing billions in media and communication infrastructure:
Content Delivery Networks (CDNs): Google and Amazon are pouring resources into their own CDNs, which means faster, smoother content delivery but also more control over how content reaches viewers. In a way, they’re reshaping the very roads on which media travels.
Undersea Cables: Google and Microsoft are also investing in undersea cables, which currently carry 99% of international data. Picture a network of high-speed highways under the ocean, owned by a handful of corporations. By 2023, Big Tech investments are expected to represent up to 50% of the total funding for these critical cables.
Satellites: Apple’s venture into satellite-to-device communications with Globalstar is no small move either. By investing over $1 billion in Globalstar, Apple has set up a system to provide satellite services directly to devices, a development that’s bound to influence connectivity as we know it.
These investments give Big Tech an unprecedented advantage in the distribution chain. With so much infrastructure under their control, they can optimize delivery, cut costs, and keep an even closer eye on user data.
What This Means for Broadcasters and Media Companies
Now, what does all this mean for media companies? For starters, the power dynamics are shifting—and not necessarily in favor of traditional broadcasters.
Gatekeeping Power: Big Tech could soon control the speed, quality, and accessibility of content delivery. Imagine a world where a major tech company determines how visible or prioritized certain content is across their networks. For broadcasters, this raises a big question: if you’re not “in” with Big Tech, are you “out” in terms of visibility?
Reduced Bargaining Power: With Big Tech owning the pipes, traditional media companies might find themselves in a weaker negotiating position. When Google or Amazon controls the delivery mechanism, media companies may have little choice but to play by their rules or get squeezed out.
Revenue Pressure: With Big Tech able to bypass traditional telecom infrastructure for certain services, like Apple’s satellite communication setup, the entire media ecosystem might have to adapt to new cost structures. Traditional broadcasters might need to rethink how they structure their deals and advertising models to stay competitive.
Big Tech as Frenemy or Foe?
As much as we like to think of Big Tech as the industry’s “frenemy,” there’s a strong case for viewing this more critically. When a few corporations control both content and the underlying infrastructure, we’re talking about serious market concentration. And with that comes an even stronger hold on global data—information about who watches what, where, and how often.
As an advisor in this space, I’ve seen the disruption waves firsthand. This isn’t just about new gadgets or platforms; it’s about control over the entire media pipeline. And while some media companies have the resources to go toe-to-toe with Big Tech, many smaller players will be left to scramble for survival.
What’s Next? Playing Offense, Not Just Defense
For broadcasters and media companies, the path forward involves a mix of collaboration and innovation. Here are a few ideas to stay ahead:
Strategic Partnerships: If you can’t beat them, partner with them—at least strategically. Working with tech giants can provide access to their infrastructure while maintaining some autonomy in content delivery and audience engagement.
Invest in Niche Technologies: Embrace emerging tech like edge computing and AI-driven CDNs to improve content delivery independently. By investing in niche technologies, companies can avoid full reliance on Big Tech’s infrastructure.
Regulatory Advocacy: Let’s not forget the role of regulation. Industry leaders must advocate for policies that promote infrastructure neutrality, data transparency, and competition.
Experiment Boldly: It’s time to take risks. Invest in unique, value-added content, such as shoppable TV experiences or interactive news formats. These innovations can set you apart and create engagement in ways that go beyond what Big Tech can offer.
Big Tech Isn’t the Enemy, But It’s No Longer Just the Neighbor
Big Tech’s influence on infrastructure changes the game, and the implications are enormous. But as media companies, we have an opportunity here to adapt and reinvent. We’ve navigated waves of change before, and this is another moment to dig in, find the right strategies, and define our place in the evolving media landscape. This isn’t the end—it’s just a new chapter.
It’s time to be strategic, agile, and yes, a little bit sassy. Because if you’re not prepared to rethink and rewrite the rules, Big Tech surely is.
