As the bright lights of Las Vegas faded and the halls of NAB Show 2025 emptied, one thing remained abundantly clear: the future of content distribution hangs in a delicate balance — somewhere between cloud abstraction, post-pandemic pragmatism, and the relentless pursuit of control.

Among the standout sessions was an invitation-only executive roundtable hosted by Levira. The session cut through the noise and zeroed in on the sector’s most persistent tension: insourcing vs. outsourcing. For an industry that thrives on precision and immediacy, this is no longer just an operational choice — it’s a strategic reckoning.

Insourcing vs. Outsourcing: The Eternal Pendulum

Let’s rewind. Between 2015 and 2020, the rise of streaming and direct-to-consumer (DTC) platforms like Disney+ triggered a wave of insourcing. Giants scrambled to own their tech stacks, acquiring backend capabilities like BAMTech to gain end-to-end control over distribution.

Then came the pandemic.

From 2020 onward, financial pressure forced a reversal. Outsourcing surged. Why? Because keeping large, internally managed distribution architectures afloat during industry-wide belt-tightening proved too costly. “We are here,” the timeline says — a point where broadcasters still outsource functions to stay lean, but wonder: at what long-term cost?

A New Chapter in Cost Control

Between 2023 and 2025, media companies fought for margin recovery. According to data shared in the session, average EBIT margins for a pool of 20 major broadcast players rose modestly from 6% to 11% year-over-year — hard-earned gains built on difficult choices. These included hiking subscription prices, cracking down on password sharing, trimming content budgets, and yes, pushing more tech functions out to third parties​.

The rationale seems obvious: outsourcing slashes CAPEX, offloads maintenance burdens, and offers flexibility. But the data—and the commentary—suggest otherwise. In what one speaker called a “clouded view,” the rise of cloud technology has blurred the traditional insource/outsource divide. Now, it’s no longer binary — it’s hybrid, hybrid, hybrid.

Cloud and the Myth of Simplicity

The cloud may be flexible, but it’s not a silver bullet. Financial hurdles remain, particularly for small and mid-sized media players. Customization is often replaced with configuration. Platform lock-in is real. And as Grace Boswood, Technology & Distribution Director at Channel 4, pointed out, “We’re a relatively small player… [so] if we move to a platform-based model, that functionality already exists and therefore it’s more of a configuration and customization job.”

In January 2024, Channel 4 announced an 18% headcount reduction and a major shift: outsourcing their streaming infrastructure. The move wasn’t just about saving money — it was about prioritizing core capabilities while letting platform providers handle the tech scaffolding.

People > Platforms in the AI Era

A more surprising insight from the Levira session? As artificial intelligence continues its integration into media operations, talent — not platforms — is emerging as the true differentiator.

The argument goes like this: AI will undoubtedly reduce distribution costs and streamline workflows. But the organizations that will thrive aren’t those with the most automation; they’re the ones with the talent to drive, customize, and ethically supervise AI systems. In other words, service excellence is increasingly about people.

This marks a shift from the last decade’s tech-first mentality to a more human-centric approach. A talented, adaptable team can squeeze real value from standardized platforms and transform generic services into differentiated experiences.

Flexible Contracts for a Dynamic Future

Another compelling takeaway? The traditional “set-it-and-forget-it” outsourcing model is obsolete.

Levira’s experts underscored the need for modular, flexible contracts — ones that can evolve with AI trends, adapt to shifting cost bases, and accommodate new delivery models. The rigidity of old vendor relationships is giving way to agile partnerships, where scope can expand or shrink in months, not years.

Size Still Matters

Despite all the cloud optimism, the conversation circled back to a basic truth: scale matters. Larger broadcasters may still find value in owning and evolving their own tech. For them, internal tools can be a path to product differentiation.

Smaller players, by contrast, are being more “ruthless,” as Boswood puts it. They’re doubling down on what matters most to their audiences — often outsourcing everything else.

Where to From Here?

As NAB 2025 demonstrated, the future of content distribution won’t be defined by ideology — but by flexibility, talent, and strategic nuance.

Outsourcing isn’t going away. Neither is insourcing. Instead, expect to see unisource models emerge — hybrid strategies that mix internal expertise with outsourced efficiency, all layered across cloud infrastructure. Throw in the rise of AI and the necessity of contract agility, and it’s clear: content distribution has never been more complex — or more critical.

Levira’s timely gathering didn’t just diagnose the state of the industry — it provided a compass for navigating its future. And in this era of rapid evolution, that’s exactly what content leaders need most.

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