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New Relic report reveals media and entertainment sector looks to observability to drive AI adoption

Source Decision Insights Coverage Published March 26, 2025 Companies 1
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1st article in the last 90 days, the first article referencing New Relic.

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New Relic published its State of Observability for Media and Entertainment report, revealing that 35% of media and entertainment professionals recognize observability as essential for supporting Artificial Intelligence (AI) adoption.

The report indicates that AI monitoring remains the most utilized observability capability within the industry, at a rate of 60%. This suggests a strong alignment between observability practices and AI integration.

Investment in observability shows notable returns, with respondents reporting a 296% return on investment (ROI). The findings underscore the significance of observability in enhancing operational efficiency in media and entertainment organizations.

AI adoption emerges as a primary strategic driver for observability, with a third of respondents indicating its importance for improving customer insights and operational efficiency. This trend illustrates media and entertainment organizations' commitment to leveraging AI for better decision-making.

However, the report highlights that media and entertainment companies face challenges in outage detection, with only 43% using observability tools to identify disruptions. As a result, the industry experiences a median mean-time-to-detection (MTTD) of 56 minutes—higher than the average across other sectors.

These organizations also strive for Full Stack Observability (FSO) but currently face barriers such as tech stack complexity, which 39% cite as a major challenge. While only 20% have achieved complete observability, the sector is prioritizing comprehensive platforms capable of integrating business outcomes with performance data.

As companies focus on aligning observability strategies with business objectives, the preference for a consolidated OP remains evident. Despite 56% favoring an integrated approach, only 27% plan to consolidate tools within the coming year, indicating areas for potential improvement in operational alignment.

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