Case Study: Rakuten ShowTime achieves 75% storage-cost reduction and streamlined multi-format, multi-DRM distribution with Microsoft Azure

Streaming service partners with Microsoft to build a powerful distribution platform

Rakuten ShowTime, Japan’s largest video‑streaming service with more than 120,000 titles and tens of millions of subscribers, struggled with rapidly rising storage needs and operational complexity as it prepared multiple formats, bitrates and DRM variants for every video. Its on‑premises system reached management limits—hundreds of millions of files—which hurt efficiency and streaming quality across the wide range of devices customers use.

Working with Microsoft, Rakuten migrated to Azure Media Services and Azure Storage and adopted dynamic packaging and dynamic encryption so a single master file can be transcoded and protected on demand. The change cut storage costs to roughly 25% of prior levels, reduced management costs by up to 60%, improved scalability and troubleshooting, and paved the way for new live‑streaming and ad insertion capabilities through an ongoing partnership.

Rakuten ShowTime

Osamu Hamada

Operating Manager, Systems Division