Presentation by

1
BROADCASTERS AGGREGATORS FILM STUDIOS VIDEO
PORTALS
P2P Media SummitAddressing the cost and
performance challenges of digital media content
delivery

• Presentation by
• Andrew Parker, CTO
• (aparker_at_cachelogic.com)

MUSIC LABELS SOFTWARE VENDORS COMPUTER GAMES
VENDORS
2
Introduction to CacheLogic

• Market leader in the provision of P2P management
  solutions to the ISP/telco sector
• P2P-Management
• Protocol-based P2P recognition and on-network
  caching solutions
• Streamsight Analysis Network
• Layer-7 application layer DPI network providing
  Internet traffic analysis for ISPs
• VelociX
• Hybrid peer-assisted platform for digital media
  delivery
• Large object, digital asset delivery service for
  content owners film, video, broadcast, music and
  software vendors

Global Coverage and Support

• Commercial Overview
• Headquartered in Cambridge, England, regional
  offices in the USA and Singapore
• July 2006 closed 20 Million Series C funding
  round

3
P2P as future of distribution
CacheLogic Research Internet Protocol Breakdown
1993 - 2006

• P2P has been at the forefront of the
• exponential growth in demand for on
• line digital media
• 1999 to present fuelled by Napster, KaZaA,
  eDonkey and BitTorrent
• More than 60 of P2P traffic is video
• Asia - 50 Objects gt 2.5Gb !!

CacheLogic Research Breakdown of File-Types on
Major P2P Networks - 2006

• P2P usage is widespread and growing
• 2004 3 million unique IP addresses in 30 days
• 2006 3 million unique IP addresses in 8 days
• Continuing Impact on ISPs
• 50-65 of downstream traffic is P2P
• 75-90 of Upstream Traffic is P2P

4
P2P is a global phenomena
5
Why is P2P so attractive ?
MP3 Single (e.g. iTunes)
Typical MP3 file size 5MB
Commercial value 1.00
Value/data density 0.20 per MB/ 200 per GB

• Scalability
• Existing distribution and streaming technologies
  penalise content owners for success!
• The economics of P2P delivery are much closer to
  broadcast economics

DVD - 5Mbps x 90 minutes 3.5GB
Rental Model
Commercial value 3.50
Value/data density 1 per GB
Purchase Model
Commercial value 16.00
Value/data density 4.57 per GB

• Decreasing Revenue per GB
• Big disparity between Audio and Video
• HD will make this problem even worse
• iTunes
• 1.00 (5Mb Audio)
• 1.79 (500Mb Video)

6
Sounds Great.But
7
Todays Internet is not Designed for Symmetric
Traffic

• The Internet has been built on the premise of
  core-to-edge distribution
• High Capacity Data Centres, Large Core,
  Asymmetric Small Edge
• Cost and performance optimised by Peering and
  Private interconnects with content
• P2P places the burden of content distribution on
  the access network

8
Broadband Access Network Design - DSL

• ADSL and Cable modem were designed for asymmetric
  traffic
• Web
• VOD
• ADSL
• Download lt7Mbps
• Upload lt 800kbps
• 111
• ADSL2
• Download lt24Mbps
• Upload lt 1Mbps
• 241
• Asymmetry is increasing

9
Impact of P2P on Service Providers
Transit/Peering

• 50-65 of downstream traffic is P2P
• P2P is expensive bandwidth
• In most countries 90 of P2P traffic crosses
  international boundaries
• P2P applications aggressively consume all
  available bandwidth

10
Impact of P2P on Service Providers Access

• P2P is inherently symmetrical
• Most traditional protocols are download
  orientated (e.g. web)
• This makes Peer-to-Peer a huge problem for last
  mile providers
• Responsible for 75-90 of upstream/last mile
  traffic on the network.
• But I thought P2P was making efficient use of
  underutilised upstream capacity in the network

11
VelociX introduction
BROADCASTERS AGGREGATORS FILM STUDIOS VIDEO
PORTALS MUSIC LABELS SOFTWARE VENDORS
COMPUTER GAMES VENDORS

• Worlds first multi-protocol peer-assisted media
  delivery platform - creating an environment for
  secure, scalable and cost effective media
  distribution to mass and niche markets
• Economic benefits and scalability of P2P
• Resilience, accountability and efficiency of a
  physical delivery network
• Resolves ISP Neutrality
• Key Benefits
• High-speed delivery
• Mass audience scalability
• Cost-effective large object distribution

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CacheLogic, NTL, BitTorrent
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How it Works
Content P2P
Server Look Up
Server
Tracker
Server
The Tracker works as normal to findPeers that
can support the download
If it is legitimate content, a cache is added
into the Peer group.
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The Results of the Trial
content Film H comment Unbelievable speed! 18
mins for a 1.2Gb file. Awesome! content Episode
3 comment 350mb in 5mins! epic! content
Episode 2 comment 350mb in 7 mins!!!!????
awesome!!!

• Trialists on a 10 MB/s service saw a x14 average
  increase
• Trialists on a 2Mb/s service saw a x9 average
  increase
• Trialists on a 1Mb/s service saw a x6 average
  increase

It works! No longer upload constrained ( less
upstream traffic)
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Summary

• Economics for existing content distribution are
  broken, and will get worse as content continues
  to grow.
• P2P can resolve the economic challenges, but is
  transferring the burden of the cost elsewhere.
  The ISP
• The ISPs interests can also be balanced, ala NTL
• Reduced costs
• Increased legal content to drive network usage
  and stop ISPs becoming commoditised bit-pipes

16
Thank You!
17
Traditional Content Delivery vs. P2P
Consumer
Consumer
Access
Access
Backbone
Backbone
Host
Host
Content
Content
But in a P2P world it flows like this
Content Flows like this