Content is not king! 2001 presentation on video caching for ISPs

411 views
308 views

Published on

A very old presentation on how to get video to consumers over broadband - pre-YouTube by 4 years...

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
411
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Content is not king! 2001 presentation on video caching for ISPs

  1. 1. Content is not king! It’s John the Baptist Chris Marsden Principal Consultant Re: Think! Broadband Ltd
  2. 2. Why Content is Not King • Content is bytes not bucks – It’s volume not value • Consumers don’t pay enough • Businesses want connectivity: pipes • Advertisers can’t cover the gap
  3. 3. Consumers pay for content? • Direct payment replaced by advertising: – Network television & radio – Newspapers • Direct payment for: – video (Blockbuster + adult) – computer games – niche magazines – Niche cable channels
  4. 4. Businesses want connectivity • Pay for broadband pipes: – Data transfer – VoIP • Limited content usages: – ‘Coffee break theatre’ – Training – Financial updates
  5. 5. Advertisers can’t cover the gap • Advertisers buy audiences, not people: – Inefficient substitute for consumer preferences – Insufficient niche targeting – Especially on broadcast, ‘brand building’ • Business-2-business advertising: – Tends to monopoly: minimizes transactions – Supports targeting especially for classifieds
  6. 6. Content is not king… 1. Of the Web… – Where design functions against content – Where content chokes more profitable uses – Where value is driven by email 1. Of the Internet – Where the WWW is a small proportion – Corporate data transfer dominates
  7. 7. Where content is king! • Of broadband consumer networks – Wider definition: video email/conferencing – Extreme niche micro-communities – Data traffic driven off the WWW – Replaces niche cable • Or at least lots of princesses – Streaming audio/video – MP3/DivX downloads – WWW portals and ‘walled gardens’
  8. 8. Content in Convergence “If convergence moves delivery of most of the content to the Internet, and transport grabs 2/3rds of the revenues from content, then the network will get a huge new source of revenue” • Ben Compaine, MIT, 2001 • http://itel.mit.edu
  9. 9. But IP networks won’t get it all • Broadcast remains efficient for universal delivery • Newspapers are ‘a useful flat panel display’ • Downloaded content is efficient • Streaming content is not – Networks need more streaming content to increase mission-critical use of bandwidth
  10. 10. Local Streaming Beats Downloads • Real-time streaming needs redundancy – Downloads can queue in the system – Downloads create latency: world-wide-wait – Downloads can be copied • Internet streaming is uneconomic – Cost per stream to host – Cost in peering for ISPs
  11. 11. Content Kings for Networks • ANSWER: Locally hosted content – No latency – No network peering – Local hosting • Compelling ‘live’ content hosted locally • Compulsion: adult, sports, games, comedy
  12. 12. Broadband consumer network • Need to drive usage • Without excess WWW-hosted traffic • Answer: • Your friendly neighbourhood • ‘Glut of smut’!
  13. 13. The Killer App • Adult streaming video on demand • No latency • Massive revenue share – (up to 90% on US cable) • Huge untapped home demand • Compelling content
  14. 14. Why adult? • High demand • Low cost • Supply glut • Quality preference – e.g. Vivid • Market educated – exponential increase in niches – Increased acceptance in relationships
  15. 15. Content Drives Network Usage • Consumers don’t pay high direct costs • ISPs gain in network traffic • Economics of local network distribution • Content drives subscription • Adult: – Salome proved compelling content choice
  16. 16. And the future? • From streaming to downloading – As security/encryption improves • From top-down to bottom-up – Home video and email with camera purchases • Peer-to-peer – File sharing – ‘Video Gnutella’
  17. 17. Streaming Now, Peering Later • To learn more: • Read

×