As part of CDN World Forum 2016, this session explored the possible role of satellites moving forwards in the OTT content distribution model.

1. Content Delivery World 2016 - bs@ctoic.net
THE ROLE OF SATELLITE IN CONTENT
DELIVERY FOR OTT SERVICES
Ben Schwarz

2. Content Delivery World 2016 - bs@ctoic.net
Agenda
• Can satellite compete with CDN/IP content delivery?
• Will the advent of a new generation of low-orbit
satellites help keep them relevant?
• Opportunities in emerging economies for content
distribution via satellite-based services.
• So does satellite have any future?
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3. Content Delivery World 2016 - bs@ctoic.net
Can satellite compete with CDN/IP
content delivery?
• What do you think?
• I mean who would think up such question?
• This morning Donald Trump was elected POTUS, so
maybe anything is now possible…
• Come on seriously, what do you think I’m going to
say …?
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Doh!
Source IHS/SIA 2014
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Could the long tail pull satellites
down?
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In most markets
less than 20% of
lineup makes
more than 80%
of revenues
This is critical to
Sat business
model
Source C. Nussli TAES

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Stormy outlook in the Van Allen Belt
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Source C. Nussli TAES

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Why CDNs remain central to all of this
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Could telecom revenue compensate?
EUROCONSULT forecast for satellite capacity pricing in $ Mbps/Month
The most expensive IP transit
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Source C. Nussli TAES

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Will a new generation of low-orbit
satellites help keep them relevant?
• Very low cost, almost “disposable”
• 100’ or 1000s of mini satellites
• Closer means simpler, cheaper radio
– Including for consumer devices!!
• Lower latency
• Crazy ideas? e.g. embedding a mini CDN cache
• But space junk issue LEO (100 to 2k km)
MEO (20k km)
GSO (36k km)
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https://uploa
d.wikimedia.org/
wikipedia/commo
ns/b/b4/Comparis
on_satellite_navig
ation_orbits.svg
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Source Wikipedia

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A new beginning …
• Focused beams
• HTS seen the new sat shale oil
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Source Wikipedia

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Equatorial orbits are best for MEO
Oh that’s alright we’re Brexit anyway
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Source Wikipedia

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Opportunities in emerging economies
for content sat distribution
• Pay TV & Pareto will continue to drive growth 😀
– Astro (Malaysia) less at risk than say Canal+ (France)
• In Telecoms, opportunities exist for sat to fill gaps 😀
– E.g. in rural backhaul links to remote cell tower
• But poor man’s Internet can even be almost data-less 😞
– USSD: Unstructured Supplementary Service Data
• GAFA initiatives
– Facebook internet.org (connectivity as a human right) 😀
– Microsoft (again), Google (project Loon), …
– Stratospheric balloons, drones, satellites, …
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Scenario planning from ongoing ESA driven
consortium
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ESA MENDHOSA consortium restricted - 2016
Healthy, wide
ecosystem
GAFA-N
Convergence
Premium TV
Cost-driven TV
The CDN-
Broadcast
marriage
Status Quo -
Sat Paradise
Ad-driven
global
audiences
Winner takes
all UHD
Premium
advertising
YouTube-
Long tail
1
2
4
3
US
domination Netflix+
UGC
Sponsorship
Big Data
Innovation
Extended
caching
User driven
network behavior
P2P
Less bundling
Content
remains King
4K

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Show me the money
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Studio
Net
Operator
Distrib CPE
CDN
Operator
Tech solution(s)
Regulator
Ad Consumer
ESA MENDHOSA consortium restricted - 2016

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So is there any future for Sat?
• Satellite’s Damocles sword(s) 😞
– Uplink & Latency
• Despite amazing progress, convergence with terrestrial return link performance
isn’t on the horizon.
• However hybrid return links may make sense. 😀
– Lowering quality expectations (including on Delay)
• The core business model of sat distribution requires audiences to
want access to key live channels. 😀
– Evidence in developed markets is unclear,
– In emerging markets no short-term risk.
• With DTH, sat has a UHD advantage 😀
– E.g. launches in SEA 😀
– (except over 100Mbps+ homes) 😞
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Thank you
Benjamin Schwarz
+33674787954, bs@ctoic.net, twitter/Skype: nebul2

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CTO innovation Consulting
• Strategy consulting
• International benchmarks
• Service architecture
• Disruptive business models
• Quality of Experience
• RFP/RFQ management
• Innovation management
• Audit & Risk analysis
• Scenario planning
• Writing, PR
Video, IP services, UHD, CDN, telecoms, IPTV, streaming, …

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CTO innovation Consulting customer list
Content and network Operators Technology providers