If you are a service provider, the title of this blog probably has you shaking your head. SPs know only too well that Internet video is costing them money because of the expense of maintaining an infrastructure capable of delivering high-quality online video. The good news is that there is a way to monetize that demanding video traffic.
In 10 to 15 years, Cisco Internet Business Solutions Group (IBSG) estimates that consumers will be watching Internet video as much as 50 percent of their video-watching time. Rather than panicking at the thought of supporting that magnitude of video traffic, SPs should be thinking about how to turn it into profits.
SPs have a strategic advantage over current content delivery network (CDN) providers; traditional CDN services allow content providers to bypass Internet congestion points, but do not allow them to bypass potential congestion points within the SP network that provides Internet access to consumers. CDN services delivered via the SP’s network are delivered by CDN caches placed much closer to the final viewer, reducing the probability of having congestion issues over the delivery path.
One clear trend, here at the close of 2010, is the rise in importance of Content Distribution Networks, or CDNs, to cable service providers.
Here at Cisco, CDNs are similarly front-of-mind.
In this video, I outline three drivers for the growth of Content Distribution Networks (CDNs) in service provider networks:
To more easily reach video-capable, IP-connectable end points, with more types of video assets
To centralize movie and video asset distribution, instead of manually populating hundreds of distributed video on demand servers
To attract new revenue sources, such as wholesale content distribution.
Our ongoing work with British Telecom, for instance, helped them establish an important and new business model: Extending BT’s quality of service (QoS-)enabled CDN to their broadcasting and media partners, within the YouView [Canvas] initiative.
Plus, as service providers prepare competitive video offerings to serve screens beyond the television - an undeniable trend across our customer base - CDNs provide a great mechanism to scale streaming video.
In this brief video discussion, Cisco’s Director of Video Solutions Marketing, Murali Nemani talks candidly about “what’s in it for cable” to deliver a suite of IP video services. In his view, it’s a three-step process that’s already beginning.
First, sending video services over bonded DOCSIS channels means pursuing the only path to those 15 billion video-hungry, IP-enabled end points which analysts predict will be present at the end points of the broadband network within 5 years. Whether “managed” (by the cable operator, such as cable modems and set-tops) or “unmanaged” (purchased by consumers), those IP end points will be seeking video over broadband.
Second, the continued attention and investment in DOCSIS 3.0 rollouts will help fend off competitive broadband “speed wars” while laying the foundation for video delivered over IP. Cable operators have the plant capacity, spectrum, and scale to reach an unprecedented footprint of IP end devices.
Lastly, cable’s continued work on the “video back end,” from content delivery networks (CDNs) to set-tops and next-generation gateways, will help the industry permeate the IP video marketplace and drive adoption across the U.S.