Content providers can now take control of their own delivery to meet expectations of higher quality and lower delay TV
STOCKHOLM, Sweden– March 28, 2017 – At the 2017 NAB Show, Edgeware, the pioneer of TV content delivery network (TV CDN) technology, will present research it has commissioned into when content owners and distributors should consider building their own TV CDN for online OTT and live TV service delivery.
“This is an approach that the major players like Netflix have taken. But as popularity in OTT TV grows, it’s becoming clear that it’s not just for the big guys,” says Edgeware CEO Joachim Roos. “Many of our customers have built their own TV CDNs, either to improve viewing quality or simply because the economics work better than paying into a CDN service every month.”
To help content owners who are considering whether they should deliver their programming on their own networks, Edgeware has modelled the business case for a self-built TV CDN. This is based on the balance between number of regular users, and how long they view content versus the cost of equipment, software licenses, backhaul capacity, rack-space, power and operational staff.
“There are several metrics that drive the business case for or against a CDN service. At a certain stage, there’s a tipping point that makes it worthwhile for content owners to begin delivering programming themselves, using their own system,” explains Richard Brandon, CMO at Edgeware. “If viewers are dispersed around the world, or popular content is only available a few times a week, then a CDN service is always going to be more cost-effective. But for many TV operators, who serve a well-defined geography and have a growing number of viewers watching every day, a self-built TV CDN can pay for itself within a matter of months.”
This business case for self-built CDNs is also discussed by leading analyst firm Frost & Sullivan who in its recent report, Building Your Own CDN For Video Delivery: Why, When, And How, make the point that “as content volumes grow, the cost of owning and operating a private CDN begins to look more attractive than pay-as-you-go.”
Avni Rambhia, principal analyst at Frost & Sullivan says: “The unicast nature of on-demand TV-Everywhere strains infrastructure. As OTT consumption grows, operators are aggressively seeking options to optimize use of their existing broadband infrastructure to maximize delivery capacity.”
As visitors to booth SU9602CM at the 2017 NAB Show will find out, higher-quality TV adoption such as 4K viewing, will only strengthen the case for a self-built TV CDN, as increasing bit-rates will drive up the costs of third-party CDN service.
Edgeware has seen the trend towards self-built TV CDNs reflected in its own business growth. After going public in December 2016, Edgeware posted an end-of-year annual increase in sales of 23.9%. Analyst firm Kagan Research recently placed Edgeware as leader in the VOD server market in three out of six worldwide markets. This is in the same year that the company passed the milestone of deploying over 1,000 TV servers in TV CDNs around the world.
Edgeware will be showcasing its TV CDN technology and presenting its self-build business case on booth SU9602CM at the 2017 NAB Show held at the Las Vegas Convention Centre between 24 – 27 April. CMO Richard Brandon will be presenting the session: TV CDNs: When, Why and How to Build Your Own, at the CMIP Presentation Theater on Monday April 24 at 12.30pm. In addition, Johan Bolin, VP products at Edgeware, will take part in the Connected Media | IP Panel Debate 7: CDNs, Cloud-Playout, Edge Caching – How Can We Innovate and Improve Content Distribution Strategies?This takes place on Wednesday April 26 at 12pm at the CMIP Debate Theater. Both presentations are open to all NAB Show visitors. Find out more about Edgeware here.
Edgeware provides operators and content owners with the tools to deliver their TV services at huge scale and low cost. Edgeware’s unique technology gives control and insight back to the content provider and delivers TV with an outstanding viewing experience. Edgeware is headquartered in Stockholm, Sweden, with offices worldwide.
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