Netflix, Blockbuster, and streaming content ... what impact?

I've been seeing a flurry of new streaming service offerings, proposed or
actual, such as Netflix, where it appears that they may be shooting to
eventually ditch the mailed-DVD approach and just do broadband delivery of
content. Might be a ways off, but they're doing the streaming now.

http://www.bloomberg.com/apps/news?pid=email_en&refer=&sid=a1zxwiC6ELnA

So we're potentially talking 4Mbps streamed at a customer for 2 hours at
a shot, 500KB/s, 3.6GB of data.

I know I've mentioned this several times in the past as a "coming
challenge," and various parties, including many of our Australian
networking friends, have expressed skepticism (and implemented
quotas, etc). Yet it seems ever more certain that we're going to be
seeing an explosion of video over the Internet, and sooner or later
our rural areas, and all of the Australians ( :slight_smile: ), won't want to
feel like left-out, second-rate Internet users.

I see the current situation as being a gateway of sorts. Clearly,
there are fortunes to be made and fortunes to be lost on this sort
of thing, and I suspect that if some company is successful at this
sort of streaming, we'll suddenly see a lot more business plans
that involve Internet video delivery.

This would seem to present some challenges to networks today, and
probably more in the future. This would seem to be a pivotal time of
sorts, are our networks planning to meet this challenge by providing
the capacity, or are we going to degrade or limit service, or ... ???
What are networks doing today about these issues?

... JG

The UK has already had this experience in early 2008 when the BBC began
making huge amounts of TV content available through its iPlayer project. The
impact on the DSL ISP industry was..not pretty. Our company did quite a bit
of analysis on the results:
http://www.telco2.net/blog/2008/02/bbcs_iplayer_nukes_all_you_can.html
http://www.telco2.net/blog/2008/04/bbc_its_paymasters_cutting_the.html
http://www.telco2.net/blog/2008/06/no_video_really_has_killed_the.html
http://www.telco2.net/blog/2008/07/online_video_scoreboard_youtub.html
http://www.telco2.net/blog/2008/08/bbc_iplayer_bandwidth_wars.html

Essentially, if you're dependent on bitstream or on monopoly/near monopoly
backhaul, you're in for an interesting few years. Answers: encourage peering
with content providers, push CDNs as far into the network as possible, look
at using set-top boxes creatively (local caching, integrated delivery with
satellite/broadcast/cable).

Alexander Harrowell wrote:

The UK has already had this experience in early 2008 when the BBC began
making huge amounts of TV content available through its iPlayer project. The
impact on the DSL ISP industry was..not pretty. Our company did quite a bit
of analysis on the results:
http://www.telco2.net/blog/2008/02/bbcs_iplayer_nukes_all_you_can.html
Telco 2.0: BBC and its paymasters: Cutting the Gordian knot
Telco 2.0: Video - Achilles heel of the mobile ISP
Telco 2.0: Online Video Usage Scoreboard: YouTube thrashing iPlayer
Telco 2.0: BBC iPlayer Bandwidth Wars

Essentially, if you're dependent on bitstream or on monopoly/near monopoly
backhaul, you're in for an interesting few years. Answers: encourage peering
with content providers, push CDNs as far into the network as possible, look
at using set-top boxes creatively (local caching, integrated delivery with
satellite/broadcast/cable).

I've been seeing a flurry of new streaming service offerings, proposed or
actual, such as Netflix, where it appears that they may be shooting to
eventually ditch the mailed-DVD approach and just do broadband delivery of
content. Might be a ways off, but they're doing the streaming now.

Bloomberg Politics - Bloomberg

So we're potentially talking 4Mbps streamed at a customer for 2 hours at
a shot, 500KB/s, 3.6GB of data.

I know I've mentioned this several times in the past as a "coming
challenge," and various parties, including many of our Australian
networking friends, have expressed skepticism (and implemented
quotas, etc). Yet it seems ever more certain that we're going to be
seeing an explosion of video over the Internet, and sooner or later
our rural areas, and all of the Australians ( :slight_smile: ), won't want to
feel like left-out, second-rate Internet users.

I see the current situation as being a gateway of sorts. Clearly,
there are fortunes to be made and fortunes to be lost on this sort
of thing, and I suspect that if some company is successful at this
sort of streaming, we'll suddenly see a lot more business plans
that involve Internet video delivery.

This would seem to present some challenges to networks today, and
probably more in the future. This would seem to be a pivotal time of
sorts, are our networks planning to meet this challenge by providing
the capacity, or are we going to degrade or limit service, or ... ???
What are networks doing today about these issues?

... JG
--
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
"We call it the 'one bite at the apple' rule. Give me one chance [and] then
I
won't contact you again." - Direct Marketing Ass'n position on e-mail
spam(CNN)
With 24 million small businesses in the US alone, that's way too many
apples.

I wonder how products like this will figure into the mix.

http://videogames.yahoo.com/feature/new-tech-could-make-consoles-obsolete/1299562

Hello,
The way this is implemented on this side of the pond is: the responsibility for bandwidth resides on the broadband operator side. The content providers tend to peer with the broadband networks so that there are no bottlenecks on a third party (transit) network.
Of course you need very active and competitive broadband markets for this model to work. Here we've been blessed with such a market and already have plethora of third party VOD offerings.

Seeing the state of IP rights across the world the streams are going to be very country specific and will not be available through international transits (eg.: all the actual video offerings in the US that we do not have access to for tv series etc..)

Best regards,
Michel Moriniaux

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Regarding OnLive, the short answer would appear to be that it's like
streaming video, but more latency-critical.