Broadcast News

Bookmark and Share

Three Reasons Why You Should Deploy A Hybrid CDN

News Image
By Ryan Nicometo, SVP Product and Marketing, Vecima Networks

The early years of OTT-TV have witnessed the rapid growth of CDNs. As we approach OTT as the norm, the ownership of the CDN-based delivery model starts to become all the more important to broadcasters. Who controls getting your content to your audience?
What about the economics? At what point should a broadcaster consider owning its own CDN? Enter the Hybrid CDN.

A Hybrid CDN uses a combination of public and private infrastructure. It’s a middle-ground between using a 100% outsourced CDN and having a fully owned-and-operated CDN.

Cost reduction
CDN costs for OTT delivery are increasing rapidly due to the huge growth in consumer video traffic. A Hybrid CDN provides a new way for broadcasters to achieve significant cost control for OTT delivery

Modeling the financial impact of a Hybrid CDN model is critical for defining a broadcaster's short- and long-term OTT strategy. In most models, the five-year cost saving for a broadcaster’s OTT service is well over €10m, and often significantly more. This large impact, even with a relatively small OTT audience, is achieved through the new economic paradigm of the private cache model.

By investing in private cache capacity instead of paying for Gigabytes of egress from a CDN service, broadcasters can achieve true economies of scale. Our models show that deploying a hybrid CDN results in a cost reduction of 30-50% over 3-5 years.

Customer experience
Arguably one of the most challenging issues of OTT delivery is that it uses a network environment that's outside of the broadcaster’s control. This 'black-box' model is proving to be a major concern to broadcasters who are struggling to deeply understand the customer experience of their most valuable viewers.

Hybrid CDNs give broadcasters a new way to achieve OTA-quality parity for OTT services and directly control the customer experience of the end-to-end OTT service. Service improvement is achieved by being able to control the end-to-end delivery service from content origination to content caching and session control. By managing the storage, transcoding, origin and cache, with a managed network connection in between, broadcasters can benefit from using CMAF, from packaging at the edge, from controlling what is cached where, and from directly managing the interaction between the consumer’s player and the cache to achieve lower latency and cross-device synchronisation.

Preparing for the future
According to Cisco, by 2021, CDNs will carry some 1,470,000 Petabytes (440 percent growth vs. 2016), representing 77 percent of total consumer video traffic. Video on demand (VOD) is currently the dominant form of consumption and represents 90% of the traffic. But live content is growing as audiences for large events switch to OTT with improved mobile viewing experiences. Live OTT viewership is expected to exceed OTA viewership by 2020. And according to Deutsche Bank, by 2021, CDN-based delivery will be cheaper than satellite-based delivery for 85% of 6,700 European TV channels (those with 250,000 or fewer viewers), based on expected reductions in CDN pricing and expected telco network improvements.

As consumer behaviours push the industry to move to OTT, and telco and mobile network improvements enable OTT services to grow, the economics of the industry are moving faster than predicted, and the time for broadcasters to take greater control of their economic destiny has arrived. A Hybrid CDN isn't a giant technological leap forwards for broadcasters, but a relatively simple operational model change that brings significant benefits with the right investment.
Solidmate Ltd Memory Card Hire London

Top Related Stories
Click here for the latest broadcast news stories.

Artel To Showcase SMART Media Delivery Platform At IBC 2019
Artel will feature solutions that simplify broadcasters' shift to hybrid IP/SDI and all-IP operations and address content providers' requirements for
Lake Districts Drone Service With Skylark
Skylark Aerial Photography is the Lake Districts Drone Service, when you look at the facts and figures for aerial films produced last year you soon re
CallMe Provides Broadcasters With Easy-To-Use Audio Over IP
CallMe is a cloud-based communications platform for audio codecs which handles all the complicated stuff and provides the user with a simple click-and
Video Progetti Completes OB7 For L'Opera Broadcast Video Service
Video Progetti has announced that OB7, the outside broadcast van it has designed and built for production company L'Opera Broadcast Video Service, wil
Vortex To Introduce Enhancements To Its CallMe Cloud Codec Service
Vortex is exhibiting at IBC in its usual spot in Hall 12 and is introducing ground-breaking enhancements to its CallMe Cloud Codec service and low-cos
Zylia Launches Mix & Master Service
Zylia has launched the ZYLIA Mix & Master service. The one-of-a-kind service helps musicians to get amazing spatial and binaural sound from sessions r
Telestream To Unveil Second OptiQ Live Service At IBC 2019
Telestream® (Booth 7.C16 & 7.C14), will introduce its second OptiQ live service at IBC 2019. OptiQ Monitor creates major efficiencies in capital and o
Broadcasters & Post Production Facilities Digitising Legacy Tape Formats
The first in a series of articles by Pat Horridge of VET Training covering the issues facing broadcasters and post houses needing to digitise legacy t
Broadcasters Sign Up For IABM Conference
IABM is to open its Annual International Business Conference to broadcasters and media organisations for a day later this year. The event takes place
NEP Australia Selects Tektronix To Monitor Hybrid IP/SDI
Tektronix has announced that NEP Australia has selected the firm as a key technology provider for the broadcaster's move to an IP-enabled production i
Utah Scientific Launches Hybrid Router
Utah Scientific has unveiled its new 400 Series 3 hybrid digital router. It has been designed to accommodate the next-generation SMPTE ST-2110 and SMP
Speedcast Confirms Joint Service Offering With In Aria! Networks
Speedcast has announced a joint service offering with In Aria! Networks, one of Europe's leading service providers in managed broadcast video contribu
Masstech To Exhibit Hybrid Cloud Storage And Workflow Solutions
Masstech is to exhibit its range of hybrid cloud storage and workflow solutions, plus two new releases: Clover, a turnkey content suite that bridges t
Edgeware Systems To Be Used To Scale OTT TV Service
A first-time order has been received by Edgeware from one of Europe's largest telecoms operators. The customer is set to use Edgeware's systems to sca
OTT Video-Delivery Solution For Sky Go Service Now Complete
Anevia and SKYmedia Corporation LLC has completed an OTT video-delivery solution for SKYmedia's new Sky GO service. Based in Ulaanbaatar, the SKYmedia