Peer-to-Peer Streaming Finds Friends
Going after the traditional CDN companies seems like a good proposition. Companies like Chaincast, CenterSpan and Kontiki are all using this approach, which allows companies to start their own delivery network without the expense and hardware of building out nodes all around the world. Peer-to-peer CDNs are a dynamic way to generate nodes while an event is underway — much like an on-demand CDN service. As viewers tune into a webcast, they must download a short plug-in, which then distributes it to other viewers.
For now, ChainCast only does live streaming, which Rozenfeld claims is the "hardest thing to do." All of the streaming stuff that generates money is mostly related to live streaming." Still, he said ChainCast is working on an on-demand version of its system. CenterSpan offers both streaming and downloadable peer systems, but does not offer a live version.
Another difference is that ChainCast is providing its peer-to-peer system as a managed service, not as a technology provider like CenterSpan. Although Rozenfeld said ChainCast already has some customers (and revenue), he said they weren't ready to announce anything yet.
Kontiki (www.kontiki.com), meanwhile, announced a beta of its "Kontiki Delivery Network," which lets users view and serve content. It uses more of a reservation system, where viewers can schedule the delivery of video and reserve upcoming releases.
"Our vision is that Kontiki will become a mainstream network application that users will tap into every day. Whenever they are online, there will be three network windows open on their PC's: an Internet browser, an e-mail application and the Kontiki Delivery Network for their digital media,'' said Mike Homer, Kontiki's chairman and CEO.
Still, traditional CDNs might have nothing to fear. The primary obstacles to the P2P systems include end user's bandwidth and the introduction of new content. Without content, the P2P networks are dead in the water. Will content owners flock to this new distribution method? If costs are low enough, these P2P streaming networks may win over a few content providers.
Lowering the Costs
According to CenterSpan's Web site, using the C-star P2P network is "1/9th the cost of streaming and 1/3rd the cost of central server-based systems in delivering digital content." Unfortunately, CenterSpan doesn't have a beta available for testing. "It's running in the lab," said Hudson who wouldn't say when it would be released.
Homer said that Kontiki lowers costs one-third that of traditional networks. Kontiki uses RealNetworks, Windows Media Player, QuickTime and others, unlike competitors Allcast and CenterSpan, which use Windows Media.
"Present streaming models bleed cash when you stream," said Hudson. "The more popular the content the [faster] you go out of business." With CenterSpan, he said, "the more popular the content, the cheaper it becomes to host it."