Edgeware explores business case for building dedicated delivery infrastructures at IBC

At IBC2017, Edgeware will showcase its latest research into when content owners and online TV distributors should consider ceasing CDN rental and instead build their own delivery infrastructure.

“We understand that private TV CDNs aren’t the right approach for everyone but more and more giants in the content delivery industry are recognising that it’s the right option for them,” said Edgeware’s CEO, Joachim Roos. “We work with customers that have turned to private networks so they can take control of their content and deliver high-quality TV services while benefitting from a cost-effective solution.”

To demonstrate when a self-built solution is right for a content distributor, Edgeware commissioned Frost & Sullivan to create a whitepaper which lays out a set of criteria which helps operators decide if a self-built network is for them. ‘Building your own CDN for video delivery: Why, when, and how’ explains how many regular users a service needs to have, where those users need to be based and for how long they watch a service for as the basis for the answer to the build vs buy question. The Frost and Sullivan whitepaper states 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, said: “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 maximise delivery capacity.”

To back up the paper’s criteria, Edgeware has also built a business case tool based on real customer experience which shows the economic tipping point where building your own TV CDN becomes beneficial. This balances up the cost of equipment, software licenses, backhaul capacity, rack-space, power and operational staff vs the price of renting a CDN as a service.

“There are many different metrics that determine the business case for and against a CDN service,” said Edgeware;s chief marketing officer, Richard Brandon. “These culminate in a tipping point where content owners should deliver content through their own network. For TV operators who are serving audiences in close geographical areas and a have a growing number of viewers regularly tuning in, then a self-built TV CDN will pay for itself within months while also delivering services with no buffering delays or glitches.”

The trend towards self-built TV CDNs is reflected in Edgeware’s own business - after floating on the NASDAQ stock exchange in December 2016, the company posted an end-of-year annual increase in sales of 23.9%.

Edgeware will be showcasing its TV CDN technology on booth 14.F15 at IBC2017 which is held at RAI Amsterdam in Holland between 15 - 19 September 2017.