After 18 years it’s time to Say Goodbye D*

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When you get to companies the size of DirecT&T/Warner, it's sadly not all that uncommon for senior management to get out of sync with the technical capabilities of their organization. I think it's easier to sell that as being the future when we can stop being excited about "record breaking" streaming numbers of 2 million unique viewers.

Fox set a streaming record during the World Cup on Monday

The really important part is the costs scale linearly. 100 streams require 100x the bandwidth and server capacity of 1 stream. Bandwidth overall is getting cheaper, but it takes expensive compute with tons of memory and SSD for caching to be able to serve up rate-adaptive HLS streams effectively. That's why almost all the players (Sling, Hulu, FOX, DirecTV, Playstation Vue, Philo, etc) are all outsourcing their CDN infrastructure to Akamai, Level(3), and Fastly. As of right now, Netflix remains the only large mainstream provider (ie, not Pornhub) who owns and operates its own CDN infrastructure for purposes of single-tenant video distribution.

Bandwidth costs do not scale linearly, especially when you are talking about CDNs. The more bandwidth you push across Akamai, etc., the less it costs you per GB, TB, etc. If your CDN (or backbone provider for that matter) is charging you the same rate for 100TB per month as they are for 100PB per month, you're doing it very wrong.

Also, Amazon has their own CDN too.
 
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