## How peers reduce broadcasting costs (part 2)

### Quantitative analysis

Let’s consider a 30-minute long movie encoded at 800kbps, we will estimate the broadband necessary to provide this stream to 50 concurrent players, using a CDN solution then RayV’s technology.

#### Upload requests with a classical a CDN

the formula is quite straightforward:
let:
d be the duration of the movie (in seconds)
Nv the number of concurrent players playing this stream
– MR the encoded movie rate (in kbps)

Applied to our example, we get:

(where factor 1/8000 converts kb into MB)

Upload requests with with RayV Cloud TV

The upload cost supported by the RayV grid can be split into two:
– on the one hand, the cost ofr seeding helping peers with partial chunks of the movie. We’ll call it UL[seeding]
– on the other hand the cost of direct players’ requests to edge nodes. We’ll call it UL[players]

We consider a scenario where we have enough helping peers available to provide the whole data to players (condition of completion). The player will request data from edge node only during a build-up phase while they populate their donors list.
Under these assumptions, we can determine UL[seeding] and UL[players] as follows:

– let ur be the average capacity of helping peers
– and 1/Sz the fraction of data received by each helping peer at seeding stage.

To satisfy the condition of completion, the minimal number of helping peers (Nh) required is:

As each helping peers receives 1/Sz of the movie at the seeding stage, we can derive:

On the other hand, considering the condition of completion, let’s т be the build- up time requested by a peer to establish a connection with the Sz helpingpeers requested to be fully autonomous from edge nodes.
We have:

Together, the upload formula using RayV’s Cloud OTT under the completion assumption is:

For the same example as above (50 viewers watching a 30 mins long movie at 800kbps), let’s consider that:
– we seed each helping peer with 1/Sz = 1/50th of the data;
– that the build-up time for a player to establish connections with helping peers is т = 30 seconds;
– and that each helping peer has an upload capacity of ur = 500 kbps.

Then the minimal total upload requested to serve these 50 (concurrent) players using RayV’s Cloud OTT is :

Compared to the upload required by a classical CDN (9000MB), it represents savings of 95% of the bandwidth!

And how does it look like?

This model has been successfully tested and validated on our grid for movie rates ranging from 300kbps to 2200kbps.
As an illustration, this is how players download is split between edge nodes and helping peers along an experiment where 150 helping peers are seeded, then 50 players join the stream at the time:

Stay Tuned for our next post where we’ll apply these results to a quite hot case study!

## How peers reduce broadcasting costs (part 1)

As part of our commitment to provide a highly reliable and efficient VOD turnkey solution, RayV has developed a breakthrough technology that drastically reduces server upload and hardware costs of VOD broadcasting.

Below are a few insights on how we do it.

### RayV Cloud TV versus the classical CDN solution

In a classical CDN solution, a player who requests to watch a stream will entirely download it from the CDN servers, and even though the data may be cached on local relays, the whole upstream load is still impacted to the broadcasting entity.

RayV’s Cloud OTT reduces server upload costs and hardware resources by relying on data shared between end users – the peers of our grid.

#### Using helping peers to reduce broadcasting costs

Our solution is based on “helping peers” – i.e. RayV clients running in idle mode – to which we send an encrypted fraction of a given VOD stream. This seeding stage can be undertaken for example during off-peak time thus reducing server load at peak hours.

Notice also that these helping peers can’t do anything with the data seeded except provide it to an active client watching this stream and requesting data from donor peers, no DRM issues here. Now when a player connects to our services and requests to watch a title, we provide it with a list of edge nodes – RayV’s own CDN relays- and a list of helping peers to connect to. The player first connects to the edge node and requests the data required to start watching.

In the meantime, it also opens connections to helping peers and requests them to send the chunks they may have in this stream. If enough helping peers are available in the grid, players don’t even need to request anything from edge nodes after a few seconds, as all the data is now provided by peers.

Stay tuned for part 2!

## This Week In Review

Numerous articles both for and against the new Surface and Windows 8, an amazing space jump, and clashing events: Google Vs. Microsoft

Stats, reports, trends and analyses

Devices & OS

Around the world

Telcos & Content Owners

Just for fun

## This Week In Review

It’s a small world… Rumors about the new iPad mini which has yet to launch and rumors about the the new Samsung mini which is due to launch today. Also news about RIM and the new Nexus.

Stats, reports, trends and analyses

Devices & OS

Around the world

Telcos & Content Owners

Just for fun

## Minister of Communications Moshe Kahlon visited our office.

Last week, Moshe Kahlon, Israel’s Minister of Communications, and senior ministry officials visited our office in Tel Aviv.

When it comes to TV, the Israeli market is not very competitive: it is in fact a duopoly (or even a monopoly as the market share of the cable company is over 50%) with one cable company (HOT) and one satellite company (YES).  Consumers also have the option to buy a set-top-box that enables them to see the 6 local channels for free (IDAN+). Mr. Kahlon is looking to increase the competition by allowing Telco companies to broadcast content over the Internet and this is where we come in.

Shlomi Cohen, our CEO and Omer Luzzatti our CTO and co-founder, did a demo of our solution. They showed the minister and his staff how we stream both live TV and VOD to different devices (smartphones, tablets, PCs, set-top-boxes etc). Mr. Kahlon looked rather impressed!

During the meeting Omer and Shlomi also explained our business model:  RayV charges a set-up fee and a per-user, per-month fee (and the more users, the lower the per-user fee) which means that Telco companies don’t need to make significant investment to enter the market. This and the fact that a set-up last typically last 8 weeks means that using our solution would level the playing field.

At the end of the meeting, Omer and Shlomi took the minister and his staff to our monitoring station where one of our monitors showed them the back-end of our system and explained a little about his role.

You can see more pictures on our Facebook page.

## Namaste India!

RayV is always looking to increase its presence around the world and so with this in mind we have appointed Avi Gutgold as our agent in India.

There are many reasons to target the Indian market: India is huge! In fact it is the second most populous country in the world. While it is still lagging behind most of the developed nations in terms of penetration (75% of the population has a mobile device, 65% of which are urban dwellers), according to IDC, India will enter the top 5 country markets for smartphone shipments by 2016.

To date, India has approximately 920 million mobile subscribers of which 10 – 15 millions have smartphones. However, this number is set to increase dramatically as the smartphone market share is forecast to grow to a substantial 9.3% by 2016.

”Demand for smartphones will also grow as urban and enterprise users mature in their handset preferences and usage. Consumers are growing accustomed to higher data usage and using handsets for entertainment and other content, instead of just as a communication device,” said G Rajeev, senior market analyst for mobile devices with IDC India.

Additionally, 3G networks and data plans are expected to be rolled out and several domestic vendors have launched low-cost smartphones so as to drive future demand.

There are quite a few mobile operators in India – 90% of which are privately owned – with Reliance and Vodafone having the biggest market shares (17% and 16% respectively).

The Indian market beckons, and we are looking forward to it!