Make Streaming Cost Predictable
Why CFOs Should Consider Private Edge Infrastructure for Video Delivery Over Public CDNs
Make Streaming Cost Predictable
Why CFOs Should Consider Private Edge Infrastructure for Video Delivery Over Public CDNs
Make Streaming Cost Predictable
Why CFOs Should Consider Private Edge Infrastructure for Video Delivery Over Public CDNs
Make Streaming Cost Predictable
Why CFOs Should Consider Private Edge Infrastructure for Video Delivery Over Public CDNs
In the world of video streaming, delivering a seamless, high-quality experience to viewers is paramount
Whether it’s for live sports events, on-demand content, or 24/7 broadcasts. For broadcasters and OTT platforms, this means having a reliable and cost-efficient video delivery infrastructure. In the last few years, while traditional public/shared CDNs are still used for video streaming, many organizations adopted private edge infrastructures achieving greater cost predictability and control over quality and scalability. The best CFOs in the field of content streaming succeeded in controlling costs while supporting growth, thanks to their understanding of the financial implications of these two options. Let’s dive into why private edge infrastructure might be the smarter choice compared to public CDNs, particularly from a cost predictability standpoint.
In the world of video streaming, delivering a seamless, high-quality experience to viewers is paramount
Whether it’s for live sports events, on-demand content, or 24/7 broadcasts. For broadcasters and OTT platforms, this means having a reliable and cost-efficient video delivery infrastructure. In the last few years, while traditional public/shared CDNs are still used for video streaming, many organizations adopted private edge infrastructures achieving greater cost predictability and control over quality and scalability. The best CFOs in the field of content streaming succeeded in controlling costs while supporting growth, thanks to their understanding of the financial implications of these two options. Let’s dive into why private edge infrastructure might be the smarter choice compared to public CDNs, particularly from a cost predictability standpoint.
In the world of video streaming, delivering a seamless, high-quality experience to viewers is paramount
Whether it’s for live sports events, on-demand content, or 24/7 broadcasts. For broadcasters and OTT platforms, this means having a reliable and cost-efficient video delivery infrastructure. In the last few years, while traditional public/shared CDNs are still used for video streaming, many organizations adopted private edge infrastructures achieving greater cost predictability and control over quality and scalability. The best CFOs in the field of content streaming succeeded in controlling costs while supporting growth, thanks to their understanding of the financial implications of these two options. Let’s dive into why private edge infrastructure might be the smarter choice compared to public CDNs, particularly from a cost predictability standpoint.
In the world of video streaming, delivering a seamless, high-quality experience to viewers is paramount
Whether it’s for live sports events, on-demand content, or 24/7 broadcasts. For broadcasters and OTT platforms, this means having a reliable and cost-efficient video delivery infrastructure. In the last few years, while traditional public/shared CDNs are still used for video streaming, many organizations adopted private edge infrastructures achieving greater cost predictability and control over quality and scalability. The best CFOs in the field of content streaming succeeded in controlling costs while supporting growth, thanks to their understanding of the financial implications of these two options. Let’s dive into why private edge infrastructure might be the smarter choice compared to public CDNs, particularly from a cost predictability standpoint.
The Challenge with Public CDNs: Unpredictable Costs of Success
The Challenge with Public CDNs: Unpredictable Costs of Success
The Challenge with Public CDNs: Unpredictable Costs of Success
Public CDNs operate primarily on a volume-based pricing model, where costs are tied to the amount of data delivered to viewers. While this offers flexibility for smaller or fluctuating traffic, it also means that costs can skyrocket during periods of peak demand.
For example, consider a broadcaster or OTT platform delivering 10 PetaBytes (1 PB = 1,000 TB) of data for a typical week. At a typical CDN pricing rate of $1,000 per PB, this equates to $10,000/week in delivery costs. All things considered – like production costs, delivery, advertising revenue – the P&L of that week will indicate a certain profit that the CFO includes in the forecast.
Of course, prices are negotiated, and your current volume-based price may differ a lot from the examples. CFOs want to make plans about future expenses, for this reason we’re focusing on the variability of streaming costs when content is more successful than expected.
Now, imagine a 50% spike in traffic during a live event or the release of popular VOD content, increasing the data transfer of that week to 15 PB. This surge would increase the CDN bill to $15,000/wk. In this scenario, a sudden increase in viewers causes a significant jump in costs, which could catch CFOs off guard, especially if multiple events like this occur within a short period. We’ve seen wonderful weeks with soccer games and reality shows erupting in social media and disrupting CFO forecasts by more than that.
For CFOs trying to forecast budgets and maintain financial control, these sudden cost fluctuations can be problematic. While public CDNs offer flexibility, they lack cost predictability, especially during traffic spikes.
Public CDNs operate primarily on a volume-based pricing model, where costs are tied to the amount of data delivered to viewers. While this offers flexibility for smaller or fluctuating traffic, it also means that costs can skyrocket during periods of peak demand.
For example, consider a broadcaster or OTT platform delivering 10 PetaBytes (1 PB = 1,000 TB) of data for a typical week. At a typical CDN pricing rate of $1,000 per PB, this equates to $10,000/week in delivery costs. All things considered – like production costs, delivery, advertising revenue – the P&L of that week will indicate a certain profit that the CFO includes in the forecast.
Of course, prices are negotiated, and your current volume-based price may differ a lot from the examples. CFOs want to make plans about future expenses, for this reason we’re focusing on the variability of streaming costs when content is more successful than expected.
Now, imagine a 50% spike in traffic during a live event or the release of popular VOD content, increasing the data transfer of that week to 15 PB. This surge would increase the CDN bill to $15,000/wk. In this scenario, a sudden increase in viewers causes a significant jump in costs, which could catch CFOs off guard, especially if multiple events like this occur within a short period. We’ve seen wonderful weeks with soccer games and reality shows erupting in social media and disrupting CFO forecasts by more than that.
For CFOs trying to forecast budgets and maintain financial control, these sudden cost fluctuations can be problematic. While public CDNs offer flexibility, they lack cost predictability, especially during traffic spikes.
Public CDNs operate primarily on a volume-based pricing model, where costs are tied to the amount of data delivered to viewers. While this offers flexibility for smaller or fluctuating traffic, it also means that costs can skyrocket during periods of peak demand.
For example, consider a broadcaster or OTT platform delivering 10 PetaBytes (1 PB = 1,000 TB) of data for a typical week. At a typical CDN pricing rate of $1,000 per PB, this equates to $10,000/week in delivery costs. All things considered – like production costs, delivery, advertising revenue – the P&L of that week will indicate a certain profit that the CFO includes in the forecast.
Of course, prices are negotiated, and your current volume-based price may differ a lot from the examples. CFOs want to make plans about future expenses, for this reason we’re focusing on the variability of streaming costs when content is more successful than expected.
Now, imagine a 50% spike in traffic during a live event or the release of popular VOD content, increasing the data transfer of that week to 15 PB. This surge would increase the CDN bill to $15,000/wk. In this scenario, a sudden increase in viewers causes a significant jump in costs, which could catch CFOs off guard, especially if multiple events like this occur within a short period. We’ve seen wonderful weeks with soccer games and reality shows erupting in social media and disrupting CFO forecasts by more than that.
For CFOs trying to forecast budgets and maintain financial control, these sudden cost fluctuations can be problematic. While public CDNs offer flexibility, they lack cost predictability, especially during traffic spikes.
Winners are going Private: A Predictable and Scalable Alternative
In contrast, a private edge infrastructure offers capacity-based pricing, which gives broadcasters and OTT platforms stable costs for a set amount of delivery capacity. Instead of paying for data transferred, organizations pay for a pre-determined amount of capacity, which can handle fluctuations in traffic without significantly increasing costs. Delivery capacity is expressed as a bitrate such as Gigabits or Terabits per second, abbreviated as Gbps and Tbps. To translate capacity into practical terms, imagine a single video stream with an average bitrate of 5 Mbps (Megabits per second). One Gbps of delivery capacity (1 Gbps = 1,000 Mbps) can serve 1,000/5 = 200 viewers streaming at a bitrate of 5 Mbps.
Winners are going Private: A Predictable and Scalable Alternative
In contrast, a private edge infrastructure offers capacity-based pricing, which gives broadcasters and OTT platforms stable costs for a set amount of delivery capacity. Instead of paying for data transferred, organizations pay for a pre-determined amount of capacity, which can handle fluctuations in traffic without significantly increasing costs. Delivery capacity is expressed as a bitrate such as Gigabits or Terabits per second, abbreviated as Gbps and Tbps. To translate capacity into practical terms, imagine a single video stream with an average bitrate of 5 Mbps (Megabits per second). One Gbps of delivery capacity (1 Gbps = 1,000 Mbps) can serve 1,000/5 = 200 viewers streaming at a bitrate of 5 Mbps.
Winners are going Private: A Predictable and Scalable Alternative
In contrast, a private edge infrastructure offers capacity-based pricing, which gives broadcasters and OTT platforms stable costs for a set amount of delivery capacity. Instead of paying for data transferred, organizations pay for a pre-determined amount of capacity, which can handle fluctuations in traffic without significantly increasing costs. Delivery capacity is expressed as a bitrate such as Gigabits or Terabits per second, abbreviated as Gbps and Tbps. To translate capacity into practical terms, imagine a single video stream with an average bitrate of 5 Mbps (Megabits per second). One Gbps of delivery capacity (1 Gbps = 1,000 Mbps) can serve 1,000/5 = 200 viewers streaming at a bitrate of 5 Mbps.
Winners are going Private: A Predictable and Scalable Alternative
In contrast, a private edge infrastructure offers capacity-based pricing, which gives broadcasters and OTT platforms stable costs for a set amount of delivery capacity. Instead of paying for data transferred, organizations pay for a pre-determined amount of capacity, which can handle fluctuations in traffic without significantly increasing costs. Delivery capacity is expressed as a bitrate such as Gigabits or Terabits per second, abbreviated as Gbps and Tbps. To translate capacity into practical terms, imagine a single video stream with an average bitrate of 5 Mbps (Megabits per second). One Gbps of delivery capacity (1 Gbps = 1,000 Mbps) can serve 1,000/5 = 200 viewers streaming at a bitrate of 5 Mbps.
Optimizing Costs and Capacity Management Through Private Edge Infrastructure and Capacity Marketplaces
Optimizing Costs and Capacity Management Through Private Edge Infrastructure and Capacity Marketplaces
Optimizing Costs and Capacity Management Through Private Edge Infrastructure and Capacity Marketplaces
If you serve a big audience only in certain days of the week or month, you may think you’re paying for capacity you don’t use. When you don’t need that capacity, you may rent it out to other operators through the capacity marketplace. Suddenly, the delivery infrastructure becomes a profit center, offsetting the cost of having your own dedicated capacity.
Let’s take the same scenario: a broadcaster or OTT platform delivering 10 PB of data per week. This time, with a private edge infrastructure, the company pays a flat rate of $10,000/week to cover this capacity. Whether the platform delivers 10 or 15 PB due to traffic spikes, the cost remains predictable.
When you have private edge capacity, you can leverage the fact that traffic spikes are very limited in time compared to the whole week. Spikes require additional capacity for a short time and the cost to serve such overflow demand with volume pricing is a small fraction compared to the total cost. Containing these fluctuations is the real goal of financial planning, with a good control on costs and great support for quality and growth.
The data about such fluctuations contain precious information for planning the increase in capacity, giving the CFO and the operations team the right time to plan and adjust.
Overview
Overview
Overview
Why CFOs Should Care About Private Edge Infrastructure
Why CFOs Should Care About Private Edge Infrastructure
Why CFOs Should Care About Private Edge Infrastructure
From a financial standpoint, the benefits of private edge infrastructure are clear:
From a financial standpoint, the benefits of private edge infrastructure are clear:
From a financial standpoint, the benefits of private edge infrastructure are clear:
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Cost Predictability:
Cost Predictability:
With a capacity-based pricing model, private edge infrastructure offers predictable costs. This makes it easier for CFOs to plan and budget without worrying about sudden cost surges during peak traffic periods. In contrast, public CDNs’ pay-per-GB model can result in unpredictable, ballooning expenses when usage numbers spike.
With a capacity-based pricing model, private edge infrastructure offers predictable costs. This makes it easier for CFOs to plan and budget without worrying about sudden cost surges during peak traffic periods. In contrast, public CDNs’ pay-per-GB model can result in unpredictable, ballooning expenses when usage numbers spike.
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Scalability and Flexibility
Scalability and Flexibility
While public CDNs allow for scalability, it comes at a price—literally. Costs rise significantly as data volumes increase. With private edge infrastructure, scaling up is far more cost-efficient. CFOs can plan for growth with flat-rate pricing for capacity, knowing they won’t be penalized with exponentially rising costs.
While public CDNs allow for scalability, it comes at a price—literally. Costs rise significantly as data volumes increase. With private edge infrastructure, scaling up is far more cost-efficient. CFOs can plan for growth with flat-rate pricing for capacity, knowing they won’t be penalized with exponentially rising costs.
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Long-Term Cost Efficiency
Long-Term Cost Efficiency
For broadcasters or OTT platforms with high and consistent traffic, the higher upfront investment in a private edge infrastructure pays off in the long run. Costs stay stable as traffic grows, offering better ROI compared to the unpredictable costs of public CDNs.
For broadcasters or OTT platforms with high and consistent traffic, the higher upfront investment in a private edge infrastructure pays off in the long run. Costs stay stable as traffic grows, offering better ROI compared to the unpredictable costs of public CDNs.
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Control and Customization
Control and Customization
A private edge solution gives you complete control over your delivery infrastructure, enabling you to optimize traffic flows, routing, and performance based on your specific needs. For CFOs, this means more control over costs and fewer surprises in the budget.
A private edge solution gives you complete control over your delivery infrastructure, enabling you to optimize traffic flows, routing, and performance based on your specific needs. For CFOs, this means more control over costs and fewer surprises in the budget.
Conclusion: Private Edge is for Cost-Conscious CFOs
Conclusion: Private Edge is for Cost-Conscious CFOs
Conclusion: Private Edge is for Cost-Conscious CFOs
In the rapidly growing world of video streaming, choosing the right infrastructure is essential—not just for performance, but for cost management as well. While public CDNs like Akamai, Fastly, and CloudFront provide flexibility, they come with unpredictable costs that can make it difficult for CFOs to plan and budget accurately.
On the other hand, private edge infrastructure offers cost predictability, scalability, and long-term cost efficiency, making it a more financially sound choice for broadcasters and OTT platforms looking to control expenses while maintaining high-quality streaming experiences.
For CFOs tasked with managing the financial health of their organization, investing in a private edge solution provides the stability and control to handle today’s growing streaming demands—without the financial surprises that come with public CDNs.
Are you interested in making a cost simulation for your traffic patterns?Book a meeting with an expert.
In the rapidly growing world of video streaming, choosing the right infrastructure is essential—not just for performance, but for cost management as well. While public CDNs like Akamai, Fastly, and CloudFront provide flexibility, they come with unpredictable costs that can make it difficult for CFOs to plan and budget accurately.
On the other hand, private edge infrastructure offers cost predictability, scalability, and long-term cost efficiency, making it a more financially sound choice for broadcasters and OTT platforms looking to control expenses while maintaining high-quality streaming experiences.
For CFOs tasked with managing the financial health of their organization, investing in a private edge solution provides the stability and control to handle today’s growing streaming demands—without the financial surprises that come with public CDNs.
Are you interested in making a cost simulation for your traffic patterns?Book a meeting with an expert.
In the rapidly growing world of video streaming, choosing the right infrastructure is essential—not just for performance, but for cost management as well. While public CDNs like Akamai, Fastly, and CloudFront provide flexibility, they come with unpredictable costs that can make it difficult for CFOs to plan and budget accurately.
On the other hand, private edge infrastructure offers cost predictability, scalability, and long-term cost efficiency, making it a more financially sound choice for broadcasters and OTT platforms looking to control expenses while maintaining high-quality streaming experiences.
For CFOs tasked with managing the financial health of their organization, investing in a private edge solution provides the stability and control to handle today’s growing streaming demands—without the financial surprises that come with public CDNs.
Are you interested in making a cost simulation for your traffic patterns?Book a meeting with an expert.
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Discover how MainStreaming help businesses achieve seamless and scalable streaming experiences.
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Unlocking Success with MainStreaming
Discover how MainStreaming help businesses achieve seamless and scalable streaming experiences.