Velocix. Revolutionizing Digital Delivery.

Velocix to Power the Video Web Revolution with the Launch of Velocix Metro

Velocix Metro corrects Internet Economy 'fault-lines' that currently exist between traditional Content Delivery Network (CDN) providers, Internet Service Providers (ISPs) and On-Line Video Broadcasters

Cambridge, UK - December 10, 2008

Velocix™, provider of a leading worldwide Digital Asset Delivery Network, today announced a next generation video delivery solution that corrects 'fault-lines' that currently exist within the Internet economy. The introduction of Velocix Metro makes the Video Web of the future possible today with radical improvements in quality of service and a dramatic reduction in cost of delivery.

Exponential growth in Internet traffic levels, predominantly driven by consumer demand for video, has exposed fundamental disconnects in the value chain for web video delivery. Traditional CDN providers charge video broadcasters for premium delivery services but ignore the fundamental role that ISPs play in the end-to-end delivery process. Rather than including ISPs in the value chain, CDN providers simply pump video traffic into their networks, leaving the ISPs to bear the cost of distribution on to their subscribers.

"For content owners and ISPs the web video debate is really an economic question - if the cost of delivery can be contained, the question loses its bite," said Ben Keen, Chief Analyst at Screen Digest. "It's not the Internet that's likely to 'break' but rather the current ISP business model that will prove difficult to sustain. To 'tame' this issue, content owners and CDNs must respect the ISPs’ position and work together to ensure that costs don’t become prohibitive. Velocix Metro is a great example of a promising approach and technology to facilitate this collaboration."

"Traditional CDN providers promising on-line video broadcasters high quality delivery and charging premium rates are the 'Emperors New Clothes' as they don't have the end-to-end control over the delivery system," said John Dillon, Chief Marketing Officer at Velocix. "CDN providers distribute video content to the 'North-side' of ISP networks and then simply throw it over the wall and rely on their goodwill to deliver at the required bit-rate and quality, to their subscribers. The raging debate of today is how long ISPs will be able to maintain the required delivery performance levels for high quality video as traffic volumes increase?"

Velocix has been working with major ISPs, Broadcasters and Content Owners to provide a solution to this issue. Velocix Metro is a new deployment alternative for the Velocix Digital Asset Delivery Network, adapted and optimized specifically for operation within an ISP network domain. Velocix Metro ISP deployments deliver video from Velocix Metro nodes installed and operated from within ISP networks, close to the consumer. This significantly reduces the ISP’s network cost burden, removing pressure to manage down its network overheads. ISPs are therefore able to provide smooth passage to their subscribers with improved quality video streams and downloads delivered.

Velocix Metro enabled ISPs receive a revenue share based on traffic delivered via their networks from Velocix. In addition, they gain access to their own low cost Content Delivery Network capabilities, enabling the launch of new rich media services to their subscriber base. Velocix Metro ISP deployments are also interconnected via the global Velocix Digital Asset Delivery Network, resulting in a federation of networks that provides groundbreaking video delivery performance and economics, together with end-to-end management and control over the entire video delivery process.

"Velocix Metro provides an opportunity for content owners/publishers and ISPs address the downstream cost issues created by the explosion of online video," said Melanie Posey, research director at IDC. "However, CDN technology is only one part of the solution. Mutually beneficial commercial arrangements and a willingness to collaborate are the key elements needed to achieve solutions that balance the interests of all parties in the Internet video supply chain."