P2P, CDNs, and Hybrid Networks: The Economics of Internet Video Distribution

22 Pages Posted: 13 May 2011

See all articles by Imsook Ha

Imsook Ha

Korea Electrotechnology Research Institute

Steven S. Wildman

Quello Center; Michigan State University; University of Colorado at Boulder

Johannes M. Bauer

Michigan State University-Department of Media and Information

Date Written: December 31, 2010

Abstract

One of the challenges of developing a cost effective distribution system that supports the proliferation of video streams is allocating the video files optimally among various means of media storage. In this paper we develop simple mathematical representations of the cost characteristics of two internet video distribution systems: Content Delivery Networks (CDNs) and Peer-to-Peer (P2P) networks and identify conditions under which each or a blend of the two proves most cost-effective. Our analysis shows that in many cases a hybrid system is likely to have lower costs than either a pure CDN or a pure P2P network. We identify the personal computers that form the backbones of P2P networks as a largely untapped network resource and suggest that potentially very large economic gains might be realized if policy makers can develop policies that effectively address some of the security and transaction cost problems that discourage PC owners from contributing capacity to P2P networks.

Keywords: Internet video distribution, Network architecture, Internet policy

JEL Classification: L1, L82

Suggested Citation

Ha, Imsook and Wildman, Steven S. and Bauer, Johannes M., P2P, CDNs, and Hybrid Networks: The Economics of Internet Video Distribution (December 31, 2010). International Telecommunications Policy Review, Vol. 17, No. 4, 2010. Available at SSRN: https://ssrn.com/abstract=1837361

Imsook Ha (Contact Author)

Korea Electrotechnology Research Institute ( email )

Gyeongsangnam-do
Korea, Republic of (South Korea)

Steven S. Wildman

Quello Center ( email )

409 Communication Arts & Sciences Building
East Lansing, MI 48824-1212
United States
517-432-8004 (Phone)

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

University of Colorado at Boulder ( email )

1070 Edinboro Drive
Boulder, CO 80309
United States

Johannes M. Bauer

Michigan State University-Department of Media and Information ( email )

409 Communication Arts Building
East Lansing, MI 48824-1212
United States
517-355-8372 (Phone)
517-355-1292 (Fax)

HOME PAGE: http://www.msu.edu/~bauerj

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