1. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks Trends and Statistics in Peer-to-Peer Presentation by David Ferguson VP Engineering, CacheLogic This work is licensed under a Creative Commons Attribution-NonCommercial 2.0 England & Wales License.Creative Commons Attribution-NonCommercial 2.0 England & Wales License http://creativecommons.org/licenses/by-nc/2.0/uk/

2. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Introduction to CacheLogic  Technology company providing intelligent network solutions to the ISP/Telecoms sector  CacheLogic P2P Management Solution  Protocol-based P2P recognition and on-network caching  CacheLogic Network Intelligence  Gigabit speed real-time protocol analysis  Industry leading knowledge and expertise  Streamsight Monitoring Network  Using unique layer 7 DPI  Providing previously unseen Internet traffic analysis  Provide insight and analysis to industry leading analyst groups and press  Strategic and Technology Advice  To leading media and broadcaster organisations Cacheswitch 320 Layer 7 DPI Analyser/Switch Cachepliance 4100 P2P Caching Appliance CacheLogic Provides Detailed Analysis

3. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks P2P in 2006

4. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Peer To Peer Today  On consumer broadband networks:  50-65% of downstream traffic is P2P  75-90% of Upstream Traffic is P2P  P2P usage is widespread and growing  figures taken from a single CacheLogic device:  2004 – 3M unique IP addresses in 30 days  2006 – 3M unique IP addresses in 8 days  On Average 33% of Internet users in OECD countries have downloaded files from P2P networks 1  Simultaneous users estimated at 10 million in October 2004. 1 1 Digital Broadband Content: Music- DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY P2P file sharing traffic is the single largest traffic type by volume on ISP networks and continues to grow

5. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer P2P file sharing is global but has regional variations

6. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Video is the primary content on P2P file sharing networks  Average P2P file sizes are constantly growing – driven largely by video  Majority of P2P traffic volume is generated by objects with an average size >1GB  In Asia, this figure is 2.5GB! Source: CacheLogic “P2P in 2005,” (9/05). Mix of file formats by volume of traffic generated over 4 main P2P networks: BitTorrent, eDonkey, FastTrack, and Gnutella. Weighted by volume of traffic on each network. Key File Formats

7. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Can P2P file sharing be stopped?  But … no impact on eDonkey traffic levels  Razorback2 was shut down on 21 st February

8. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer The landscape has changed quickly  Ted Cohen, senior VP of digital development and distribution at EMI Music, February 2005  “EMI Music is happy to be delivering its catalog of music to consumers via Peer Impact -- the first of what we hope will be many legitimized P2P services. This service will show that the legal exchange of copyrighted works and a good consumer experience can go hand-in- hand.’’  Warner Bros. Home Entertainment Group, January 30 2006  In2Movies Will Provide Fast, Secure and Legal P2P Delivery of High Quality Movies and TV Series From Warner Bros. as Well as Local Productions For Germany, Austria and German Speaking Switzerland  Dan Glickman President & CEO MPAA in late 2004  “We must stop these Internet thieves from illegally trading valuable copyrighted materials on-line. My message to illegal file swappers everywhere is plain and simple: You are stealing, it is wrong and you are not anonymous. In short, you can click, but you can’t hide.”  Dan Glickman President & CEO MPAA in mid 2005  “Peer-to-peer technology is here to stay,"..."What's more, the film industry will have to come up with a 'reasonable-cost, hassle-free way for people to download movies legally for it to continue to prosper."  P2Pnet.net News, August 1 2005  BitTorrent’s Bram Cohen says he’s in negotiations with Hollywood, characterizing the talks as “friendly'‘. BitTorrent is also in discussions with two studios he declined to identify.

9. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer The emergence of P2P in legitimate services

10. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Digital Rights Management (DRM)  Is DRM used today?  Today’s file sharing applications (e.g. BitTorrent, eDonkey) – Infrequently  Legitimate services (e.g. BBC IMP) - Yes  Why is DRM used?  To ensure revenue collection and manage the lifetime value of the cotent  To limit distribution and viewing in line with the rights of the provider  Dan Glickman, Motion Picture Association of America, February 2006 “Content owners use DRMs because it provides casual, honest users with guidelines for using and consuming content based on the usage rights that were acquired. Without the use of DRMs, honest consumers would have no guidelines and might eventually come to totally disregard copyright and therefore become a pirate, resulting in great harm to content creators. DRMs' primary role is not about keeping copyrighted content off P2P networks. DRMs support an orderly market for facilitating efficient economic transactions between content producers and content consumers.” http://news.bbc.co.uk/1/hi/entertainment/4691232.stm#7

11. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks Can the industry provide a scalable P2P platform for TV delivery?

12. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks Clients and Services

13. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Current and Potential P2P Services ServiceClientsProven Scalability* File Sharing ▪ TV: pre- and post- broadcast distribution, catch up TV ▪ Movie and drama distribution ▪ Software and games ▪ HDTV 1 million downloads in 60 hours, 7,500 peak concurrent downloads (Azureus) Live Streaming Audio ▪ Office/out-of-country radio listening ▪ New channels 1,882 concurrent listeners (Abacast) Live Streaming Video ▪ Event orientated – concerts, sports, news ▪ Out-of-territory broadcast (if rights permit) ? TV ▪ Complete replacement for DTT/DSAT/cable services including high availability and fast channel change  * Figures taken from presentations given at EBU P2P to Broadcasting Conference, February 2006

14. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks Networks The First Law of Peer-to-Peer Networks: “For every download, there is an equal and opposite upload”

15. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Internet Design  The Internet has been built on the premise of core to edge distribution  High Capacity Data Centres, Large Core, Asymmetric Small Edge  Cost and performance optimised by Peering and Private interconnects with content

16. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Broadband Access Network Design - DSL  ADSL and Cable modem were designed for asymmetric traffic  Web  VOD  ADSL  Download <8Mbps  Upload < 800kbps  11:1  ADSL2+  Download <24Mbps  Upload < 1Mbps  24:1  The asymmetry is increasing

17. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Size and Impact of P2P  On consumer broadband networks:  50-65% of downstream traffic is P2P  75-90% of Upstream Traffic is P2P  Downstream  Almost all P2P file sharing traffic is international (>90% in all but a few countries) and therefore expensive  Upstream  Because of P2P’s symmetry and the network’s asymmetry, all upstream capacity has been consumed  Upstream capacity is very expensive for cable and Wimax operators 50-65% 75-90%

18. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks P2P: ISPs vs Broadcasters?

19. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Comparing Streaming with Broadcast  The marginal cost of traditional Broadcast methods (TV, Radio etc..) are near zero  When broadcasting to one individual or 10,000 individuals the costs remain almost the same  The marginal cost is almost zero  This is not true with traditional Internet distribution  As content popularity increases, so do “broadcast” costs  Infrastructure burden can be very high (imagine 500,000 users all trying to download same movie in parallel)  The more successful you become online the more your costs go up  It is actually very cheap to unicast (stream or file transfer) small volumes over the Internet  Concentrations of high demand push costs up significantly  The marginal cost is not zero  There is therefore an incentive to find another way of distributing large volumes over the Internet Streaming or sending video files over the Internet in a traditional way does not compare favourably with terrestrial or satellite broadcasting costs.

20. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer ISP Reaction and End User Experience  P2P creates the ultimate dilemma for ISP  Drives end user adoption of broadband and provides a source rich media  Utilises networks in the worst possible way from an economic perspective  Dis-intermediates the ISP from the revenue stream Network Financial Impacts are massive  Loss of Revenues at the Core  Migration of content from hosted facilities  Loss of transport revenues on backbone  Increase in costs at the Edge  Edge networks designed as Asymmetric (ADSL, Cable)  High speed Download  All end users now become hosts  Peering with Content no longer an option  P2P protocols are not geographically aware so an ISPs biggest potential peer unlikely to be in same country/region  A high % of traffic will continue to use transit and cannot be mitigated by peering  Cost for popular content can no longer be controlled

21. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Broadcaster and ISP Economics  Broadcaster  Streaming costs rise with number of simultaneous streams  P2P costs not proportional to data volumes  ISP  P2P costs more to deliver than Streaming because scarce upstream capacity is consumed  But… ISPs need new services that will increase broadband usage

22. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer ISP Solutions for P2P SolutionManage Impact on Network Mitigate Cost Maintain User Experience Shaping ▪ Reduce the levels of P2P in the network ▪ Unpopular with users ▪ Increases download times  Usage Based Billing  Least Cost Routing ▪ Requires a lower cost route – but uploading from other subscribers is often more expensive than downloading  Caching

23. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Caching SolutionManage Impact on Network Mitigate CostMaintain User Experience Enhance User Experience Caching  With P2P being used for the authorised and legitimate distribution of content, only one of the possible solutions available to the ISP makes sense – caching  Not only does it reduce ISP costs without impacting the end-user experience  It can then be used to accelerate content delivery  Allows the ISP to differentiate their service  Provides better QOS to the consumer (which is good for broadcaster and ISP)

24. CacheLogic Advanced Solutions for P2P Networks Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer Conclusions  Technology  The industry is working on solutions to make maximum possible use of all available capacity to delivery streaming video over P2P  Tests of P2P scalability to date look good, but no-one has yet shown 10,000 or 100,000 or 1,000,000 concurrent downloads  Quality of client software is improving, reducing installation and hardware/software compatability issues  Networks  ISPs are a necessary partner in the supply of P2P services  Upstream capacity is a scarce resource and is not going to be addressed in the short term in Europe or the Americas.  While P2P may look cheap to broadcasters, it is expensive to ISPs and they must be kept on board  Moves towards usage based billing will limit the growth of video over Internet  Caching provides a method for the ISP to manage costs and improve user experience  Rights  Acquiring rights to distribute content over P2P is complex for even the biggest broadcasters and DRM is a key part of ensuring the broadcaster complies with those rights  Management and Reporting  Production P2P delivery solutions have to be able to provide viewing figures  Opportunities  P2P opens up broadcasting to everyone as the cost of distribution is shifted to the receiver (user and ISP)  P2P may provide the terrestrial broadcasters with a method of distributing HD content

25. Workshop on Technical and legal aspects of peer-to-peer television | Trends and Statistics in Peer-to-Peer CacheLogic Advanced Solutions for P2P Networks Any Questions?