1. © Velocix 2009. All Rights Reserved.1 P2P and Content Distribution 2 nd Annual P2P Media Summit Las Vegas 7 January 2009 David Ferguson, Chief Architect

2. © Velocix 2009. All Rights Reserved.2 What is Velocix? Standard delivery mechanisms: HTTP Flash Streaming Windows Media Streaming Standard publishing mechanisms Customer self service portal Geographical restrictions, token authorisation, … 24x7 Support SLAs Object level control and real-time reporting Core P2P Network Bittorrent delivery Bandwidth Blending Optimal mix of P2P and Server bandwidth P2P+ Custom integration with 3 rd party P2P applications Velocix Metro Deep deployment for consumer video services A full service global CDN … with a twist Backed by leading UK technology investors 3i and Amadeus

3. © Velocix 2009. All Rights Reserved.3 Velocix … P2P applied to CDN

4. © Velocix 2009. All Rights Reserved.4 Combining CDN and P2P Technologies Velocix makes use of several technologies that were first widely used in P2P clients: Multi-source o Data is received from several sources simultaneously. o Provides increase throughput compared to single source o Adds resilience as reliance on single connection removed o Enables dynamic blending of bandwidth to minimise delivery costs o Copes with change in network conditions by altering sources dynamically Peer delivery o Data can be shared amongst users, as well as delivered from caches o Reduces overall delivery cost o Adds further resilience as number of sources increases Integrity checking o Errors are detected at the piece level and corrected Resumable downloads o As the file is broken into pieces the download is treated as a series of discrete transfers o If a download is interrupted it will resume from the last complete piece, rather than starting from the beginning These technologies are used to improve quality and reliability within the Velocix network and are available over appropriate delivery protocols.

5. © Velocix 2009. All Rights Reserved.5 How does Bandwidth Blending work? Lets start by comparing single source downloads vs P2P downloads Server – normally sent at required rate, but since it is served from a single server, it all needs to be served from a nearby server P2P – normally doesnt provide good enough speed

6. © Velocix 2009. All Rights Reserved.6 How does Bandwidth Blending work? P2P provides as much bandwidth as it can Expensive cache steps in smoothes off the transfer Higher cost cache steps in and supplies most of shortfall at other times Low cost cache steps in first and supplies most of shortfall most of the time The lower the target speed the cheaper the delivery

7. © Velocix 2009. All Rights Reserved.7 P2P+ Announced July 2008 Initiative for developers of commercial P2P media services and applications Velocix integration provides QOS on top of underlying P2P delivery Range of integration methods and consulting services Announced partners:

8. © Velocix 2009. All Rights Reserved.8 Velocix Metro TV video distribution is different to Web and P2P, requiring massive national bandwidth Announced December 2008 Recognises ISPs vital role in content delivery Provides ISPs and Broadcasters with a intelligent low- cost platform for delivery of Internet content Launch partners: Launch customers:

9. © Velocix 2009. All Rights Reserved.9 What does the future hold?

10. © Velocix 2009. All Rights Reserved.10 Time for a check up… In the UK, MOT test required every year when car reaches 3 years old How good were my predictions at the first P2P Media Summit in 2006?

11. CacheLogic Advanced Solutions for P2P Networks DCIA P2P Media Summit | P2P File Sharing - The Evolving Distribution Chain Peer-to-Peer Today In the last seven years P2P has grown to dominate Internet traffic More than 60% of consumer Internet traffic is P2P P2P saturates ISP networks Downstream: 50-65% Upstream: 70-80% More than 60% of P2P is video P2P files are massive Globally: >50% >1GB Asia: >50% >2.5GB

12. CacheLogic Advanced Solutions for P2P Networks DCIA P2P Media Summit | P2P File Sharing - The Evolving Distribution Chain Internet-Based Content Distribution is Evolving Commercial distribution of music over the Internet becomes mainstream By the beginning of 2005, UK online single sales overtook CD single sales(1) By the end of 2005, 20M tracks per week being bought online worldwide. And sales of MP3 players had overtaken that of CD players(2) US physical media sales fell by 8-10% on 2005, where as online sales grew by between 150- 200%(3) Commercial trials of Broadcast/DVD quality P2P video BBC iMP ntl Warner Bros Initial commercial P2P video trials AOL Sky 200520062007 Rollout of commercial P2P broadcast quality video services Consumer Produced Video Google Youtube Portable Video iTunes

13. © Velocix 2009. All Rights Reserved.13 What went wrong? P2P video distribution was dominating consumer Internet traffic But the transition to commercial delivery using P2P was complicated by: DRM falling out of favour stalled download market Client deployment concerns Flash plugin enables custom player UI without user permission Advertising funded free-to-use Web 2.0 Success of progressive download and streaming services o Youtube o Hulu, BBC iPlayer, etc. Mass market reluctance to wait for non-free content Lack of compelling content on P2P TV services Wholesale bandwidth costs dropped Wholesale digital video content pricing Influx of suppliers in traditional CDN space reduced delivery costs

14. © Velocix 2009. All Rights Reserved.14 So where does P2P fit in 2009? Delivery methods: P2P – most bytes transmitted by other clients – market limited by asymmetric broadband access (DOCSIS/DSL) Single Source – bytes transmitted from a single server typically HTTP or streaming – classic CDN Multi Source – bytes transmitted from a combination of servers and (optionally) clients) – hybrid CDN

15. © Velocix 2009. All Rights Reserved.15 P2P Content Delivery Future Current opportunity limited by Falling CDN pricing CDNs keeping with up traffic volumes Over supply in market DRM/CA replaced by streaming Indicators for future opportunity Symmetric broadband access Effective DRM/CA Adaptive codecs TV with integrated Internet High capacity flash storage Standardisation o P4P a good start o Need standardisation in the system architecture and inter-component communication

16. © Velocix 2009. All Rights Reserved.16 Whats the role of Velocix in all of this? Fully operational hybrid CDN service provider with long background in P2P We will provide content providers and ISPs with the best combination of technologies for quality cost-effective content distribution over the Internet Like other service providers in this space, Velocix has developed most technology in-house Just as we licence streaming servers, wed welcome more off-the-shelf components that have rich APIs We will play an active role in the standardisation process

17. © Velocix 2009. All Rights Reserved.17 Questions? David Ferguson, Chief Architect david@velocix.com +44 7870 275338 Copyright Statement Copyright © Velocix Ltd, 2009, all rights reserved. No part of this documentation may be reproduced in any form or by any means or be used to make any derivative work (including translation, transformation or adaptation) without explicit written consent of Velocix. Registered office: 326 Cambridge Science Park, Milton Road, Cambridge, CB4 0WG, United Kingdom