1. Confidential Challenges of Internet Streaming Sloan Media Tech February 8, 2001

2. Confidential Outline Hype Players Applications Business models for delivering those apps Service providers Technical challenges to implementing

3. Confidential Market Trends Streaming Industry Topic Area Useful StatisticsSource Streaming Media Market Size $2.5 Billion by 2004 $21 Billion by 2008 Internet Research Group Streaming Usage11% of Sites today 89% of sites by 2003 Jupiter Communications June 2000 Broadband Usage5M U.S. Homes now (10%) 28M U.S. Homes (2005) Jupiter Communications September 2000 Most Popular FormatEnd Users - 68% Real Content – 63% Real Jupiter Communications October 2000 Most Popular Streaming content 1.Music Downloads 2.Music Listening 3.Special Events 4.Movies / Television Red Herring November 2000 “What consumers think about digital delivery of entertainment”

4. Confidential End Users In the home, at work, at school Content Delivery Networks (CDNs) Akamai, Digital Island, iBeam Backbone Networks AT&T, Enron, Williams Broadband ISPs Cable MSOs, DSL Narrowband ISPs Consumer Disney, News Corp., Time Warner, Viacom Lycos, Yahoo! E-Commerce Providers Enterprises Advertisers? Corp. Networks Players Applications Service Providers

5. Confidential Applications

6. Confidential Consumer Applications Religion –Short format web video –Trailer for Titanic (but not Titanic itself) –Desktop, not set-top Leveraging existing content for existing businesses –Music and music videos –News and sports –TV / movie related properties –Very few, very large mass content producers Growing e-commerce –Mini product infomercials / demos Maybe streaming advertisements?

7. Confidential Enterprise Applications Sales channel training –Product announcement to all Ford dealerships worldwide Management communications –Explain latest and greatest reorg Investor communications

8. Confidential Consumer Business Models Consumer applications leverage existing products Media Companies –Survivor web site –Drives eyeballs to TV show (clear value) –Brings TV advertisers to the web –Maintains CBS brand loyalty (diffuse value) –Not a premium service / no sub charge E-commerce companies –Sell existing products (CDs, author interviews at Amazon) –Clear value Challenges: must be mass media –Cheap –High quality presentation –Broad reach

9. Confidential Enterprise Business Models Enterprise applications reduce cost of business Challenges (same as consumer): –Cheap –High quality presentation –Broad reach

10. Confidential Service Providers

11. Confidential Service Provider Business Models Sell access to the network Move content between networks Provide a home for content on the network

12. Confidential Broadband Service Providers How do I differentiate my product? –Earthlink, AOL, Verizon, ATT, RCN all sell access How do I drive penetration? –Speed gets me 5% of houses passed –Always on / no second phone line gets another 5% –Then what? –Wall street is expecting 25% penetration How do I maximize revenue / bandwidth? –More HBO? More cable modem content? How do I implement this? Buy off-the-shelf?

13. Confidential Content Delivery Networks (CDNs) Accelerate content delivery Maintain presence across wide geographic areas Build over-lay networks on top of other networks Have many content provider relationships Don’t own parts of the network –At the mercy of those that do

14. Confidential Service Provider Predictions Major access providers become CDNs –Ability to channel eyeballs toward content –Own the last-mile real estate Traditional CDNs become content aggregators –Provide global reach to content providers –Maintain last-mile presence in 2 nd tier markets –Become technology providers to facilities based networks

15. Confidential Technology

16. Confidential The problem with delivering video… Not enough predictable bandwidth end-to-end (not latency!)

17. Confidential The solution… Bypass as much of the network as possible

18. Confidential Which raises a host of new questions Content lives in lots of different places How to direct a user to the right place? How to afford all the replication devices? How did I fit all the equipment in? How do I manage it all? How do I move all the content to the edges?

19. Confidential Solution: Content Aware Networking The technology required to make the network aware of the content it is delivering Not just about moving packets Understanding usage patterns Reacting, predicting Companies building product in this space: –Cisco, Nortel, Lucent, Inktomi, Network Appliances, Cacheflow, EMC, Avid, and of course Vividon

20. Confidential Q and A