Presentation by Andrew Parker, CTO ( aparker@cachelogic )

1. BROADCASTERS | AGGREGATORS | FILM STUDIOS | VIDEO PORTALS P2P Media SummitAddressing the cost and performance challenges of digital media content delivery Presentation by Andrew Parker, CTO (aparker@cachelogic.com) MUSIC LABELS | SOFTWARE VENDORS | COMPUTER GAMES VENDORS

2. Market leader in the provision of P2P management solutions to the ISP/telco sector P2P-Management Protocol-based P2P recognition and on-network caching solutions Streamsight Analysis Network Layer-7 application layer DPI network providing Internet traffic analysis for ISPs VelociX Hybrid peer-assisted platform for digital media delivery Large object, digital asset delivery service for content owners:film, video, broadcast, music and software vendors Commercial Overview Headquartered in Cambridge, England, regional offices in the USA and Singapore July 2006: closed $20 Million Series C funding round Introduction to CacheLogic Global Coverage and Support

3. P2P has been at the forefront of the exponential growth in demand for on line digital media 1999 to present: fuelled by Napster, KaZaA, eDonkey and BitTorrent More than 60% of P2P traffic is video Asia - 50% Objects > 2.5Gb !! P2P usage is widespread and growing 2004 – 3 million unique IP addresses in 30 days 2006 – 3 million unique IP addresses in 8 days Continuing Impact on ISPs 50-65% of downstream traffic is P2P 75-90% of Upstream Traffic is P2P P2P as future of distribution CacheLogic Research Internet Protocol Breakdown 1993 - 2006 CacheLogic Research Breakdown of File-Types on Major P2P Networks - 2006

4. P2P is a global phenomena

5. Decreasing Revenue per GB Big disparity between Audio and Video HD will make this problem even worse iTunes $1.00 (5Mb Audio) $1.79 (500Mb Video) Why is P2P so attractive ? • Scalability • Existing distribution and streaming technologies penalise content owners for success! • The economics of P2P delivery are much closer to broadcast economics

6. Sounds Great….But

7. 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 P2P places the burden of content distribution on the access network Today’s Internet is not Designed for Symmetric Traffic

8. ADSL and Cable modem were designed for asymmetric traffic Web VOD ADSL Download <7Mbps Upload < 800kbps 11:1 ADSL2+ Download <24Mbps Upload < 1Mbps 24:1 Asymmetry is increasing Broadband Access Network Design - DSL

9. 50-65% of downstream traffic is P2P P2P is expensive bandwidth In most countries 90% of P2P traffic crosses international boundaries P2P applications aggressively consume all available bandwidth Impact of P2P on Service Providers – Transit/Peering

10. P2P is inherently symmetrical Most traditional protocols are download orientated (e.g. web) This makes Peer-to-Peer a huge problem for last mile providers Responsible for 75-90% of upstream/last mile traffic on the network. But … I thought P2P was making efficient use of “underutilised” upstream capacity in the network Impact of P2P on Service Providers – Access

11. World’s first multi-protocol peer-assisted media delivery platform - creating an environment for secure, scalable and cost effective media distribution to mass and niche markets Economic benefits and scalability of P2P Resilience, accountability and efficiency of a physical delivery network Resolves ISP Neutrality Key Benefits: High-speed delivery Mass audience scalability Cost-effective large object distribution VelociX Performance Statistics: Comparison of content download times pure P2P vs. VelociX peer-assisted delivery Parameters:60 minutes television programme (sample 1 - encoded at 1Mbps and sample 2 – encoded at 2Mbps) downloaded over a 10Mbps connection VelociX: introduction BROADCASTERS | AGGREGATORS | FILM STUDIOS | VIDEO PORTALS | MUSIC LABELS | SOFTWARE VENDORS | COMPUTER GAMES VENDORS

12. CacheLogic, NTL, BitTorrent

13. Legitimate content provided by theservice is placed on the Servers How it Works Content P2P Server Look Up Server Tracker Server If it is legitimate content, a cache is added into the Peer group. The Tracker works as normal to findPeers that can support the download

14. The Results of the Trial content: Film H comment: Unbelievable speed! 18 mins for a 1.2Gb file. Awesome! content: Episode 3 comment: 350mb in 5mins! epic! content: Episode 2 comment: 350mb in 7 mins!!!!???? awesome!!! • Trialists on a 10 MB/s service saw a x14 average increase • Trialists on a 2Mb/s service saw a x9 average increase • Trialists on a 1Mb/s service saw a x6 average increase It works! No longer upload constrained (& less upstream traffic)

15. Economics for existing content distribution are broken, and will get worse as content continues to grow. P2P can resolve the economic challenges, but is transferring the burden of the cost elsewhere…. The ISP The ISPs interests can also be balanced, ala NTL Reduced costs Increased legal content to drive network usage and stop ISPs becoming commoditised bit-pipes Summary

16. Thank You!

17. Traditional Content Delivery vs. P2P Consumer Consumer Access Access Backbone Backbone Host Host Content Content But in a P2P world it flows like this Content Flows like this