About Voddler, our streaming technology Vnet and accelerating video-on-demand (VOD)

VODDLER, VNET AND ACCELERATING VOD VODDLER@IBC2014

MARLA.SHAPIRO@VODDLER.COM

ANDERS.SJOMAN@VODDLER.COM

WWW.VODDLERGROUP.COM

Voddler Streamlines and Accelerates Global VOD

Our mission: Simplify home entertainment distribution for content owners with efficient over-the-top (OTT) streaming to consumers globally

Consumers Move Online – And Fill Up The Pipes

Kbits/sKByte

Kbits/sMByte

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Complexity

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VoiceSkype

MusicSpotify

VideoVoddler

early P2P VoddlerNetP2P

Technology complexity

Bandwidth requirement

The Voddler platform, powered by our streaming technology Vnet, optimizes network usages and accelerates OTT video streaming, to the benefit of VOD services, network operators, and of course end-users.

Voddler With Vnet Can Help…

Voddler speeds up video content delivery, while cutting the cost of streaming and storage. Powered by Vnet, Voddler saves costs and optimizes streaming for everyone in the IPTV/VOD/OTT-market:

Actor: Main Voddler/Vnet benefits:• Content owners Global OTT streaming with quality of

service at fraction of current cost• Existing VOD services/ Save on streaming costs; add Quality

Pay-TV operators/ of Service to even the most popular VOD platform operators content; future-proof your streaming

for coming audiences• IPTV providers (telco, Optimize bandwidth consuming

traffic cable, ISPs) / in your networks; offload from CDNEquipment providers storage and streaming to reduce costs

I FEEL A GREATDISTURBANCEIN THE FORCE[OBI-WAN KENOBI STAR WARS 1977]

Voddler and Vnet in Brief

Vodler offers a decentralized(*) streaming solutionwith centralized (**) control

that gives unparalleled streaming quality (***) at a fraction of the normal cost (****)

(*) effective - distributed resource allocation of cost taken

(**) secure - maintaining centralized control protocols

(***) scalable – more users leads to better the quality

(****) proven – 95% cost reduction on benchmark service

Server-based networks (CDN)Managed, centralized(One-to-many)

Unmanaged distributed networksUncontrolled, decentralized(Many-to-many)

VoddlerNet (VNet)Managed Distributed Network(Many-to-one)

Vnet: Central Control, Decentralized Streaming

Vnet: How it Works and What It Delivers

• A small installation on each user device makes it work like a small edge server.

• This creates a decentralized distribution on the true edge of the network – where all costs are already taken!

• Each node is controlled by Voddler and content is inaccessible to the device owner. Only authorized admins can access network content.

• Only strong devices (with sufficient hardware, memory, and processor capacity) are selected as active nodes; “weaker” nodes only receive.

• Grows stronger as more people use, thus scalable at all levels: perfect match supply/demand

• Offers Quality of Service (QoS), also for HD-high bitrates, and also in low-bandwidth territories

• By design it is cloud based and device agnostic• Allows unlimited streams in parallel always, inc. prime time• Software-based, no hardware investment needed• Secure: both by architecture (only slices of content remain on each

individual device, never the full movie) and by supporting industry-leading DRMs

• Sophisticated and patented balancing algorithms control the distribution and replication of slices (resources)

• Works on both fixed and mobile broadband connectivity• Empowers features such as offline viewing, cloud-EST and personal

digital lockers• Easy roll-out, cost-efficient streaming: save +95% of streaming

cost’

Vnet – Proprietary, Patented, Proven

The Voddler Solution: A Modular Approach

The Voddler Solution conceptually builds on three modules, with Vnet as the empowering technology. It can be employed either in full or on a module-by-module basis, to augment and free up resources in already implemented VOD services.

Vnet Streaming/data distribution• 95%-99% cost reduction to traditional CDN solutions• Quality of Service (QoS)• Integrates with any existing streaming architecture;

no need to replace current soluitons, just add Vnet.

VOD ManagementSystem

Access and content control• Rights management: time (window) and territories• Revenue model (TVOD, SVOD, AVOD and EST)• Device control (which content avail on which platform)• Streaming technology agnostic

Player Viewing• DRM• Localization (subtitling, audio tracks)• Player controls

THE PROOF IS INEATINGTHE PUDDING[MIGUEL DE CERVANTES | DON QUIXOTE |1615 ]

Our Proof of Concept Service: Voddler.com

• Approval by over 30 content holders including Hollywood major studios

• 1,2 million users

• 20+ million full length movies delivered at an average bitrate of 2 mbps

• All four VOD models (AVOD, TVOD, SVOD, EST) during 2,5 years operation in five countries (Sweden, Norway, Finland, Denmark and Spain)

• Average CDN off-load 95% = streaming cost saving of 95%. All with Quality of Service.

Quality of Service-streaming with Vnet

Vnet performs better the more users there are. Use it as your only streaming solution, or integrate it on top of an existing platform – no need to replace anything. It immediately starts offloading your current streaming provider, saving costs and providing an optimized stream

WHAT WE DO IN LIFE, ECHOES IN ETERNITY[ RUSSEL CROWE | GLADIATOR | 2000 ]

Voddler At A Glance

• Stockholm-based tech venture, founded 2007

• Vnet, Voddler’s own proprietary streaming technology, is Voddler’s core.

• Vnet delivers device-neutral viewing experience with global Quality of Service (QoS) in HD and with offline mode, over the top (OTT) on the public Internet

• A small installation on each user device makes it work like a small edge server. Vnet connects these nodes into a large, decentralized – but centrally controlled! – network.

• Voddler also offers a flexible Video Content Management System (CMS) with support for all VOD-revenue models, rights control for windowing and territories.

• Voddler’s own consumer facing VOD-service, voddler.com, launched in 2010, and has served 1.2 million registered users in 5 markets. Over 18 million movies served since 2011, licensed from leading film studios, including Hollywood majors.

• Total invested: €24 million, from leading investors incl. Cipio Partners and Nokia Growth Partners

FOR MORE INFORMATION:

MARLA SHAPIRO, HEAD OF BUSINESS DEVELOPMENT

MARLA.SHAPIRO@VODDLER.COM

ANDERS SJÖMAN, VP PRODUCT AND COMMUNICATION

ANDERS.SJOMAN@VODDLER.COM

WWW.VODDLERGROUP.COM

LOOKS LIKE THE START OF A BEAUTIFUL FRIENDSHIP[ HUMPHREY BOGART | CASABLANCA | 1942 ]

MORE ON VNET

Use case: A Vnet User Receives A Video Stream

An end user (the largest yellow circle at top right) is watching a video on a website. The site uses Vnet, so it sources the video from all nearby users ( or ”Vnet nodes”) that have pieces of that movie. (Source: Screenshot from network monitoring tool EtherApe.)

Vnet saves >95% on CDN costs

• Vnet coexists seamlessly with any CDN• Vnet offloads the CDN exponentially: Heavier usage of the

service means increased usage of Vnet (but never of CDN)• Increased usage thus means immediate cost benefits, as all

traffic that Vnet takes over comes at approx. 5% of the CDN streaming cost.(*)

(*) Voddler benchmark from running own proof-of-concept service voddler.com in Scandinavia: >95% traffic handled by Vnet across titles (=95% cost reduction)

So Vnet is a CDN?

Yes...

• Vnet outperforms CDN-solutions both in cost efficiency and quality of service.

• When compared to a CDN, Vnet scales better at all data levels and, in fact, performs better the more users there are.

• It can be used to augment/supplement an existing CDN-solution.

• It can be used to replace an existing CDN-implementation.

..and no

• As Vnet builds on employing surplus capacity of end-user devices, it depends on customer acceptance: For the end user, there has to be a consumption reason to participate.

• Vnet therefore does not operate as a stand-alone delivery network – it needs to be part of a VOD (or other consumer appealing) OTT service.

• The consumer-facing OTT service can be Voddler’s own solution – but can equally well be any other existing OTT service

• There has to be a fall-back provider (a CDN) for the cases when no end-user devices have the requested content

Pull process – true multi-point to point delivery

Cluster group

Playing device

slice = 4MB

chunk = 50KB

Multi-point-to-point delivery of chunks

If time outthenfallback Amazon

cloud

HTTPS (slice)

TCP

c1c2c3c4

c1c2c3c4

User has clicked Play-button and node starts establishing cluster and collect metadata

Cluster established, movie playing, node getting slices from its cluster

User pauses movie; the number of nodes remains for a while as node buffers content