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Web Streaming Solution
DIGIMELD GRID-STREAMING SOLUTIONS
Copyright © 2008 DigiMeld, Inc.
The Problem
• Cable & TV broadcast are capable of having 100M viewers watch the same show at once, but the internet still struggles with 500k concurrent viewers
– In March 2008 Oprah’s website tried to stream content to 1m viewers and failed at 360k concurrent streams.
• The cost for 10m concurrent viewers on the internet is still about 10x than on Cable.
• Ad CPM pricing is still an issue on the web as advertisers are still not willing to pay Cable or TV rates for web CPMs
– Cable rates have gone up over time while the number of viewers has gone down – leading to an increase in rates per user over time.
– However, these same advertisers are not paying the same rates online because the quality and scalability has not yet been matched.
• Opportunity = by solving the scalability and cost problem, companies can charge premium rates similar to those of cable TV on the internet and the majority of TV content will become available on the Internet.
• The first company to solve this puzzle will become the next Youtube.
Web Streaming Solution
Web Streaming Solution
Solution - DigiMeld• DigiMeld enables for the first time millions of concurrent viewers via Grid-streaming
(both live and VOD streaming) technology.• DigiMeld platform and solution provides 50-80% bandwidth reduction and cost
savings for content publishers.• More viewers, Lower cost with better quality!• The CPM question was already proven by Hulu.com, which has been consistently
charging the same CPM for the TV and web content on their site.
Web Streaming Solution
About DigiMeld• Founded in 2008 • Headquartered in NYC with 10 full time employees• Seeking to raise $2M in next round of financing• Raised $700K seed funding from angel investors in April 2008• Management Team:
– CEO: Alex Mashinsky - Serial Entrepreneur; Founder of Arbinet (NASDAQ: ARBX -largest communications exchange); 50 issued patents
– Founder and CTO: Jerry Qin – PhD, CTO at Surho, CTO at Jointop Software.• Development team in Shenzhen (ex-QQLive product managers)• Patent pending technology for disruptive live and on-demand Internet video
streaming• Platform for DigiMeld.tv – highly scalable, low cost, end2end publishing and
streaming platform• Target market – Mid-tail video publishers and distributors• Diversified Revenue Streams• Successful trials completed with over 100,000 concurrent viewers
Web Streaming Solution
DigiMeld SuperStream Technology• Core Grid-Streaming technology platform
– Use of caching servers, “superviewers” and peers that adapt to network conditions for lowest cost delivery
• High concurrency live and on-demand streaming– Designed to scale to millions of simultaneous users
• High cost advantage over traditional (CDN based) streaming for high concurrency and HD
– Average incremental costs of streaming decreases exponentially as the audience size grows
• Highly accurate, viewer analytics to drive increased CPMs for advertising
• Infrastructure seamlessly integrates with CDN, Enterprises, and ISPs to utilize peer-assisted streaming across wide-area and metro-area networks
Publisher, Plug-in and Player
Publisher
Browser Plugin
Universal Player
Web Streaming Solution
Web Streaming Solution
World Cup 2006The following chart demonstrates the successful test of DigiMeld’s technology in China during rebroadcasts of the World Cup games in 2006. This extended test provided a unique opportunity to stress test the DigiMeld platform and optimized with concurrent viewers exceeding 100,000.
NASA Live Public Channel Broadcasting (2/08 – Present)Plug-in Downloads around 100K with minimum promotion. Positive viewer comments from around the world.
VOD – Sina TV and Samsung Set-top-boxThe VOD solution has been adopted by Sina.com (China’s #1 Internet portal) and Samsung for their new Set-top-box offering.
Proven Technology
Web Streaming Solution
Cost Structure of Delivery• Variable cost structure
– For live streaming, low fixed costs
– For VOD streaming, pay as you go ($/GB based)
• Incremental cost per user dramatically drops as streaming volume increases
Web Streaming Solution
Target Market
Mid-Tail Focus
Digimeld – focusing on clients that have the capacity to grow
user base substantially
Now CDN’s, future Grid-
streaming
Long TailCDN’s
domain
• High quality professionally produced VoD
– Mid-tail
• High volume live events
– 100k to 2M concurrent streams
• Where quality, scale and cost need to be optimized
– Reliable quality
– High scalability
– Declining incremental costs
• 10 customers since launch, including
– YFE (family entertainment)
– Track Entertainment (Media company connection brands and consumers)
– “The Third Jihad” (First feature film ever broadcast over internet)
