The Edge Caching Effect: Transforming SVOD Services

With global Subscription Video on Demand fast approaching 4 billion viewers, it’s clear that the media and entertainment industry must embrace new content distribution strategies to continue scaling and delivering great consumer experiences.

By 2025, Cybersecurity Ventures estimates that data in the cloud will reach 100 zettabytes – 50 percent of the world’s data. One factor in this is the increasing popularity of streaming services. The OTT (over-the-top) video market in Asia is projected to surpass $50 billion by 2024, led by India and Indonesia, due to their massive populations and improving digital infrastructure. Africa is also witnessing rapid growth, with SVOD subscriptions expected to reach 13 million by 2025. In mature markets like the United States, the number of SVOD subscriptions per household peaked at approximately 3.5 in April 2023, but a trend towards fewer subscriptions per household is emerging, possibly due to the rise of free ad-supported streaming television (FAST) platforms.

Challenges in Traditional SVOD Models

Traditional SVOD services rely heavily on centralized data centers and Content Delivery Networks (CDNs) to distribute content. This model, while effective to an extent, faces several critical challenges. Latency is a significant issue as centralized data centers can be located far from end-users, leading to delays and buffering issues, particularly during peak viewing times. High-definition (HD) and ultra-high-definition (UHD) streams require substantial bandwidth, leading to network congestion during popular content releases. According to a recent feature article in the New York Times, Bob Chapek, Disney’s former Chief Executive, and Mike Hopkins, head of Prime Video and Amazon MGM Studios, stated that making a profitable streaming service now requires a subscription base of at least 200 million. So far, only Disney, Amazon, and Netflix have surpassed this threshold.

Scalability is another challenge, as rapid subscriber growth and sudden spikes in demand can strain existing infrastructure, leading to performance issues and increased operational costs. Additionally, bottlenecks occur because content from SVOD services is often cached on the wrong side of the ISPs’ core networks. Typically, CDNs cache content at data centers outside the ISP network, meaning that identical streams traverse the entire ISP network to reach end-users, consuming significant bandwidth. Peering or interconnection links between CDNs and ISPs are vulnerable to congestion, particularly during high-demand periods.

The Technical Side of Open Caching

Open caching addresses these challenges by storing content deep inside ISP networks and much closer to end-users at the network’s edge, improving performance and reducing latency. The Streaming Video Technology Alliance (SVTA) and the Internet Engineering Task Force (IETF) have been instrumental in developing specifications and proposing standards for open caching, facilitating interoperability and flexibility among CDNs. This approach enables content providers to switch CDNs without extensive reconfiguration, reducing complexity and vendor lock-in. By placing caches within service provider networks, open caching minimizes redundant data streams, enhancing service quality and reducing network expansion costs.

Qwilt has been at the forefront of implementing these specifications, deploying open caches in over 150 ISP networks worldwide. This broad deployment showcases the practical benefits of open caching, from improved content delivery efficiency to enhanced user experiences.

Transforming SVOD delivery through Open Edge Caching

Qwilt’s deployment of open edge-based caches for content delivery is pivotal in connecting service providers with content providers, offering mutual benefits for both parties. The software’s flexibility allows it to operate on various hardware, including Qwilt-certified devices and hardware provided by service providers. This versatility enables Qwilt to adapt to different deployment needs seamlessly. Qwilt supports both bare metal and virtualized environments, though there is a growing preference for virtualized deployments due to their flexibility and ease of upgrades.

Content caching decisions are driven by content cacheability, which is influenced by HTTP headers such as Cache-Control and Expires and the content provider’s delivery service configuration. Qwilt, like many CDNs, empowers content providers to fine-tune caching behaviors through configuration settings, which can supplement or replace the instructions given by caching headers. Qwilt uses both DNS and HTTP routing, with HTTP routing offering more granular control and improved caching efficiency. The platform also handles content with embedded ads, ensuring smooth transitions and preloading ads to prevent rebuffering issues.

The content provider usually predetermines the delivery of various content formats, like 4K, 1080p, and 720p. In recent years, content providers have optimized their codecs, formats, and bitrate ladders to lower delivery costs, which enhances cache efficiency for services like Qwilt. Furthermore, Qwilt’s approach to content delivery involves flexible deployment strategies, close cooperation with service providers, and advanced caching techniques, ensuring high-quality streaming experiences for users.

Long-Term Trends and Future Prospects

The adoption of edge caching addresses current challenges and opens up new possibilities for the future of SVOD services. With edge caching, personalized content delivery can be significantly enhanced, allowing SVOD platforms to offer more tailored viewing experiences, including targeted advertisements, customized recommendations, and region-specific content.

Support for emerging technologies such as 8K streaming and virtual reality (VR) is another promising trend. These new technologies require low latency and high bandwidth; edge caching is crucial for deployment. By leveraging edge caching, SVOD platforms can nurture and expand their subscriber base without compromising on the quality of service.

Edge Caching: The future of media delivery

The integration of edge caching into SVOD services represents a transformative shift in content delivery. By addressing the limitations of traditional CDNs, edge caching ensures reduced latency, improved performance, and cost efficiencies. As the demand for high-quality, immersive content grows, edge caching will play a pivotal role in enabling personalized experiences and supporting emerging technologies.

Looking ahead, the future of streaming and CDNs is intricately tied to the evolution of edge computing. This shift from traditional centralized distribution to a dispersed edge-focused model is essential to handle the staggering volume of data moving across the web. According to Digital TV Research, global OTT TV episode and movie revenue is expected to reach $228 billion in 2029, up by $64 billion – or 39% – from $164 billion in 2023. About $15 billion will be added in 2024 alone! The ultimate destination for CDNs is a future where edge delivery reigns supreme, characterized by enhanced bandwidth efficiency, increased capacity, and the facilitation of revolutionary edge applications.

Unified edge computing, exemplified by initiatives from Qwilt, demonstrates the efficiency and effectiveness of this approach. By leveraging partnerships with over 150 service providers, including Verizon, Airtel, Cirion Technologies, and Telefónica, Qwilt is building the world’s largest edge cloud, underscoring the viability of this new CDN approach. By harnessing the potential of edge computing, the industry can unlock new horizons of efficiency, scalability, and innovation, ensuring that the digital content ecosystem remains vibrant and responsive to the ever-evolving demands of users around the globe.