JumpTV builds $49m .ppt, $1m CDN
BeetTV reports that JumpTV has invested $50 million in a proprietary content delivery network (CDN), because the existing CDNs “couldn’t provide what they need”.
Akamai is one of those existing CDNs. If you haven’t dealt with Akamai before the bottom line is that you pay 10x what you would if you built your own solution, but even that wouldn’t add up to $50m.
Jump TV state that they
“provides live streams of some 300 ethnic television shows from 75 nations. Expats, immigrants and foreign language speakers subscribe to the programming which is delivered to the PC. It is also a huge distributor of online sports streaming, providing some 200 sports programs from 30 nations. “
Wonderful, congratulations! But we could also say that Putfile (the site I created and sold) provides millions of video streams to every single internet enabled country on earth. Providing “300 ethnic television shows to 75 countries” doesn’t mean that you are pushing masses of traffic (X gig/sec).
The graph below compares the reach (viewers) of Putfile vs. JumpTV.
The graph clearly shows that Putfile has 4x the reach of JumpTV. Putfile doesn’t use a $50m CDN, nor a $500,000 CDN for that matter.
Out of interest I priced up a custom solution involving 10 gig/sec of bandwidth from 10 cities worldwide with 10tb of redundant data storage (about 10 times what would be required by an operation like JumpTV) just to see if I could get anywhere close to $50m.
Spec: 10 cities worldwide with 1 gig/sec premium bandwidth per city. 10 gigs/sec bandwidth with 10tb of replicated data.
Per Location:
- $20,000 colocation and bandwidth / month
- RAID 5 arrays, 10tb of fully redundant data storage. $30,000 one off cost
- Front end servers * 10 to connect to storage arrays $20,000 one off cost
- Database servers keep track of “where” data is replicated to $20,000.
- Programming $100,000 one off cost
Total cost per month: $200,000
One off hardware and software: $420,000
Cost of running for 1 year $2,820,000
I believe that the above quoted capacity is 10x what is needed, and that $282,000/year would be a more realistic running cost.
I propose that JumpTV actually purchased $49m worth of powerpoint presentations and $1m worth of CDN.