Digital Fountain, a leading supplier of underlying IP video and audio delivery technology to IPTV and mobile operators, will likely challenge the economic model that CDNs currently offer with it's beta launch of its own video content delivery network (DF Splash) that specializes in instant-on high-definition (HD) video delivery. In addition, DF Splash is using Amazon.com's Amazon EC2 Web infrastructure outsourcing service in order to offer a much more affordable solution.
Rather than 'peer assisted' architectures to support extensive distribution of media files on local cache servers, Digital Fountain's newly launched DF Splash dispenses with investment in regional, distributed store-and-forward infrastructure. Digital Fountain's DF Splash will enable direct delivery of high quality, full-screen H.264 video from super-regional hosting centers without the need for peer or cache machines. The company states that they can accomplish this feat because the core forward error correction (FEC) software can correct up to 99% of packet loss which allows them to correct and recover missing or lost data packets without needing retransmission from the server.
Here is a video demo that demonstrates this unique technology and business model:
"We are very well positioned to solve problems that others can't," he says. "Since we have the transport layer to solve latency, we don't care about long haul distances. This allows us very competitive pricing and quick return on investment, because it requires so little capital expenditure on data centers or regional fiber. We'll never require the amount of infrastructure capital of the standard CDN competitor.”
Also somewhat uniquely in the current marketplace, Digital Fountain is offering a "pay-as-you-go" CDN solution with no long term commitments and transparent pricing. Although pricing is not yet public, he says the model will be "pay as you go with a small minimum. The more they stream, the lower their cost per gigabyte will be. Those who want to do large volumes will pay lower rates.”