Potentials and Challenges of Peer-to-Peer Based Content Distribution

Abstract

Abstract—Multimedia content currently accounts for over three quarters of all Internet traffic. This increase in traffic volume and content availability derives from a paradigm shift from the traditional text and picture based Web, to more resource demanding audio and video content. A controversial driver for this development is content distribution systems based on peer-to-peer overlay networks. Flooding the Internet with often illegal content, these networks now pose challenges to all actors in the value chain. However, if viewed as surmountable challenges in an evolutionary path, peer-to-peer technology has the potential of increasing efficiency in content distribution and unleashing resources to form scalable and resilient overlay networks of unprecedented dimensions. In this paper we apply economic analysis to examine the challenges and potentials of peer-topeer technology in content distribution, and how, and in which circumstances, peer-to-peer technology can be used to increase the efficiency of multimedia services. The paper provides an up-todate overview of the development of peer-to-peer overlay networks as well as describing the economics laws governing their use. To conclude the study, the paper analysis Skype, a well known telecommunications service utilizing the peer-topeer technology, as well as demonstrating a novel content distribution service using empirical data from the Danish Broadcasting Corporation. Keywords-component; Content Distribution, Peer-to-Peer