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Internet content delivery as  a two-sided market Future Networks concertation meeting, Socio-Economics of the Network of the Future Workshop, 18 October 2010 SAIL Project www.sail-project.eu Tapio Levä (tapio.leva@aalto.fi) Department of Communications and Networking Aalto University 10-10-19
Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19
SAIL project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19
What is quality? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19 Source: Kilkki, 2008
Quality in communications ecosystem 10-10-19 Source: Kilkki, 2008
Trend: Hyper-competition  leads into hyper-usability ,[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19 Source: Finnish Future Internet Programme
Trend: Hyper-competition  leads into hyper-usability ,[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19 Source: Finnish Future Internet Programme Content providers  are willing to offer quality
[object Object],[object Object],[object Object],[object Object],[object Object],Trend: Focus from connectivity into content and services 10-10-19 Source: Faratin (2007), Labowitz et al. (2010)
[object Object],[object Object],[object Object],[object Object],[object Object],Trend: Focus from connectivity into content and services Internet service providers  are willing to offer quality 10-10-19 Source: Faratin (2007), Labowitz et al. (2010)
Definition of Two-sided Markets ,[object Object],Source: Rochet & Tirole (2006), Wikipedia,  10-10-19
Internet content delivery as a  two-sided market ,[object Object],Source: Zhang, 2010 ,[object Object],10-10-19 * = loss leader Content Provider Advertisers Consumers * CDN Content providers ISP/consumers * Service layer  (3 x 2SM) Interconnection layer (4 x 2SM)
Value Network: Client - Server 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 I2
Value Network: CDN 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 CDN I2 I2
Value Network: Inf. netw. (CCN) 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 CS CS CS I2
Key findings from 2SM analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: Zhang, 2010 10-10-19
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19
References ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],10-10-19

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Price of Quality, 6th concertation meeting

  • 1. Internet content delivery as a two-sided market Future Networks concertation meeting, Socio-Economics of the Network of the Future Workshop, 18 October 2010 SAIL Project www.sail-project.eu Tapio Levä (tapio.leva@aalto.fi) Department of Communications and Networking Aalto University 10-10-19
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  • 5. Quality in communications ecosystem 10-10-19 Source: Kilkki, 2008
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  • 12. Value Network: Client - Server 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 I2
  • 13. Value Network: CDN 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 CDN I2 I2
  • 14. Value Network: Inf. netw. (CCN) 10-10-19 Source: Zhang, 2010 Content Provider Own Server Data Centre Providers Consumers 2 Internet Access Provider 2 Internet Access Provider 1 Internet Backbone Provider Consumers 1 Traffic transfer Monetary transfer Intangible benefits Rented Server Content Makers Advertisers Sponsors I1 – Brand Recognition I2 – Information I3 – Loyalty I1 I1 I3 CS CS CS I2
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