Regular cable TV is rapidly losing terrain to content that is streamed through online devices. The delivery model for content providers has changed completely over the past few years. But streaming media is a pretty complex process. Video is very data intensive and in order to provide end users at home a smooth viewing experience, Content Distribution Providers such as Akamai and Limelight, and Transit providers such as Level3 and Cogent, have created complex infrastructures to guarantee the best video performance over the internet.
As HD video, 2K and 4k become more common, video data keeps growing in size. Also, to remain competitive, content providers need to grow their libraries constantly. As a result, the central repositories – or origin servers – these content providers need to maintain, are growing rapidly as well.
Some of the bigger players, with Netflix in the lead, have already decided to build parts of the CDN infrastructure themselves, and smaller players are now following rapidly as more and more technologies become available that enable in-house origin servers. A second reason for content providers to work with in-house origin infrastructures is to be able to work with multiple CDN and transit providers to also drive down the cost of the data transfer.