Potentials and challenges of peer-to-peer based content distribution

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 examine the potentials and challenges of peer-to-peer technology in content distribution, and analyse how, and under which circumstances, peer-to-peer technology can be used to increase the efficiency of multimedia services. The paper provides an up-to-date overview of the development of peer-to-peer networks as well as describing the economics laws governing their use. To conclude the study, the paper analyses Skype, a well known telecommunications service utilising the peer-to-peer technology, as well as demonstrating the benefits of peer-to-peer based content distribution using empirical data from the Danish Broadcasting Corporation.