The Internet as we know it was never architected to support on demand streaming of video, live events, gaming or AR/VR. However on demand video alone now accounts for approximately 80% of traffic. Existing content delivery networks (CDNs) based on the unicast Internet are expensive and inefficient. The major content streamers Disney, WB Discovery, Paramount and Peacock have amassed $ 10.7 bn in losses in 2022 in their direct to consumer businesses. A big reason for these losses is the high cost of content distribution.
Synthesis Cloud Inc. (SCI) is on a mission to change this. Their next generation IP multi-casting based CDN is built to serve as an overlay network to the traditional unicast Internet and serves as a dedicated infrastructure for data-intensive content streaming applications. In their pilot network in Oregon they have proven the extremely favorable cost economics and capital efficiency of the model. The company is now on a journey to build a nationwide network that will cover 95% of the US population.
SCI will revolutionize existing media infrastructure and deliver massive cost reductions, lower carbon emissions and consistently high quality of service all the way to the end consumer. Due to its low costs, it will open up new, currently under-served markets. But why is this relevant for mobility? Consumers want to have access to video content, follow live events such as sports or games anyplace anytime. And just like ISPs and telcos are challenged to keep up with every increasing demand for bandwidth to deliver a good customer experience, automotive brands will be measured by their ability to create a superior in-vehicle entertainment experience. Who do you blame when your on-demand video feed is buffering or your live sports stream is choppy? Your Internet Service provider or Netflix? And what good is a BMW 7 series with a massive screen in the back seat when the streaming quality is lacking? And aren’t Automotive brands suffering from the exact same problem that content streamers face: making connected mobility services profitable!
Automotive OEMs and Tier 1 suppliers should be aware of the emerging broadcast Internet and understand what it takes to support the technology in future model series. SCI Broadcast Internet does not rely on traditional gatekeepers such as ISPs and telcos but is ‘direct-to-consumer’. As a result, automotive brands and content partners have control over the Quality of Service and the cost, simply by buying capacity on the SCI network to realize the vision of the vehicle as a control point and portal into a whole new world of experiences.
The applications are endless, from on demand video, live events and gaming to HD audio, real world map up-dates including low latency friction maps, parking data etc. And as we will explore in a future post, the SCI Broadcast Internet is an excellent infrastructure for OTA up-dates, independent of telcos and Wi-Fi networks.
Future business models are about the convergence of technologies and industries. With the SCI Broadcast Internet, we will see a convergence of mobility and communications that will enable vehicles to deliver differentiated brand experiences profitably.