Traffic Management of Video on Demand: An Analysis of Investments for Improving the End User's Quality of Experience

The current escalation in user demand for web contents, particularly Video on Demand (VoD), is causing a continuing increase in both the types of web traffic and the volumes of data transmitted. The greater demand arises from the new means of communication employed by individuals and companies, as well as the development of readily usable applications distributed by ‘app stores’. In this paper, we suggest that the stakeholders of a VoD framework, the Content Providers (CPs) and the Internet Service Providers (telcos/ISPs), should guarantee a solid Quality of Experience (QoE) to the end user through two potential investments: either in ultra-broadband (UBB) or in the technologies for the acceleration of web content, known as the Content Delivery Network (CDN) and Transparent Internet Caching (TIC). The aim of the paper is to analyse these investments in terms of providers' profits. The base hypothesis is that the investments are subsidized by the CPs, which, in recent years, have indeed been directing a large part of their revenues towards investments in network infrastructure.