Media madness: With iBeam, ISPs deliver video-quality content over Internet

Streaming media network provider iBeam Broadcasting, which launched its Internet streaming media network in September, teamed with Covad Communications in November to help deliver a simultaneous Webcast of ABC's "The Drew Carey Show."

Unlike those watching the show on TV only, people who also tuned in via the Internet received additional content such as the "Drew cam," which filmed the quirky things that happen in Carey's house when he is at work. The Webcast attracted 1.9 million viewers, making it one of the largest Webcasts in Web history.

By striking relationships with content providers such as Warner Bros. Online, which is aligned with the "The Drew Carey Show," iBeam has attracted many ISP customers looking to provide video content to customers. Covad offers high-speed Internet capability but was missing content. Although iBeam was only one of about seven companies that participated in the Drew Carey Webcast, it is confident that its media streaming technology will be what moves an increasing amount of media content over the Internet.

"Warner Bros. is using the Internet to supplement its traditional media outlet," said Tom Gillis, vice president of marketing with iBeam. "This way there is two-way interaction with the content, and [the Web] is a new medium for which to create content."

To avoid packet loss, iBeam deploys a network of MaxCaster streaming servers at each of the ISPs' points of presence. The servers then are fed by a satellite broadcast. Similar to cable TV distribution, the satellites broadcast the streams to a series of headends, which distribute them down the last mile to end users, thus bypassing the Internet backbone. ISPs do not pay when they team with iBeam, which charges content providers.

"We have built an infrastructure that lets content providers distribute content via the Internet and make a profit," Gillis said. Webcasting makes it possible for a content provider to target people with even the most distinct interest, also presenting opportunities for target advertising.

"iBeam and its competitors are the next step in helping DSL and cable providers convince consumers to sign up and experience broadband," said Greg Morrow, vice president of business development for Launch.com, an iBeam customer. "We have to get all of the pieces in place for consumers to enjoy the differentiated services."

iBeam currently is working with 70 ISPs but plans to reach 120 within a few months. Because Internet traffic congestion has inhibited the delivery of rich material, ISPs have had to find other solutions.

"Covad has a fast last-mile connection, and now [with iBeam], we have content that can be viewed like a VHS-quality tape," said Avhi Ingle, group product manager of broadband services for Covad. "It allows companies to make the number of people they reach [with specific content] smaller. This would never be feasible in a broadcast environment."

The Drew Carey Webcast is a watershed event, and other Webcasts should soon follow, Gillis said. "Most people were able to access [the show] on the Web. Every media company is foolish if they are not planning some type of Internet component," he said, suggesting that TV's February sweeps week would be a perfect opportunity to use the technology.

But the change won't occur overnight. "Webcasting vs. plopping down on the couch and turning on the television is still in an experimental phase," said Boyd Peterson, vice president of consumer market convergence at The Yankee Group. It will be a while before the Web becomes an alternative to TV for video, but it will be appropriate - especially in areas where usage patterns show suitable demand, he said.

"Service providers will be interested in creating competitive differentials, and content could position one provider against another," Peterson said.