CAMBRIDGE, England, December 10 /PRNewswire/ --

- Velocix Metro corrects Internet Economy 'fault-lines' that currently
exist between traditional Content Delivery Network (CDN) providers, Internet
Service Providers (ISPs) and On-Line Video Broadcasters

Velocix(TM) (http://www.velocix.com), provider of a leading worldwide
Digital Asset Delivery Network, today announced a next generation video
delivery solution that corrects "fault-lines" that currently exist within the
Internet economy. The introduction of Velocix Metro makes the Video Web of
the future possible today with radical improvements in quality of service and
a dramatic reduction in cost of delivery.

Exponential growth in Internet traffic levels, predominantly driven by
consumer demand for video, has exposed fundamental disconnects in the value
chain for web video delivery. Traditional CDN providers charge video
broadcasters for premium delivery services but ignore the fundamental role
that ISPs play in the end-to-end delivery process. Rather than including ISPs
in the value chain, CDN providers simply pump video traffic into their
networks, leaving the ISPs to bear the cost of distribution on to their
subscribers.

"For content owners and ISPs the web video debate is really an economic
question -- if the cost of delivery can be contained, the question loses its
bite," said Ben Keen, Chief Analyst at Screen Digest. "It's not the Internet
that's likely to 'break' but rather the current ISP business model that will
prove difficult to sustain. To 'tame' this issue, content owners and CDNs
must respect the ISPs' position and work together to ensure that costs don't
become prohibitive. Velocix Metro is a great example of a promising approach
and technology to facilitate this collaboration."

"Traditional CDN providers promising on-line video broadcasters high
quality delivery and charging premium rates are the 'Emperors New Clothes' as
they don't have the end-to-end control over the delivery system," said John
Dillon, Chief Marketing Officer at Velocix. "CDN providers distribute video
content to the 'North-side' of ISP networks and then simply throw it over the
wall and rely on their goodwill to deliver at the required bit-rate and
quality, to their subscribers. The raging debate of today is how long ISPs
will be able to maintain the required delivery performance levels for high
quality video as traffic volumes increase?"

Velocix has been working with major ISPs, Broadcasters and Content Owners
to provide a solution to this issue. Velocix Metro is a new deployment
alternative for the Velocix Digital Asset Delivery Network, adapted and
optimized specifically for operation within an ISP network domain. Velocix
Metro ISP deployments deliver video from Velocix Metro nodes installed and
operated from within ISP networks, close to the consumer. This significantly
reduces the ISP's network cost burden, removing pressure to manage down its
network overheads. ISPs are therefore able to provide smooth passage to their
subscribers with improved quality video streams and downloads delivered.

Velocix Metro enabled ISPs receive a revenue share based on traffic
delivered via their networks from Velocix. In addition, they gain access to
their own low cost Content Delivery Network capabilities, enabling the launch
of new rich media services to their subscriber base. Velocix Metro ISP
deployments are also interconnected via the global Velocix Digital Asset
Delivery Network, resulting in a federation of networks that provides
groundbreaking video delivery performance and economics, together with
end-to-end management and control over the entire video delivery process.

"Velocix Metro provides an opportunity for content owners/publishers and
ISPs address the downstream cost issues created by the explosion of online
video," said Melanie Posey, research director at IDC. "However, CDN
technology is only one part of the solution. Mutually beneficial commercial
arrangements and a willingness to collaborate are the key elements needed to
achieve solutions that balance the interests of all parties in the Internet
video supply chain."

About Velocix

Velocix offers the broadest and most innovative range of digital delivery
services available today. The Velocix global network provides an Internet
fast lane for digital assets such as video, music, software and games. With
Velocix, high quality streamed video plays uninterrupted from start to finish
and file downloads complete without failure in a fraction of the time.

Velocix is relied upon globally by owners of large digital assets to
provide unparalleled quality of service and delivery performance, with
affordable economics. Velocix does all this whilst providing new levels of
control over the global digital asset distribution chain. For more
information, visit http://www.velocix.com.