[Tech Report] Streaming Platforms Reducing Network Usage Fees... Distributed Technology 'Grid' in Focus

Utilized to Reduce Network Usage Costs for AfreecaTV and Chijijik

The burden of network usage fees on streaming platforms varies significantly depending on the video transmission method. The trend has shifted from the traditional method of direct transmission from the server to the viewer's device to a grid-based video transmission method.

Following the streaming platform SOOP (formerly AfreecaTV), Naver Chijijik announced that it has been sequentially applying the grid method since the 2nd of this month to reduce network usage fees. Earlier, Naver CEO Choi Soo-yeon stated during the Q1 earnings announcement that "grid technology will be applied to the Chijijik service in the first half of the year to reduce network usage fees," and this has now been implemented.

'Grid technology' focuses on distributing the load concentrated on the server by utilizing the computers of viewers participating in the streaming. The dictionary meaning of 'grid' is 'lattice' or 'grid pattern.' It refers to 'parallel' transmission like an intertwined lattice. Viewers participating in the streaming service do not just watch the video; the streaming company uses other viewers' computers as virtual servers to share the role of transmitting the video to other viewers. When viewer A streams a specific video, the video is temporarily stored on A's computer, and when a new viewer B streams the same video, A's computer acts as a virtual server and transmits it to B's computer.

The biggest advantage is the reduced burden of network usage fees. SOOP began actively utilizing grid technology in 2007. Currently, when watching high-definition content, grid technology is applied with the viewer's consent. Through this, the network usage fees, which were previously around 90 billion KRW, have been reduced to approximately 15 billion KRW.

As grid technology has become a crucial technology for reducing network usage fees, it can determine the success or failure of a business. Twitch, unable to apply the grid method, eventually withdrew from the domestic market citing the burden of network usage fees and other reasons. Industry insiders believe Twitch also attempted to use the grid method but failed due to a lack of know-how.

However, since the grid method temporarily turns viewers' computers into servers, issues such as lag or buffering may occur. In the past, some webhard companies secretly installed grid programs without notice or consent, using users' computers. Additionally, since these computers are used as temporary servers, there was a risk of hacking. To prevent these problems, when streaming stops, grid application is disabled, and technology is applied to ensure that a certain amount of computing resources are not excessively used.