Overview
In a forward-thinking initiative aimed at enhancing video encoding efficiency, one of our esteemed clients transitioned from exclusively using the H.264 codec to incorporating H.265 and AV1 codecs as well. This client chose to encode only their most frequently viewed content. Their video repository included 38,857 titles, each with an average length of 24 minutes and available in up to four distinct formats. It was noted that approximately 70% of the client's total CDN bandwidth was consumed by just 5051 (13%) of these videos, which were naturally the most popular ones in their collection.
Implementation and Expenses
As of November 2023, the client's data traffic averaged 55.8Gbps. The decision was made to encode these 5,051 top-performing videos using the more efficient H.265 and AV1 codecs. The compression rates achieved were 48% for H.265 and an impressive 64% for AV1. Leveraging Slashed.cloud's encoding services, the entire batch of videos was processed within a single day, and with thorough preparation by the client's development team, the videos were ready for streaming shortly thereafter. The total investment for encoding these videos in both H.265 and AV1 across various resolutions amounted to €31,640.26.
Outcomes
By January 2024, the client had implemented H.265 and AV1 codecs for their most viewed videos, leading to a significant bandwidth reduction of 41% from the initial 55.8Gbps down to 32.8Gbps. While specific CDN metrics and cost details were withheld, the client highlighted a crucial point: the savings on CDN expenses over a year were projected to fully cover the encoding costs.
Concluding Insights
Opting to encode only the most popular videos in H.265 and AV1, while maintaining the rest in H.264, proved to be a wise and economical strategy. This approach not only yielded considerable cost benefits but also set the stage for future enhancements in video encoding technologies. By January 2024, this strategy had already resulted in a 23 Gbps bandwidth reduction, translating to a 41% decrease in CDN bandwidth usage within a month for just €31,640.26 and reaching ROI in 1 year.
The cost-effectiveness of SlashedCloud's services, notably priced at approximately ten times less than the least expensive competitor in the market, was instrumental in the successful realization and return on investment of this encoding strategy.
At SlashedCloud, we are committed to providing solutions that strike the perfect balance between efficiency, cost-effectiveness, and forward compatibility. For more information or inquiries, please feel free to connect with us via our contact page.
Best regards,
The SlashedCloud Development Team
