Now that I am back in the office, I can go through my sent emails :)
"Microsoft hopes a new video downloading service will elevate the already popular game console to an entertainment center"
-- More on this article following this link.
So ... lets do some raw mathematics (don't come commenting on extraneous factors that could modify the formulas, this is just a guess, nothing more), 4 M xbox-live subscribers ... at 15 % penetration = 600K ... assume you cover 12 major time zones (US/Europe-Africa/East Asia-Australia) = 50K subscribers downloading per time zone @ 4Mbps per stream = 195 Gbps peak bandwidth capacity. I assume Microsoft content servers will peer with ISP's as penetration becomes higher in certain areas to reduce transit costs and download times. Noticeable is that this peak will probably be downloads of a couple of films that could be entirely cached by edge-proxies, reducing bandwidth utilization even further.
Now ... if you add the fact that with edgeware's technology you need only around 10 (based on 5,400 SDTV streams @3.7Mbps) x 1U servers (less than 1 rack of physical space and around 1KW of power) to supply all the content and bandwidth ! You are talking about very good economics for scaling a service, with low operational costs !
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