The Hidden Cost of Unicast Video
- Media Distribution Inc
- Aug 31
- 2 min read
Updated: Oct 4
Since the COVID-19 era, remote video communications - via Zoom, Microsoft Teams, or Webex - have become central to enterprise operations. While subscription fees are fixed, the unsung expense lies in the network: delivering video via unicast across wired LAN, Wi-Fi, and the internet can strain capacity and inflate costs. Especially with employees returning to offices, network bottlenecks become a real concern, often prompting costly hardware upgrades and increased staffing needs.
Multicast is a more innovative alternative: within the corporate network, a single stream can be distributed to multiple recipients. Meanwhile, remote users still receive unicast streams over the Internet. This hybrid approach significantly reduces costs, congestion, and complexity.
Realistic CDN Cost Benchmarks
Kaltura’s VPaaS pay-as-you-go model prices bandwidth at approximately $0.17 per GB. This provides a realistic method for calculating enterprise video distribution costs at scale.
Scenario: 5,000 Employees, 5 Mbps Stream, 1 Hour
Total data per viewer: 5 Mbps × 3600 sec = 18,000 Mb = ~2,250 MB ≈ 2.25 GB per viewer.
Option A: Pure Unicast (all 5,000 remote)
Total data = 5,000 × 2.25 GB = 11,250 GB
Kaltura cost = 11,250 GB × $0.17 = $1,912 per event
Option B: Hybrid (3,000 In-Office via Multicast, 2,000 Remote via Unicast)
Internal: multicast delivers one 5 Mbps stream across the LAN (negligible cost regardless of 3,000 viewers)
Remote: 2,000 × 2.25 GB = 4,500 GB
Kaltura cost = 4,500 GB × $0.17 = $765 per event
Cost Comparison over Multiple Events (Kaltura Pricing)
Events/Year | Pure Unicast | Hybrid (Multicast + Unicast) | Savings |
1 | $1,912 | $765 | $1,147 |
5 | $9,562 | $3,825 | $5,737 |
10 | $19,125 | $7,650 | $11,475 |
25 | $47,812 | $19,125 | $28,687 |
50 | $95,625 | $38,250 | $57,375 |
100 | $191,250 | $76,500 | $114,750 |
(Calculation assumes 5 Mbps stream, 5,000 viewers for 1 hour, CDN egress at $0.17/GB.)
Beyond Cost: The Hidden Benefits
Network Relief: Avoid flooding LAN/WAN with redundant streams.
Hardware Savings: Delay or eliminate costly network upgrades.
IT Efficiency: Less firefighting during high-profile events.
Scalability: Multicast handles 500 to 50,000 viewers inside the office seamlessly.
Hybrid Flexibility: Optimized delivery for in-office and remote employees.
The Takeaway
Enterprises that rely purely on unicast delivery for large-scale video events are overspending. By adopting multicast within the corporate network while maintaining unicast for remote users, companies can dramatically reduce costs, scale efficiently, and avoid unnecessary infrastructure strain.
With employees back in the office, now is the time to rethink your video distribution strategy. The future of enterprise video isn’t unicast - it’s multicast where it counts.
