The multi routing concept can be explained with an example of a stream originating in the US and being consumed by 100 different listeners in different parts of Bangalore. Under the traditional method, each of the 100 listeners sends requests for the stream to the US-based server. The US server first makes 100 copies of the same stream and sends all of them across. Under multicast, each of the 100 listeners makes a request for the stream. The request is passed on from router to router until it reaches a router that already has the stream passing through it. The router then duplicates the stream by itself and sends one copy to the new client, instead of passing on the request for content further upstream to the server.

It is not widely deployed in the Internet due to practical issues associated with its operation; its implementation requires modifying existing routers functionality or replacing them. If there are multicast enabled routers in the network, they can be used as part of the server-to-clients paths for efficient bandwidth sharing. The biggest problem before implementing multicast solutions on the Internet is that the path from a server to a client usually crosses multiple networks owned by different companies As a result, unless all the companies enable at least some of their routers with the functionality, commercial models utilizing multicast will not be successful.

There is another technology that is more mature and has already seen considerable commercial action, is client-based multiplication. While multicasting uses the routers to multiply a stream, thus allowing a single stream to end up with millions of users, client-based multiplication achieves the same result by using the consumer’s terminal to multiply the stream.

Drawing heavily from the file-sharing or the peer-to-peer technology pioneered by the likes of Napster and Kazaa a decade ago, software providers like Joost, Livestation, Babelgum, Miro and TVU Player take the load off the server and turn users machines into mini-servers. The new types of Internet broadcasters utilize the distributed serving model of the traditional peer-to-peer networks, but have re-implemented it for live or streaming content.

Using this modified file-sharing technology, the companies have evolved four different business-models.
1. The application can be used to watch only the programs from one particular broadcaster.

2. The developer of the software acts as a content distributor, like a DTH-operator. Here, only those channels that are approved by the distributor are allowed, like in the case of Joost.

3. The technology provider does not control the content and users can start their own channels, like TVU.

4. Under this model, the application does not store content on user’s computers. The downside to this is that no video-on-demand is possible and the user can watch only live programs.
The ad-revenue is shared between the platform owner and the broadcaster.

In the coming years, IP-based systems, whether based on multicasting or client-based peer-to-peer networking, will become the norm rather than the exception for entertainment. There is a strong chance that the IP network could seriously undermine the current economic models around entertainment. In particular the question is around the value of watching entertainment in a linear way. As television struggles at offering a credible time-shifted service, more and more people will migrate to interactive platforms based on IP.