InterStream, LLC. was founded in 2002 to create an open settlement system for premium bandwidth delivery. Just as VISA® was formed as a joint venture of member banks, the InterStream settlement model delivers a system throughout the global Internet. This partnership encompasses the entertainment, streaming media, information technology, transit network supplier and broadband service provider industries using InterStream's media grid.  The association offers new financial benefits to all participants of this new broadband economy. Participants may act as commercial sponsors for open source media grid projects. Through the use of InterStream Credits, the association expects a vibrant new broadband economy to emerge as Internet television becomes a reality.

InterStream believes that escrowed settlement services are as fundamental to next generation premium service applications on the Internet as Domain Name Services (DNS) have been for current applications.

In any transaction, there has to be a neutral third party who clears the transaction. When buying house, we typically use an escrow agent and title company. When buying a car, typically a bank or credit company guarantees payment for the transaction. Having a third party guarantee or “clear” premium bandwidth transactions has not been necessary for best effort Internet services. However, premium bandwidth services, sold across an Internet exchange, require some form of settlement.  In order to truly scale premium service offerings worldwide, it is necessary to enable buyers and sellers of premium bandwidth services to be independent while trusting that both parties fulfill their contractual commitments.  InterStream's approach enables new levels of service through a sustained high quality connection end-to-end across the network.

Background

“How can people pay for premium Internet bandwidth when they need it?” This question formed the foundation for InterStream thinking in 2001. Any number of models have been proposed by other companies, and some have even been implemented. But each fails to deliver a solution that satisfies some basic market requirements. Today, we’re at the cross-roads of an opportunity, able to resolve this issue by evolving the market models used between content suppliers and the last-mile broadband providers.

Currently, even those consumers with the highest quality broadband connections are limited to “best effort” Internet delivery, which is not enough to enable DVD quality entertainment streamed into the family room. However, this is not a technology limitation, rather, it is an economic challenge. InterStream enables service providers and other participants in the broadband economy to receive their own per stream premium revenue in return for providing a premium delivery service to consumers.

Pundits cite prices and a lack of premium services as hindering broadband adoption. Service providers fear that providing premium services or reducing prices simply marginalizes their offering. The economics are broken. Clearly, the Internet requires an economic model that organically funds the expansion. The InterStream model does exactly that, by delivering a breakthrough combination of technology and economics. We now have the ability to stimulate broadband adoption by enabling profitable premium broadband experiences.

InterStream General Manager, Leonard Washington, has over 15 years of experience in the digital media and entertainment industry, having been president of Paramount Digital Entertainment (a Viacom Company) as well as technology companies such as TRW's Electronic Systems Group. InterStream founder, Jeff Turner is a veteran of Cisco Systems, Novell and Hewlett-Packard.

The company has filed patents both for the InterStream settlement system and transnational currency system. Additional technologies that enable Internet television will be available under from InterStream using "defensive Open Source" model for licensing.

Compelling Applications

The initial application for the InterStream model enables other companies to offer premium delivery of their highest-quality digital video entertainment (DVD and HDTV quality) to broadband connected consumers.

A premium delivery pathway enables a variety of new broadband applications. Some consumer applications may include high quality video conferencing, video gaming and fully interactive television. Premium bandwidth services also enable a range of business applications such as Storage Area Networking, large file transfers and virtual meetings.

The InterStream model creates an environment, stimulating the imagination of application developers in every industry to take advantage of this new found premium delivery capability.