The formula behind the numbers
Streaming cost is driven by data delivered. One viewing hour at 1 Mbps transfers 0.45 GB (3,600 seconds ÷ 8 bits per byte ÷ 1,000). So the monthly total is:
viewers × watch hours × average bitrate × 0.45 = GB per month
Multiply by your CDN price per GB for delivery cost. Storage is smaller: each hour of catalog is stored once for every rendition in your adaptive bitrate ladder.
What moves your bill
- Quality mix. A 4K hour costs about 10× an SD hour. Defaulting mobile users to 720p can cut costs sharply with little visible loss.
- Codec. HEVC and AV1 deliver similar quality at lower bitrates. See the video bitrate calculator for recommended ladders.
- Region and volume. CDN prices differ by continent and drop with committed volume.
- Live peaks. Live events add data and also need capacity for the peak moment, not just the average.
Put delivery cost in context
Delivery is usually a small share of revenue once you price correctly. Compare your cost per viewer with revenue per user in the OTT revenue calculator, and read our live streaming player guide for how players and formats affect delivery.