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Content Delivery Networks Business Transformation and Market Analytics 2012-2014 Product Image

Content Delivery Networks Business Transformation and Market Analytics 2012-2014

  • Published: December 2011
  • Region: Global, United States
  • 329 Pages
  • AccuStream iMedia Research

FEATURED COMPANIES

  • 3crowd Technologies
  • Alcatel-Lucent
  • Cachefly
  • Cotendo
  • Edgecast
  • Internap
  • MORE

U.S.-based CDNs (Content Delivery Networks) are tenaciously adapting their technologies, services, account and business strategies to address new markets of opportunity, concurrently improving top line revenue by 17.7% in 2011 to $1.86 billion, an estimated 65% of the global total. In response to, and in anticipation of, the market's rapid evolution and appetite for delivery efficiency, reach and scale, CDNs have channeled R & D investments and global sales initiatives into value added services (i.e. site and application acceleration, content transformation, cloud, analytics, mobile and workflow). Moreover, CDNs are actively licensing technology appliances and software into carrier class networks globally, and cutting more reseller deals to maximize infrastructure IP and the bit expertise inherent in their distributed networks. This thoroughly researched report reveals 49.7% of sector revenue was generated from media and entertainment accounts, including professional video, UGC video, streaming music, video advertising and mobile video, along with movie, TV, music and podcast downloads. Each category is analyzed utilizing AccuStream's comprehensive and proprietary media consumption READ MORE >

EXECUTIVE SUMMARY

CDN Market Performance Dynamics and Business Trends 2011 – 2014

CDN revenues estimated at $1.86 billion in 2011, 65.6% of the global total

Global CDN Market Value: 2006 – 2011

CDN Revenue Growth Rates: 2004 – 2012

Retail contracts continue to grow at double-digit rates

The differential between account growth and revenue growth is narrowing as value add solutions contribute to the top line

CDN Revenue and Account Growth Rate Comparison: 2006 – 2011

Server deployment growth rates are consistently higher than account growth rates

Server Deployment And Account Growth Comparison: 2006 – 2011

Retail contract pricing for bandwidth exhibited a slower rate of decline in 2011 compared to 2010 and 2009

Retail Contract Pricing: Gigabyte Delivery and Annual Unit Declines 2006 – 2011

CDN TERMINOLOGY DEFINITIONS

SECTION ONE

Introduction and 2011-2014 Overview

CDN Sector Embraces a Phase of Re-Invention, Re-Positioning and Business Transformation

CDN Market Performance Dynamics and Business Trends 2011 – 2014

CDN Revenue, Market Share, Account Growth and Cap Ex Analytics

CDN Annual Accounts: 2005 - 2011

CDN Account Share: 2010 - 2011

CDN Revenue 2010 - 2011

CDN Cap Ex Investment: 2007 – 2011

CDN Market Revenue Analysis: 2003 - 2014

CDN Monthly Recurring Revenue Analysis: 2005 – 2011

Media and Entertainment Percent CDN Revenue: 2006 – 2011

CDN Market Pricing, Discounting and Streaming Media Encode Rates

CDN Revenues Estimated at $1.86 Billion in 2011, 65.6% of the Global Total

Global CDN Market Value (Delivered by Domestic vs. International CDNs)

CDN Revenue Growth Rates Historically Accelerate Through the Year

CDN Revenue 2010 - 2011

Retail Contracts Continue to Grow at Double-Digit Rates

CDN Annual Accounts: 2005 - 2011

The Differential Between Account Growth and Revenue Growth is Narrowing As
Value Add Solutions Contribute to the Top Line

CDN Revenue and Account Growth Rates: 2006 - 2011

CDN MRR Averages $9,210 in 2011

CDN Monthly Recurring Revenue Analysis: 2005 – 2011

Entertainment and Media Accounted for 49.7% CDN Revenue in 2011

Entertainment Media Revenue Share of CDN Market: 2006 - 2011

Media and Entertainment CDN Contract Value Closing in on $1 Billion in 2011

Total Media and Entertainment CDN Contract Value: 2006 - 2011

CDN Sever Deployments Increased by 30% in 2011

CDN Media Server Deployment: 2005 - 2011

2011 Cap Ex Investment Estimated at a 72% Increase Over 2010

CDN Cap Ex Investment: 2007 - 2011

Server Deployment Growth Rates are Consistently Higher than Account Growth Rates

Cap Ex Analysis: Server Deployments and Account Growth

U.S.-Based CDNs Captures 65.6% of Global Revenue in 2011

CDN Global Market Value Comparison: 2006 - 2011

Commercial Market Value for Audio and Delivery Estimated at $1.1 Billion in 2011

Commercial Bandwidth Market Value: Audio/Video 2006 - 2011

Professional Video Remains the Largest CDN and Commerical Market Value Content

Vertical

Streaming/HTTP Content Category Share: Commercial Market Value 2006 - 2011

CDN Bandwidth Services Category Share: 2010

CDN Bandwidth Services Category Share: 2011

COGS and Retail Contract Analysis Indicate CDN Gross Margins, While Healthy, are Nevertheless Lower for the Core Bandwidth Side of the Business

CDN Bandwidth Costs, Contract and COGS Analysis: 2006 - 2011

Retail Contract Pricing for Bandwidth Exhibited a Slower Rate of Decline in 2

Compared to 2010 and 2009

Retail Contract Pricing: 2006 - 2011

Retail Contract Pricing: 2006 - 2011

Pricing Declines for Retail Contracts are in Equilibrium with Those Seen in the

Wholesale Business in 2011

Annual Pricing Comparison: Retail Versus Transit 2006 - 2011

SECTION TWO

Entertainment and Media: Bandwidth Provisioning and Commercial Market Value

Analytics 2011

Retail Commercial Market Value of Media and Entertainment Estimated at $1.3 Billion in 2011

CDN Bandwidth Services Category Share: 2011
CDN Bandwidth Services Category Share: 2010

Professional Video Content Categories Including Advertising Networks and Download

Media are Highly Penetrated by CDNs

2011 Full Year Estimates: Bandwidth Services Analysis by Content Vertical

Online Music Listening Hours per Month Average 1.51 Billion in 2011 (Including

Individual Track Plays)

Online/Mobile Music and Track Play Listening Hours: Bandwidth Services Analysis and Market Size

Online/Mobile Music and Track Plays: Bandwidth Services Analysis and Market Size

Professional Video Averaged 7.64 Billion Views per Month in 2011, with an Average of 600+ Kbps Encode Rate

Online Video: Professional Entertainment and Media Bandwidth Services Analysis and Market Size

UGC Views are Averaged an Estimated 24.6 Billion per Month in 2011

UGC Video Pricing and Market Analysis: 95th Percentile Analysis

Pre Roll Advertising As a Media Type and Marketing Vehicle Has Expanded
Dramatically Over the Past Two Years; There is Now an Average of 13.8 Billion
Pre Roll Ads Delivered per Month in 2011/2012

Advertising: Pre Roll Video Bandwidth Services Analysis and Market Size

In-Page Video Impressions Averaged an Estimated 32.4 Billion Delivered per Month in 2011

In-Page Video Advertising: Bandwidth Services Analysis and Market Size

Music Downloads Were an Estimated 6.5 Billion Units in 2011; Movie and TV Show
Downloads at 242 Million

Download Bandwidth Services Analysis and Market Size

Mobile Video and Video Advertising Views Average 3.6 Billion per Month in 2011
(U.S. Only, Excluding International Views, Which Account For Approximately 73% of YouTube Total Views)

Mobile Video: Bandwidth Services Analysis and Market Size

Podcast Downloads (Audio and Video) are Forecast at 8.9 Billion in 2011

Podcasting Bandwidth Services Analysis and Market Size

Transit Commercial Market Value Analysis: 2011

Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile Analysis)

Professional Video: Transit Bandwidth Services Market Value (95th Percentile Analysis)

User Generated Video Transit Pricing and Market Analysis (95th Percentile Analysis)

Video Advertising: Pre Roll Transit Bandwidth Services Market Size (95th Percentile Analysis)

In-Page Video Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis)

Download Transit Bandwidth Services Market Size (95th Percentile Analysis)

Mobile Video Views and Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis)

Podcasting Transit Bandwidth Services Market Size (95th Percentile Analysis)

SECTION THREE

CDN Revenue, Account Share and Operational Analytics

CDN Revenue is Estimated at $1.86 Billion in 2011

CDN Market Revenue Analysis: 2003 - 2014

Akamai Generates 63.2% of Segment Revenue in 2011

CDN Revenue 2010 - 2011

Akamai Powers 20% of Total Unique CDN Accounts in 2011; Edgecast 15.5%

CDN Account Share: 2010 - 2011

CDN Accounts Number 20,045 at Year End 2011

CDN Annual Accounts: 2005 - 2011

CDN Account Growth and Revenue Growth Differential Narrows Substantially in 2011

CDN Revenue and Account Growth Rates: 2006 - 2011

MRR Rebounds in 2011, Up 17.6% Over 2010

CDN Monthly Recurring Revenue Analysis: 2005 - 2011

CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure

Profile and Analysis 2003 – 2014 (Part 1)

CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure

Profile and Analysis 2003 - 2014 (Part 2)

CDN COGS and Marginal Analysis: 2011

Server Deployments Increased by 30% in 2011

CDN Media Server Deployment: 2005 - 2011

Cap Ex Analysis: Server Deployments and Account Growth

SECTION FOUR

Pro Video Delivery Ranked by CDN Contract/Vendor 2010

CDN/Bandwidth Provisioning 2010

Professionally Produced and Distributed Video: CDN Provisioning 2010

Pro Video Delivery Ranked by CDN Contract/Vendor 2011

Professionally Produced and Distributed Video: CDN Provisioning 2011 Half Year

Analysis

SECTION FIVE

UGC is a Highly Concentrated Content Segment, Predominately Self-Hosted

UGC Video Publishing and Bandwidth Provisioning 2010: CDN Contract Share

UGC Video: 2011

UGC Video Publishing and Bandwidth Provisioning 2011 YTD: CDN Contract Share

UGC and Social Media Video: CDN Contracts 2011 YTD

SECTION SIX

Online/Mobile Music Listening and Song Play Hours Dominated by Pandora and

Shoutcast, Two Self-Hosted Brands

Online/Mobile Music Listening Hours by Bandwidth Provider: 2010

Online/Mobile Music Listening and Song Play Hours 2011

Online/Mobile Music Listening Hours by Bandwidth Provider: 2011 YTD

Internet Music Radio Listening Hours and Bandwidth Provisioning: 2011

SECTION SEVEN

Q & A's

3CROWD TECHNOLOGIES

AKAMAI TECHNOLOGIES

ALCATEL-LUCENT

BITGRAVITY

CACHEFLY

CDNETWORKS

COTENDO

DACAST

EDGECAST

HIGHWINDS

INTERNAP

LEVEL 3

LIMELIGHT NETWORKS

LIQUID WEB

MIRROR IMAGE

PANDO NETWORKS

WOWZA MEDIA SYSTEMS

Accustream Research: CDNs Embrace Dynamic Product And Business Transformation; New Services Essential To Double-Digit Growth In Revenue And Customer Additions

U.S.-based CDNs (Content Delivery Networks) are tenaciously adapting their technologies, services, account and business strategies to address new markets of opportunity, concurrently improving top line revenue by 17.7% in 2011 to $1.86 billion, an estimated 65% of the global total.

In response to, and in anticipation of, the market's rapid evolution and appetite for delivery efficiency, reach and scale, CDNs have channeled R & D investments and global sales initiatives into value added services (i.e. site and application acceleration, content transformation, cloud, analytics, mobile and workflow).

Moreover, CDNs are actively licensing technology appliances and software into carrier class networks globally, and cutting more reseller deals to maximize infrastructure IP and the bit expertise inherent in their distributed networks, according to a sector report by AccuStream Research.

The report, CDN Business Transformation and Market Analytics 2012 - 2014, reveals 49.7% of sector revenue was generated from media and entertainment accounts, including professional video, UGC video, streaming music, video advertising and mobile video, along with movie, TV, music and podcast downloads.

Each category is analyzed utilizing AccuStream's media consumption databases, calculated against byte/bit pricing, yielding percent of contract value made up of core bandwidth services.

As bandwidth prices continue to decline, revenue growth (forecast at 20% through 2014) is predicated on CDNs selling more solutions per unique account, and reflected in improved sector MRR for 2011.

CDN direct and indirect accounts combined reached 20,045 (up 19.2%), averaging $9,210 in MRR for the year, a 17.6% increase over 2010, and the first uptick since the sector squeezed out a 5.6% gain in 2008.

CDNs analyzed include Akamai Technologies, Limelight Networks, BitGravity, CDNetworks, EdgeCast, Mirror Image, Level 3, Internap, Highwinds, Cachefly, Cotendo, new disruptive pricing entrant 3Crowd Technologies, among others.

The report includes detailed analyses of server infrastructure, gigabytes delivered by content category, cap ex, transit and retail pricing, billing models, account share by content vertical, plus extensive Q & A's with the sector's leading management, technology and sales talent.

- 3crowd Technologies

- Akamai Technologies

- Alcatel-Lucent

- Bitgravity

- Cachefly

- Cdnetworks

- Cotendo

- Dacast

- Edgecast

- Highwinds

- Internap

- Level 3

- Limelight Networks

- Liquid Web

- Mirror Image

- Pando Networks

- Wowza Media Systems

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