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AccuStream Research: CDN Account Growth at 23.3% in 2009
Aug 14, 2009 (Close-Up Media via COMTEX) --
AccuStream Research reports that CDNs (Content Delivery Networks) are achieving another year of double-digit growth in 2009, writing new contracts at a 23.3 percent pace above 2008, powering top line revenue forecasts up 16.4 percent to $1.37 billion across the segment.
The U.S. market currently generates an estimated 55.8 percent of the global CDN total, though international traffic is now increasing at a faster rate than its domestic counterpart, according to an industry report by AccuStream Research.
The report, "CDN 2010: Revenue, R & D, Cap Ex and Operational Analytics," provides comprehensive market performance metrics for each CDN, including MRR, total accounts, revenue, servers, cap ex, R & D initiatives, share of and penetration into video content verticals (pro video views by site and category), video advertising, Internet radio and UGV.
In a year of steep bandwidth price declines at transit and retail provisioning levels, CDNs are managing margins by relentlessly driving down costs, focusing on network operations efficiencies even while pivoting toward the future: cap ex investment is forecast to rise 9.2 percent to $149 million in 2009.
R & D is targeting new and expanding business areas including whole site delivery, dynamic content, "live" video, HD, mobile/iPhone, non-PC devices, adaptive bit rate streaming, and support for Microsoft's Smooth Streaming solution.
Average MRR is forecast to fall for the first time in 2009, by 5.5 percent to $10,491. Bandwidth costs (transit, co-location, power) make up the largest component (65 percent) of each retail contract, 59 percent of COGS.
Of the 22.5 billion professional video views served in 2009, Akamai delivered 31.9 percent, Limelight Networks 12 percent and Level 3 11.2 percent.
Additional CDNs analyzed include CD Networks, Velocix, Liquid Compass, Abacast, Mirror Image, Edgecast Networks, Highwinds, BitGravity, Cotendo, and Internap, among others.
"2009 and 2010 are transformational years for CDNs," said AccuStream research director Paul A. Palumbo. "Sharp price declines have been met by aggressive cost reductions and beneficial increases in contract volume.
"We expect MRR growth to resume in 2010 as CDNs control more overage traffic, reduce exposure to under-performing accounts, and acquire dynamic object and advanced applications support business."
AccuStream Research reports published in 2009 analyze video views, video advertising networks, video CMS platforms, video indexing, metadata, CDN, and Internet radio.
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