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Research and Markets: Essential Fact Based CDN and Bandwidth Services Report Detailing Market Growth for 2006 - 2009(M2 PressWIRE Via Acquire Media NewsEdge) RDATE:23072008 Dublin - Research and Markets (http://www.researchandmarkets.com/research/ec05e7/cdn_market_growth) has announced the addition of the "CDN Market Growth 2006 - 2009" report to their offering. A fact based CDN and bandwidth services report, complete with pricing, revenue, infrastructure deployment and operational analyses. Included are retail market calculations based on the volume model (gigabytes transferred), rate model (95th percentile for UGV, backhaul), R &D initiatives, total servers deployed, a break out of market segments sizes for video, audio, advertising, progressive download, Podcasting and download, market share by CDN, MRR (monthly recurring revenue), an analysis of media player format share. Top line report findings and analysis: - Total retail bandwidth contracts (including comparable costs to deliver streams, views from self hosting networks) yield a commercial market value estimate for the U.S. of $947 million in 2007 (including storage and other value add fees associated with accounts), and $1.25 billion in 2008, up 32% - The global CDN market is estimated at $1.7 billion in 2007, and forecast at $2.3 billion in 2008 (excluding self hosting networks, VASPs, stand alone VASPs, managed hosting providers and re-sellers) - A total of 5.1 billion hours of Internet music radio listening (including a la carte song plays, but excluding downloads) were analyzed from 2007 - CDNs delivered an estimated 28.8%, or 1.5 billion listening hours - A total of 22.4 billion views, or 68.8% of the professional market were handled through CDN contracts - MRR averaged $6,042 in 2007, up .8% from 2006, a year when many contracts were re-negotiated at more aggressive rates - MRR is forecast to rise by 7.6% in 2008, however as bandwidth costs continue to fall as a percentage of deal value, and value add services begin to be more fully factored into account contract analysis - Server deployments (media servers of all format types, excluding storage) rose by 46.8% in 2007 to 50,168 - The two dominant media player formats (Windows Media and Flash) are estimated to be at near market parity for 2007, following three years of rapid share growth momentum for Flash - There is a continued move toward Flash for new accounts, however live content, video advertising with assets that are typically streamed, not downloaded, and premium rights protected content are typically associated with Windows Media, and those segments are growing Executive Summary: CDN Revenue Climbs To $950 Million In 07, $1.25 Bil. Forecast In 08; Entertainment At 44% Share CDNs (Content Delivery Networks) generated $947 million in account revenue in 2007, forecast to grow by 32% in 08. Commercial market value (transit, retail, self-hosted delivery) for audio, video, streaming advertising, progressive download, Podcasting and download entertainment was worth $589.1 million in 2007, according to the multi-year sector analytics report CDN Market Growth 2006 2009. CDN delivery contracts for audio and video generated $404.1 million (retail and transit); media and entertainment captured 42.7% of that vertical. CDNs handled 68.8% of total professional video in 2007, 28% of Internet music ratio listening hours and 40% of UGV. Bandwidth related costs and charges are declining as a percent of total contract value (retail and wholesale), worth 60% of COGS for retail accounts in 2008, down from 65% in 2007, 70% in 2006, as CDNs blend in more value added services and sophisticated content management solutions. Bandwidth pricing and associated costs are dynamic and elaborate. The market continues to exhibit downward pricing pressure at both retail and transit layers; bandwidth is becoming a more commoditized service component. Some retail contract re-negotiations in 2007 and 2008 were finalized at more aggressive rates than those already factored into transit contracts, which had an impact on CDN margins, but there were also instances of lower transit pricing deals in advance of retail contract renewals. Thirteen CDNs analyzed increased total accounts by 29% in 07, ending the year at 6,772, and forecast to reach 8,402 in 2008. MRR was $6,042 in 2007, up slightly from 2006, including CDNs with specialties in audio delivery. MRR is forecast to increase by 7.6% in 2008. Servers in deployment (excluding storage) increased by 46.8% in 2007, forecast to increase by 37.1% in 2008. CDNs have focused R & D initiatives on getting more efficiency upwards of 50%--from server infrastructure, indicating fewer boxes will be deployed going forward. Windows Media and Flash are at media player share parity in 2008, following several years worth of rapid growth for the latter. Key Topics Covered: Companies Mentioned: - Abacast - Akamai - Edgecast - Entriq - Highwinds - Internap Network Services - Level 3 Communications - Limelight Networks - Liquid Compass - Mirror Image - Move Networks - Pando Networks - Panther Express - Peer App - Swarmcast - Velocix - Wowza Media Systems For more information visit http://www.researchandmarkets.com/research/ec05e7/cdn_market_growth CONTACT: Laura Wood, Senior Manager, Research and Markets Fax: +1 646 607 1907 (US) Fax: +353 1 481 1716 (Rest of World) e-mail: [email protected] ((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])). Copyright ? 2008 M2 Communications Ltd. |