Communications and Technology Industry Research

The global Content Delivery Network service industry could breach the $2 billion mark in annual billings by 2011 and this growth would spread after that time, according to a new In-Stat (News - Alert) report.  ‘Over-the-top’ Internet video is increasingly popular these days and the growth in CDNs is being widely viewed as a direct consequence of that.

CDNs are also growing in acceptability because they are dynamic and can provide content via various delivery mechanisms spanning across different device types. In-Stat said that data centers and CDNs could increase in importance when it comes to providing on-demand services. This would lead to a situation wherein users have more choice in programming and delivery channels and program creators can exercise better control over their work.

The recent study conducted by In-Stat revealed that IP networks will be able to provide a better level of user experience consuming lower bit rates using the Adaptive Bit Rate Video technique. The growth is CDN segment will be primarily fuelled by demand from North America up to 2013 and the region will continue to be the largest geographical segment for the industry. However, this does not preclude that fact that Europe and Asia Pacific regions would also witness exponential growth rates during the period.

In-Stat also advocated the use of accountable advertising with participation from all entities in the eco system to capitalize on the infrastructure layouts made. The study undertaken by In-Stat research, called “CDNs and Data Centers To Usurp Video-on-Demand,” analyses the global market for CDNs, data centers and video services. It also includes forecasts of how the global and regional CDN services market would fare right upto 2013, analysis of new business models and a brief overview of CDN and Data Center capabilities and its impact from the perspective of content providers, service operators and end users.

The study also includes a short profile of popular vendors like Akamai (News - Alert), Limelight Networks, DG Fastchannel, CD Networks, Level 3, Cotendo, Internap, Highwinds, CDN, Signiant, Cisco, Juniper Networks, Alcatel/Lucent, Ericsson, Adobe Systems, Microsoft, Apple, Real Networks, Intel, Inlet and Envivio (News - Alert). 

In-Stat has undertaken this research as part of its Multimedia Broadband Infrastructure service initiatives. It predicted that 92 percent of U.S. households will have broadband connectivity. This would make the Internet a vital channel for content distribution and service providers and networks are gearing up for this. It is becoming increasingly important that present business models accommodate interoperability for greater efficiency. In this regard asset management and transcoding will hold the key in mobilizing content across a multitude of devices spread across networks.