ICT Media

CDN MARKET GROWTH 2006 - 2009

  • ACC932
  • 385 Pages
  • July 2009
  • ICT Media

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


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