Big Market Research publishes a latest report on CDN 2010 – 2012.This report is expected to highlight important factors in the market which would help market participants to design result-oriented strategies and drive crucial business insights
The report, CDN 2011, shows 8.2% revenue growth in 2009 was accompanied by 25% account expansion, though not sufficient to overcome sharp declines in retail bandwidth pricing.
The U.S. market currently accounts for 55.6% of the $2.7 billion global CDN revenue total. Major providers like Akamai and Limelight Networks generate up to 30% of revenue through international contracts.
Additional CDNs analyzed in the report include Abacast, BitGravity, CDNetworks, CacheFly, Edgecast, Internap, Level 3, Cotendo, Mirror Image and Highwinds, among others.
Wholesale bandwidth costs continue to decline as a percentage of COGs, while retail prices are stabilizing. Moreover, considerably more bytes are being delivered to an expanding universe of fixed and mobile devices.
Combined, those market trends are expected to improve both CDN gross margins and produce double-digit top line increases through 2012.
MRR across the sector is forecast to decline by 8% in 2010 (to $8,108), however, following a 13.6% drop in 2009. Bandwidth, co-location and power continue to make up the largest COGS components and each retail contract dollar.
Solutions diversification (including site acceleration, adaptive bit rate streaming--which increases viewing time, combined with less emphasis on bandwidth overage fees billed by CDNs--plus tighter integration with OVPs for publishing standardization, automation and monetization support) are expected to beneficially impact MRR.
The report’s analytics and extensive Q & A’s focus on transit and retail pricing, underlying market forces, billing models by content vertical (i.e. pro and UGC video), account type (including audio, video, dynamic site acceleration, advertising and download media), CAP EX (up 24.8% in ‘10), servers deployed, R & D, mobile initiatives, strategic imperatives, partnerships, and the impact of cloud computing.
Experts have studied this market on the backdrop of providing detailed information on the market’s trend, revenue share, and growth prospects from 2010 to 2012.
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This report would throw insights into following areas:
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