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%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% to $10,491. Bandwidth costs (transit, co-location, power) make up the largest component (65%) of each retail contract, 59% of COGS.
Of the 22.5 billion professional video views served in 2009, Akamai delivered 31.9%, Limelight Networks 12% and Level 3 11.2%.
Additional CDNs analyzed include CD Networks, Velocix, Liquid Compass, Abacast, Mirror Image, Edgecast Networks, Highwinds, BitGravity, Cotendo, Internap among others.
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“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, acquire dynamic object and advanced applications support business
Experts have studied this market on the backdrop of providing detailed information on the market’s trend, revenue share, and growth prospects from 2010.
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