Summary
Marina, CA Content Delivery Networks (CDNs) posted $1.16 billion in 2008 revenue, notching 30% improvement over 2007. The U.S. market made up an estimated 57% of the global tally; combined geographies are forecast to grow at 19% in 2009.
Revenue attached to audiovisual verticals including professional video, video advertising, video advertising networks, CMS platforms, online music spins, UGV and podcasting totaled $550 million, or 47.3% of total billings, according to CDN Account Verticals and Revenue Performance 2006-2010, a rigorous analytics report.
Professional video (including advertising) remains the most penetrated and lucrative audiovisual vertical, with 76.2% of views delivered through CDN contracts.
Going the other way, 20.4% of lower margin UGV volume was handled by CDNs, plus another 31.7% of online music radio spins and track plays.
Large media combines such as Google's YouTube, AOL, Real Networks, Amazon, Yahoo and Comcast approach bandwidth provisioning as a core infrastructure precondition, taking that potential revenue base off the table.
Commercial market (retail and transit) value attending the delivery of audiovisual content (including self-hosted networks and CDN) was equivalent to $886 million in 2008, with bandwidth making up 60% of billable costs.
Bandwidth fees as a percentage of CDN contract value are forecast to tack downward through 2010. The report analyzes historical and current pricing and pricing models by contract type, including volume and rate alternatives.
Total media servers in deployment rose by 56.7% in 2008. Year end ’08 accounts under contract grew by 25% to 8,496.
Monthly recurring revenue (MRR) for the CDN group rose 1.8% in 2008 to $6,735, as the market pivots toward revenue growth linked more tightly to ROI-driven, value-added applications, reducing exposure to bandwidth commoditization.
Akamai (MRR up 21.4%) and Limelight Networks (MRR up 18.7%) significantly exceeded the CDN group MRR average.
"CDN content verticals and markets of opportunity are expanding as online experiences are transformed through a broadband medium powered by reach, scale and accountability," commented our research director.
"The infrastructure and application sophistication necessary to deliver broadband media continues to return healthy 50% - 65+% gross margins," he added.
Table of Contents
Executive Summary 1
Global and U.S. CDN Revenue Comparison: 2006-2010
CDN Market Revenue and Growth Rates: 2006-2010
Section One 5
Streaming Media Bandwidth Services Market Size and Growth Profile: 2006-2010 5
Terminology Definitions 5
Retail Market Comparisons: Streaming, Progressive Download and Download
Media 5
Global and U.S. CDN Revenue Comparison: 2006-2010 6
CDN Worldwide and U.S. Market Size: 2006-2010 7
U.S. Market Dominance 2006-2010 7
Global CDN Market Value (Retail and Self Hosting Delivery) 8
Commercial Bandwidth Market Value: Audio/Video 2006-2010 9
Bandwidth Provisioning: U.S. Commercial Market Value Audio/Video 2006-2010 10
Bandwidth Cogs Analysis: 2006-2010 10
Bandwidth Percent of COGS and Retail Contract Value: 2006-2008 11
Continued Downward Pressure On Transit and Retail Bandwidth Contracts in
2008-2009 (U.S.) 11
Retail Contract Pricing: 2006-2008 12
Retail Contract Pricing: Gigabyte Delivery and Annual Unit Declines 13
Retail Pricing: Mbps Delivery and Annual Unit Declines 14
Annual Pricing Comparison: Retail Versus Transit 2006-2008 15
Retail versus Transit Cost Decline Trends Comparison: 2006-2008 16
Annual Pricing Percent Change Comparison Retail vs. Transit 2006-2008 17
Retail and Transit Bandwidth Cost Declines: 2006-2008 17
Video Continues To Pace the Market 17
Streaming/HTTP Content Category Share: Commercial Market Value 2006-200818
Streaming/HTTP Content Category Provisioning Value: 2006-2008 18
Media and Entertainment Market Value: CDN Segment 2006-2008 18
Media and Entertainment Percent CDN Revenue: 2006-2008 19
2006 20
Commercial Market Bandwidth Breakout: By Category 2006 20
CDN Bandwidth Services Category Share: 2006 Mid Range Estimate 21
Internet Radio: Bandwidth Services Analysis And Market Size 24
Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 25
Streaming Video: Entertainment Bandwidth Services Analysis and Market Size 26
Streaming Video: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 27
User Generated Video Pricing and Market Analysis: 95th Percentile Estimates 28
User Generated Video Backhaul Pricing and Market Analysis (95th Percentile
Analysis) 29
Streaming Video Advertising: Pre Roll Backhaul Bandwidth Services Market Size
(95th Percentile Analysis) 31
Embedded Video Advertising: Bandwidth Services Analysis and Market Size 32
Embedded Video Advertising: Backhaul Bandwidth Services Market Size (95th
Percentile Analysis) 33
Download Bandwidth Services Analysis and Market Size 34
Download Backhaul Bandwidth Services Market Size (95th Percentile Analysis) 35
Podcasting Bandwidth Services Analysis and Market Size 36
Podcasting Backhaul Bandwidth Services Market Size (95th Percentile Analysis) 37
2007 38
Commercial Market Bandwidth Breakout: By Audio/Video Category 2008 (Retail
Value) 39
CDN Bandwidth Services Category Share: 2007 Mid Range Estimate 40
Internet Radio: Bandwidth Services Analysis And Market Size 42
Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 43
Streaming Video: Entertainment Bandwidth Services Analysis And Market Size 44
Streaming Video: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 45
User Generated Video Pricing and Market Analysis: 95th Percentile Estimates 46
User Generated Video Backhaul Pricing And Market Analysis (95th Percentile
Analysis) 47
Streaming Video Advertising: Pre Roll Bandwidth Services Analysis and
Market Size 48
Streaming Video Advertising: Pre Roll Backhaul Bandwidth Services Market Size
(95th Percentile Analysis) 49
Embedded Video Advertising: Bandwidth Services Analysis and Market Size 50
Embedded Video Advertising: Backhaul Bandwidth Services Market Size (95th
Percentile Analysis) 51
Download Bandwidth Services Analysis and Market Size 52
Download Backhaul Bandwidth Services Market Size (95th Percentile Analysis)53
Podcasting Bandwidth Services Analysis and Market Size54
Podcasting Backhaul Bandwidth Services Market Size (95th Percentile Analysis) 55
2008 56
Commercial Market Bandwidth Breakout: By Audio/Video Category 2008 (Retail
Value) 56
CDN Bandwidth Services Category Share: 2008 Mid Range Estimate 57
Internet Radio: Bandwidth Services Analysis And Market Size 59
Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 60
Streaming Video: Entertainment Bandwidth Services Analysis and Market Size 61
Streaming Video: Backhaul Bandwidth Services Market Value (95th Percentile
Analysis) 62
User Generated Video Pricing And Market Analysis: 95th Percentile Estimates 63
User Generated Video Backhaul Pricing and Market Analysis (95th Percentile
Analysis) 64
Streaming Video Advertising: Pre Roll Bandwidth Services Analysis and Market
Size 65
Streaming Video Advertising: Pre Roll Backhaul Bandwidth Services Market
Size (95th Percentile Analysis) 66
Embedded Video Advertising: Bandwidth Services Analysis and Market Size 67
Embedded Video Advertising: Backhaul Bandwidth Services Market Size (95th
Percentile Analysis) 68
Download Bandwidth Services Analysis and Market Size 69
Download Backhaul Bandwidth Services Market Size (95th Percentile Analysis) 70
Podcasting Bandwidth Services Analysis and Market Size 71
Podcasting Backhaul Bandwidth Services Market Size (95th Percentile Analysis) 72
Section Two 73
Internet Music Radio: A CDN Market Overview 2008 73
Delivery Market Share Analysis: Bandwidth Year 2008--Internet Music Radio 74
Bandwidth Delivery Share: Internet Music Radio 2008 75
CDN Delivery Share: Internet Music Radio 2008 76
Internet Music Radio: 2008 77
Professional Online Video: A Market Overview 2008 93
Delivery Market Share Analysis: Bandwidth Year 2008--Professional Video93
Bandwidth Market Share: Professional Video 2008 94
CDN Delivery Share: Professional Video 2008 95
Professional Video Content and Brand Publishing: 2008 96
Hosted Network/UGV Video: A Market Overview 2008 206
Delivery Market Share Analysis: Bandwidth Year 2007-UGV 206
Bandwidth Market Share: User Generated/Hosted Video 2008 207
CDN Delivery Share: User Generated/Hosted Video 2008 207
UGV Video Content and Hosted Brand Publishing: 2008 208
Internet Music Radio: CDN Overview 2008 229
Bandwidth Delivery Share: Internet Music Radio 2008 229
CDN Delivery Share: Internet Music Radio 2008 229
Internet Music Radio: 2008 230
Online Video Market Overview 2008 236
Delivery Market Share Analysis: Bandwidth Year 2008 236
Bandwidth Market Share: User Generated/Hosted Video 2008 237
CDN Delivery Share: User Generated/Hosted Video 2008 237
Professional Video Content and Brand Publishing: 238
Hosted Network/UGV Market Overview 2008 277
Delivery Market Share Analysis: Bandwidth Year 2008-UGV 277
Bandwidth Market Share: User Generated/Hosted Video 2008 278
CDN Delivery Share: User Generated/Hosted Video 2008 278
UGV Video Content And Hosted Brand Publishing: 2008279
Section Three286
CDN Revenue, Contract Analytics, Infrastructure Deployments and Media
CDN Market Revenue Analysis: 2003-2010 286
CDN Market Revenue and Growth Rates: 2004-2010 287
CDN Annual Accounts: 2005-2008 288
CDN Accounts: Year End 2005-2008 288
CDN Revenue and Account Growth Rates 289
CDN Revenue and Account Growth Rate Comparison: 2006-2008 290
CDN Monthly Recurring Revenue Analysis: 2005-2008 291
CDN Monthly Recurring Revenue: 2005-2008 291
CDN Media Server Deployment: 2005-2008 292
CDN Total Media Server Deployments: 2005-2008 292
