by Michael Grotticelli of VideoEdge /
06.09.2014 05:53 PM
CDN Revenue to Hit $3.3 Billion in 2014
Sector predicted to have double-digit growth through 2017
SEASIDE, CALIF.—Revenue generated by content delivery networks will be up 19 percent globally in 2014 to $3.36 billion as a result of increased video viewing among consumers according to AccuStream Research.
report, entitled “CDN 2014 – 2017: Operations and
Analytics,” divides the sector by media and publishing vertical,
provider, solutions, geographies, R & D, bytes delivered, global
revenue, product launches and partnerships. It also includes conversations with
senior executives, technology and sales professionals, who explain markets,
network topologies, capacity, solutions innovation, software, sales and account
AccuStream Research also states that the
CDN sector will enjoy double-digit growth through 2017, due to: 1) Bandwidth
pricing stability expanding topline while lowering COGS; 2) Marginal
performance paybacks; 3) Value added services addressing tech
complexities--accounts requiring quality, reach and security at
scale--deciphering media formats, device fragmentation and monetization tools
that improve MRR; and 4) Virtual video (including “live”
steaming, VOD, TV Everywhere deployment and the enterprise) is rapidly gaining
momentum with consumers.
The study also states that in 2103, the
total commercial value of media and entertainment video (views and
advertising), movie/TV files, music listening and downloads (including
self-hosting entities such as Google and Amazon) stood at $3.35 billion, of
which $1.05 billion (31.3 percent) was delivered through CDN contracts.
Video viewing and advertising (combining self-hosted networks), TV/movies
and music accounted for more than 2.4 billion gigabytes of data transfer, worth
$1.6 billion in commercial market value, when priced at prevailing rates and
against a volume (gigabytes delivered) model.
include Akamai Technologies, CDNetworks, ChinaCache, Cloudflare, Highwinds,
Level 3, Limelight Networks, MaxCDN, Mirror Image, and Tata Communications.