U.S.-based CDNs (Content Delivery Networks) are tenaciously adapting their technologies, services, account and business strategies to address new markets of opportunity, concurrently improving top line revenue by 17.7% in 2011 to $1.86 billion, an estimated 65% of the global total.
As bandwidth prices continue to decline, revenue growth (forecast at 20% through 2014) is predicated on CDNs selling more solutions per unique account, and reflected in improved sector MRR for 2011.
CDN direct and indirect accounts combined reached 20,045 (up 19.2%), averaging $9,210 in MRR for the year, a 17.6% increase over 2010, and the first uptick since the sector squeezed out a 5.6% gain in 2008.
CDNs analyzed include Akamai Technologies, Limelight Networks, BitGravity, CDNetworks, EdgeCast, Mirror Image, Level 3, Internap, Highwinds, Cachefly, Cotendo, new disruptive pricing entrant 3Crowd Technologies, among others.
TABLE OF CONTENTS:
| EXECUTIVE SUMMARY | 1 | ||
| CDN Market Performance Dynamics and Business Trends 2011 – 2014 | 1 | ||
| CDN revenues estimated at $1.86 billion in 2011, 65.6% of the global total | 1 | ||
| Global CDN Market Value: 2006 – 2011 | 2 | ||
| CDN Revenue Growth Rates: 2004 – 2012 | 3 | ||
| Retail contracts continue to grow at double-digit rates | 3 | ||
| The differential between account growth and revenue growth is narrowing as value add solutions contribute to the top line | 3 | ||
| CDN Revenue and Account Growth Rate Comparison: 2006 – 2011 | 4 | ||
| Server deployment growth rates are consistently higher than account growth rates | 4 | ||
| Server Deployment And Account Growth Comparison: 2006 – 2011 | 5 | ||
| Retail contract pricing for bandwidth exhibited a slower rate of decline in 2011 compared to 2010 and 2009 | 5 | ||
| Retail Contract Pricing: Gigabyte Delivery and Annual Unit Declines 2006 – 2011 | 6 | ||
| CDN TERMINOLOGY DEFINITIONS | 7 | ||
| SECTION ONE | 9 | ||
| Introduction and 2011-2014 Overview | 9 | ||
| CDN Sector Embraces a Phase of Re-Invention, Re-Positioning and Business Transformation | 9 | ||
| CDN Market Performance Dynamics and Business Trends 2011 – 2014 | 10 | ||
| CDN Revenue, Market Share, Account Growth and Cap Ex Analytics | 12 | ||
| CDN Annual Accounts: 2005 - 2011 | 12 | ||
| CDN Account Share: 2010 - 2011 | 13 | ||
| CDN Revenue 2010 - 2011 | 14 | ||
| CDN Cap Ex Investment: 2007 – 2011 | 14 | ||
| CDN Market Revenue Analysis: 2003 - 2014 | 15 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 – 2011 | 16 | ||
| Media and Entertainment Percent CDN Revenue: 2006 – 2011 | 17 | ||
| CDN Market Pricing, Discounting and Streaming Media Encode Rates | 17 | ||
| CDN Revenues Estimated at $1.86 Billion in 2011, 65.6% of the Global Total | 18 | ||
| Global CDN Market Value (Delivered by Domestic vs. International CDNs) | 21 | ||
| CDN Revenue Growth Rates Historically Accelerate Through the Year | 21 | ||
| CDN Revenue 2010 - 2011 | 21 | ||
| Retail Contracts Continue to Grow at Double-Digit Rates | 22 | ||
| CDN Annual Accounts: 2005 - 2011 | 23 | ||
| The Differential Between Account Growth and Revenue Growth is Narrowing As Value Add Solutions Contribute to the Top Line | 24 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2011 | 26 | ||
| CDN MRR Averages $9,210 in 2011 | 26 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 – 2011 | 27 | ||
| Entertainment and Media Accounted for 49.7% CDN Revenue in 2011 | 29 | ||
| Entertainment Media Revenue Share of CDN Market: 2006 - 2011 | 31 | ||
| Media and Entertainment CDN Contract Value Closing in on $1 Billion in 2011 | 31 | ||
| Total Media and Entertainment CDN Contract Value: 2006 - 2011 | 32 | ||
| CDN Sever Deployments Increased by 30% in 2011 | 32 | ||
| CDN Media Server Deployment: 2005 - 2011 | 33 | ||
| 2011 Cap Ex Investment Estimated at a 72% Increase Over 2010 | 33 | ||
| CDN Cap Ex Investment: 2007 - 2011 34 | 34 | ||
| Server Deployment Growth Rates are Consistently Higher than Account Growth Rates | 34 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 36 | ||
| U.S.-Based CDNs Captures 65.6% of Global Revenue in 2011 | 36 | ||
| CDN Global Market Value Comparison: 2006 - 2011 | 37 | ||
| Commercial Market Value for Audio and Delivery Estimated at $1.1 Billion in 2011 | 37 | ||
| Commercial Bandwidth Market Value: Audio/Video 2006 - 2011 | 39 | ||
| Professional Video Remains the Largest CDN and Commerical Market Value Content Vertical | 36 | ||
| Streaming/HTTP Content Category Share: Commercial Market Value 2006 - 2011 | 41 | ||
| CDN Bandwidth Services Category Share: 2010 | 42 | ||
| CDN Bandwidth Services Category Share: 2011 | 43 | ||
| COGS and Retail Contract Analysis Indicate CDN Gross Margins, While Healthy, are Nevertheless Lower for the Core Bandwidth Side of the Business | 44 | ||
| CDN Bandwidth Costs, Contract and COGS Analysis: 2006 - 2011 | 46 | ||
| Retail Contract Pricing for Bandwidth Exhibited a Slower Rate of Decline in 2011 Compared to 2010 and 2009 | 46 | ||
| Retail Contract Pricing: 2006 - 2011 | 46 | ||
| Retail Contract Pricing: 2006 - 2011 | 47 | ||
| Pricing Declines for Retail Contracts are in Equilibrium with Those Seen in the Wholesale Business in 2011 | 49 | ||
| Annual Pricing Comparison: Retail Versus Transit 2006 - 2011 | 51 | ||
| SECTION TWO | 53 | ||
| Entertainment and Media: Bandwidth Provisioning and Commercial Market Value Analytics 2011 | 53 | ||
| Retail Commercial Market Value of Media and Entertainment Estimated at $1.3 Billion in 2011 | 53 | ||
| CDN Bandwidth Services Category Share: 2011 | 54 | ||
| CDN Bandwidth Services Category Share: 2010 | 56 | ||
| Professional Video Content Categories Including Advertising Networks and Download Media are Highly Penetrated by CDNs | 58 | ||
| 2011 Full Year Estimates: Bandwidth Services Analysis by Content Vertical | 60 | ||
| Online Music Listening Hours per Month Average 1.51 Billion in 2011 (Including Individual Track Plays) | 60 | ||
| Online/Mobile Music and Track Play Listening Hours: Bandwidth Services Analysis and Market Size 61 | 61 | ||
| Online/Mobile Music and Track Plays: Bandwidth Services Analysis and Market Size | 62 | ||
| Professional Video Averaged 7.64 Billion Views per Month in 2011, with an Average of 600+ Kbps Encode Rate | 63 | ||
| Online Video: Professional Entertainment and Media Bandwidth Services Analysis and Market Size | 64 | ||
| UGC Views are Averaged an Estimated 24.6 Billion per Month in 2011 | 66 | ||
| UGC Video Pricing and Market Analysis: 95th Percentile Analysis 67 | 67 | ||
| Pre Roll Advertising As a Media Type and Marketing Vehicle Has Expanded Dramatically Over the Past Two Years; There is Now an Average of 13.8 Billion Pre Roll Ads Delivered per Month in 2011/2012 | 69 | ||
| Advertising: Pre Roll Video Bandwidth Services Analysis and Market Size | 70 | ||
| In-Page Video Impressions Averaged an Estimated 32.4 Billion Delivered per Month in 2011 | 72 | ||
| In-Page Video Advertising: Bandwidth Services Analysis and Market Size | 72 | ||
| Music Downloads Were an Estimated 6.5 Billion Units in 2011; Movie and TV Show Downloads at 242 Million | 74 | ||
| Download Bandwidth Services Analysis and Market Size | 75 | ||
| Mobile Video and Video Advertising Views Average 3.6 Billion per Month in 2011 (U.S. Only, Excluding International Views, Which Account For Approximately 73% of YouTube Total Views) | 77 | ||
| Mobile Video: Bandwidth Services Analysis and Market Size | 77 | ||
| Podcast Downloads (Audio and Video) are Forecast at 8.9 Billion in 2011 | 79 | ||
| Podcasting Bandwidth Services Analysis and Market Size | 79 | ||
| Transit Commercial Market Value Analysis: 2011 81 | 81 | ||
| Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile Analysis) | 81 | ||
| Professional Video: Transit Bandwidth Services Market Value (95th Percentile Analysis) | 82 | ||
| User Generated Video Transit Pricing and Market Analysis (95th Percentile Analysis) | 83 | ||
| Video Advertising: Pre Roll Transit Bandwidth Services Market Size (95th Percentile Analysis) | 84 | ||
| In-Page Video Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 85 | ||
| Download Transit Bandwidth Services Market Size (95th Percentile Analysis) | 86 | ||
| Mobile Video Views and Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 87 | ||
| Podcasting Transit Bandwidth Services Market Size (95th Percentile Analysis) | 88 | ||
| SECTION THREE | 89 | ||
| CDN Revenue, Account Share and Operational Analytics | 89 | ||
| CDN Revenue is Estimated at $1.86 Billion in 2011 | 89 | ||
| CDN Market Revenue Analysis: 2003 - 2014 | 91 | ||
| Akamai Generates 63.2% of Segment Revenue in 2011 | 69 | ||
| CDN Revenue 2010 - 2011 | 93 | ||
| Akamai Powers 20% of Total Unique CDN Accounts in 2011; Edgecast 15.5% | 95 | ||
| CDN Account Share: 2010 - 2011 | 95 | ||
| CDN Accounts Number 20,045 at Year End 2011 | 97 | ||
| CDN Annual Accounts: 2005 - 2011 | 98 | ||
| CDN Account Growth and Revenue Growth Differential Narrows Substantially in 2011 | 99 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2011 | 100 | ||
| MRR Rebounds in 2011, Up 17.6% Over 2010 | 100 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2011 | 102 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 – 2014 (Part 1) | 103 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 - 2014 (Part 2) | 106 | ||
| CDN COGS and Marginal Analysis: 2011 | 107 | ||
| Server Deployments Increased by 30% in 2011 | 110 | ||
| CDN Media Server Deployment: 2005 - 2011 | 111 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 111 | ||
| SECTION FOUR | 113 | ||
| Pro Video Delivery Ranked by CDN Contract/Vendor 2010 | 113 | ||
| CDN/Bandwidth Provisioning 2010 | 114 | ||
| Professionally Produced and Distributed Video: CDN Provisioning 2010 | 116 | ||
| Pro Video Delivery Ranked by CDN Contract/Vendor 2011 | 181 | ||
| Professionally Produced and Distributed Video: CDN Provisioning 2011 Half Year Analysis | 183 | ||
| SECTION FIVE | 216 | ||
| UGC is a Highly Concentrated Content Segment, Predominately Self-Hosted | 216 | ||
| UGC Video Publishing and Bandwidth Provisioning 2010: CDN Contract Share | 217 | ||
| UGC Video: 2011 | 227 | ||
| UGC Video Publishing and Bandwidth Provisioning 2011 YTD: CDN Contract Share227 | 227 | ||
| UGC and Social Media Video: CDN Contracts 2011 YTD | 229 | ||
| SECTION SIX | 232 | ||
| Online/Mobile Music Listening and Song Play Hours Dominated by Pandora and Shoutcast, Two Self-Hosted Brands | 232 | ||
| Online/Mobile Music Listening Hours by Bandwidth Provider: 2010 | 232 | ||
| Online/Mobile Music Listening and Song Play Hours 2011 | 234 | ||
| Online/Mobile Music Listening Hours by Bandwidth Provider: 2011 YTD | 234 | ||
| Internet Music Radio Listening Hours and Bandwidth Provisioning: 2011 | 236 | ||
| SECTION SEVEN | 243 | ||
| Q&A | 243 | ||
| 3CROWD TECHNOLOGIES | 243 | ||
| AKAMAI TECHNOLOGIES | 249 | ||
| ALCATEL-LUCENT | 256 | ||
| BITGRAVITY | 261 | ||
| CACHEFLY | 266 | ||
| CDNETWORKS | 270 | ||
| COTENDO | 275 | ||
| DACAST | 279 | ||
| EDGECAST | 283 | ||
| HIGHWINDS | 291 | ||
| INTERNAP | 297 | ||
| LEVEL 3 | 302 | ||
| LIMELIGHT NETWORKS | 306 | ||
| LIQUID WEB | 315 | ||
| MIRROR IMAGE | 319 | ||
| PANDO NETWORKS | 324 | ||
| WOWZA MEDIA SYSTEMS | 329 | ||
Contact us at the Consulting WP office nearest to you or submit a business inquiry online.
Subscribe to Our Newsletter
Published On : December 2019
$ 3600
Published On : November 2019
$ 3600
Published On : November 2019
$ 3600
Published On : November 2019
$ 3600
$ 3950
