Content Delivery Networks (CDNs) raised contract revenue 18.3% in 2012, to $2.28 billion, as value-added services (site/app acceleration, cloud solutions, analytics, specialized HTTP video platforms, content transformation, workflow, management, security and rights protection) in addition to core bandwidth provisioning supporting very large video accounts fueled market growth.
Sector-wide monthly recurring revenue (MRR) rose 8% to $5,265, calculated as an average of each CDN’s revenue-per-account performance comparable, as detailed in this market and business analytics report.
Report analysis establishes that media and entertainment represents the largest content segment under CDN contract, forming 48.6% of the penetrated market. Professional video, digital video advertising and Internet music radio are highly penetrated verticals.
Professional video bandwidth fees frame a 35.8% share of the available market (counting self-hosting sites), followed by UGC video at 19.6%, mobile video (views and advertising) at 14.8% and music radio/song plays at 11.7%.
TABLE OF CONTENTS:
| EXECUTIVE SUMMARY | 1 | ||
| CDN Delivery Market Improves To a $2.28 Billion Business in 2012 | 1 | ||
| Domestic CDNs are forecast to reach $2.71 billion in 2013 revenue | 1 | ||
| CDN Market Revenue: 2003 - 2015 | 2 | ||
| International CDNs are estimated at $1.2 billion in 2012 contract billings | 3 | ||
| Account additions at the lower end of the MRR spectrum are being aggressively targeted by smaller CDNs | 3 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2012 | 3 | ||
| Professional video delivery represents the largest share of bandwidth consumption | 5 | ||
| Bandwidth Provisioning Share By Content Category: 2006 - 2012 | 6 | ||
| CDN Terminology Definitions | 7 | ||
| SECTION ONE | 10 | ||
| CDN Market Dynamics Introduction and 2012-2015 Overview | 10 | ||
| CDN sector business, technology and account acquisition trends | 10 | ||
| Account Acquisition, new entrants and competitive forces | 11 | ||
| Retail and transit bandwidth pricing indicators | 11 | ||
| Video formats and adoption trends | 12 | ||
| International markets, competition and account winds | 12 | ||
| Akamai COGS Analysis: 2007 - 2012 | 13 | ||
| Limelight Networks: COGS Analysis 2008 - 2012 | 13 | ||
| CDN accounts under contract swell by 61.2% in 2012 | 14 | ||
| CDN Annual Accounts: 2005 - 2012 | 14 | ||
| CDN Total Year End Accounts: 2012 | 15 | ||
| Akamai continues to lead the market in revenue | 15 | ||
| CDN Revenue and Market Share: 2010 - 2012 | 16 | ||
| CDN Revenue Analysis: 2010 - 2012 | 17 | ||
| Cap Ex investment rose by 25.1% in 2012 | 18 | ||
| CDN Cap Ex Investment: 2007 - 2012 | 18 | ||
| CDNs continue to deliver Cap Ex investment efficiency balanced against account additions | 20 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 20 | ||
| The CDN sector grew by 18.3% in 2012; Double-digit growth forecast through 2015 | 22 | ||
| CDN Market Revenue Analysis: 2003 - 2015 | 22 | ||
| Average MRR increased 8% in 2012 to $5,265 | 22 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2012 | 23 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2012 | 25 | ||
| Media and Entertainment contract value increased by 20% in 2012 | 29 | ||
| Total Media and Entertainment CDN Contract Value: 2006 - 2012 | 29 | ||
| Entertainment Media Revenue Share of CDN Market: 2006 - 2012 | 29 | ||
| Domestic CDNs are forecast to reach $2.71 billion in 2013 revenue | 29 | ||
| International CDNs are estimated at $1.2 billion in 2012 contract billings | 31 | ||
| Global CDN Market Value (Domestic vs. International CDNs) | 33 | ||
| Account additions at the lower end of the MRR spectrum are being aggressively targeted by smaller CDNs | 35 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2012 | 35 | ||
| The global CDN market is estimated at $3.7+ billion in 2012 | 37 | ||
| CDN Global Market Value Comparison: 2006 - 2012 | 38 | ||
| The Commercial Market Value of Audio/Video delivery surpassed $1.33 billion in 2012 | 40 | ||
| Commercial Bandwidth Market Value: Audio/Video 2006 - 2012 | 41 | ||
| Professional video delivery represents the largest share of bandwidth consumption | 43 | ||
| Streaming/HTTP Audio/Video Content Category Share: Commercial Market Value 2006 - 2012 | 43 | ||
| CDN Bandwidth Services Category Share: 2011 | 45 | ||
| CDN Bandwidth Services Category Share: 2012 | 47 | ||
| Retail bandwidth pricing stabilized in 2012 | 49 | ||
| Retail Contract Pricing: 2006 - 2012 | 49 | ||
| Retail and transit pricing declines do not necessarily move in tandem | 54 | ||
| Annual Pricing Comparison: Retail Versus Transit 2006 - 2012 | 54 | ||
| SECTION TWO | 57 | ||
| Entertainment and Media: Bandwidth Provisioning and Commercial Market Value Analytics 2012 | 57 | ||
| Retail and transit commercial market value in media and entertainment content verticals estimated at $1.7 billion in 2012 | 57 | ||
| CDN Bandwidth Services Content Vertical and Category Share: 2012 | 58 | ||
| Commercial Market Value: Media and Entertainment 2012 | 60 | ||
| Media and entertainment contract value grew by 20% in 2012 | 62 | ||
| Total Media and Entertainment CDN Contract Value: 2006 - 2012 | 62 | ||
| Professional video and UGC video account for 55.4% of commercial market value in 2012; mobile video doubled | 63 | ||
| Streaming/HTTP Content Category Share: Commercial Market Value 2006 - 2012 | 64 | ||
| 2012 Commercial Market Value: Entertainment and Media Bandwidth Analysis | 66 | ||
| Digital music delivery (streaming radio/track play) market value at $85.9 million in 2012 | 66 | ||
| Online Music and Track Play Listening Hours: Bandwidth Services Analysis and Market Size | 67 | ||
| Professional video generated $262.2 million in market value in 2012 | 68 | ||
| Online Video: Professional Entertainment and Media Bandwidth Services Analysis and Market Size | 69 | ||
| UGC Video Produced a Market Worth $143.7 Million in 2012 | 70 | ||
| UGC Video Pricing and Market Analysis: 95th Percentile Analysis | 71 | ||
| In-Stream Video Advertising Produced a Market Worth $44.2 Million in 2012 | 72 | ||
| In-Stream Advertising: Pre/Mid/Post Roll Video Bandwidth Services Analysis and Market Size | 73 | ||
| In-Page Video Impressions Framed a Market Worth $53.7 Million in 2012 | 74 | ||
| In-Page Video Advertising: Bandwidth Services Analysis and Market Size | 75 | ||
| Download Music and Movies Generated Commercial Market Value of $34.1 Million in 2012 | 76 | ||
| Download Bandwidth Services Analysis and Market Size | 77 | ||
| Podcasting Bandwidth Services Analysis and Market Size | 78 | ||
| Mobile Video Delivery Generated Equivalent Market Value of $108.5 Million in 2012 | 79 | ||
| Mobile Video: Bandwidth Services Analysis and Market Size | 79 | ||
| 2012 Transit Commercial Market Value: Media and Entertainment Bandwidth Analysis | 80 | ||
| Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile Analysis) | 80 | ||
| Professional Video: Transit Bandwidth Services Market Value (95th Percentile Analysis) | 81 | ||
| User Generated Video Transit Pricing and Market Analysis (95th Percentile Analysis) | 82 | ||
| Video Advertising: Pre/Mid/Post Roll Transit Bandwidth Services Market Size (95th Percentile Analysis) | 83 | ||
| In-Page Video Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 84 | ||
| Download Transit Bandwidth Services Market Size (95th Percentile Analysis) | 85 | ||
| Podcasting Transit Bandwidth Services Market Size (95th Percentile Analysis) | 86 | ||
| Mobile Video Views and Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 87 | ||
| SECTION THREE | 88 | ||
| CDN Revenue, Accounts and Operational Analytics | 88 | ||
| The CDN Sector to Continue Double-Digit Revenue Growth Through 2015 | 88 | ||
| CDN Market Revenue Analysis: 2003 - 2015 | 90 | ||
| CDN Revenue and Market Share: 2010 - 2012 | 93 | ||
| CDN Accounts under Contract Jump 61.2% in 2012 | 95 | ||
| CDN Annual Accounts: 2005 - 2012 | 95 | ||
| CDN Total Year End Accounts: 2012 | 97 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2012 | 98 | ||
| Impact of Growth in Lower MRR Accounts Seen Across Sector MRR Averages | 100 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2012 | 100 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2012 | 102 | ||
| Server Infrastructure Increases 17.1% in 2012 | 104 | ||
| CDN Server Infrastructure Deployment: 2005 - 2012 | 104 | ||
| CDN Cap Ex Investment: 2007 - 2012 | 106 | ||
| Higher Performance Servers Deployed, Cloud Infrastructure and Self-Service Options Available Through Amazon Web Services (Aws) Reduce Cap Ex Requirements for Smaller CDNs | 108 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 108 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 - 2015 (Part One) | 110 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 - 2015 (Cont.) | 113 | ||
| SECTION FOUR | 115 | ||
| CDN penetration of professional video at 84.5% of total 2012 views | 115 | ||
| Professional Video Views and CDN Penetration: 2012 | 115 | ||
| Professionally Produced and Distributed Digital Video: CDN/Bandwidth Provider Analysis 2012 | 116 | ||
| SECTION FIVE | 150 | ||
| UGC/Social Networking/Semi-Professional Content Concentrated and Predominately Self-Hosted | 150 | ||
| UGC/Social Networking/Semi-Professional Video Views and CDN Penetration: 2012 | 151 | ||
| Semi-Professional, UGC and Social Digital Video: CDN/Bandwidth Provider Analysis 2012 | 152 | ||
| SECTION SIX | 155 | ||
| Internet Music Radio and Song Play Delivery Market Place at 70% CDN Penetration in 2012 | 155 | ||
| Music Radio/Song Play Listening Hours Delivered Under CDN Contract: 2012 | 156 | ||
| Internet Music Radio and Song Play Services: CDN/Bandwidth Provider Analysis 2012 | 157 | ||
| SECTION SEVEN | 165 | ||
| Q & A's | 165 | ||
| AKAMAI | 165 | ||
| BITGRAVITY& TATA COMMUNICATIONS CDN | 172 | ||
| CDNETWORKS | 175 | ||
| CHINACACHE | 180 | ||
| EDGECAST | 192 | ||
| HIGHWINDS | 197 | ||
| INTERNAP | 204 | ||
| LEVEL 3 | 209 | ||
| LIMELIGHT NETWORKS | 214 | ||
| MAINSTREAM NETWORKS | 219 | ||
| MIRROR IMAGE | 223 | ||
| NETDNA | 227 | ||
| YOTTAA | 230 | ||
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