CDN (Content Delivery Network) revenue is projected at $3.36 billion in 2014, up 19%,directed by user appetite for self-selected content, further accelerating linear broadcast, media and entertainment’ stransition into virtual paradigms, as detailed in a sector business ops and tech solutions report by AccuStream Research.
The report, CDN 2014 – 2017: Operations and Analytics, deconstructs the sector by media and publishing vertical, provider, solutions, geographies, R & D, bytes delivered, global revenue, product launches and partnerships.
Across the gamut of global operations,double-digit growth through 2017 is animated by:
Total 2013 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%) was delivered through CDN contracts.
Video viewing and advertising (combining self-hosted networks), TV/ movies and music accounted for 2.4+ billion gigabytes of data transfer, worth $1.6 billion in commercial market value (bandwidth and co-lo fees only), when priced at prevailing rates and against a volume (gigabytes delivered) model.
Each content vertical component of the market is calculated against transfer volumes, retail pricing and percent delivered by CDNs. Complete video viewing and music listening hour databases are provided in this report.
CDNs include Akamai Technologies, Limelight Networks, Cd Networks, China Cache, Mirror Image, Level 3, High winds, Cloud flare, Tata Communications and Max CDN, among others.
This report’s supportive Q & A sections are conducted with senior executives, technology and sales professionals to explain markets, network topologies, capacity, solutions innovation, software, sales and account acquisition strategies.
Table of Contents
Executive Summary 1
CDN Business Operations, Market Dynamics, Technology and Account Acquisitions Trends 1
The Macro Market: CDN Accounts under Contract Swell by 141.4% in 2013/2014 YTD 2
Graphic- CDN Monthly Recurring Revenue Analysis: 2005 -2013 2
Graphic- CDN Monthly Recurring Revenue: 2005 - 2013/2014 YTD 3
Graphic- CDN Accounts: Annual Analysis: 2005 – 2013/2014 4
Graphic- CDN Annual Accounts: 2005 – 2013/2014 YTD 5
MRR Analyzed by Individual CDN: Average MRR Increased 8.8% in 2013 to $6,719 6
Graphic- CDN Monthly Recurring Revenue Analysis: 2005 – 2013 6
Graphic- CDN Comparative MRR Averages: 2005 – 2013 7
Graphic- Akamai Monthly Recurring Revenue (MRR) 2005 – 2013 8
The CDN Sector Grew by 17.9% in 2013; Double Digit Growth Forecast through 2017 9
Graphic- CDN Market Revenue: 2003 – 2017 Retail Contract Value 10
CDN Terminology Definitions 11
Section One 17
Network Availability, Security, Quality and Scale: Selling CDN Services: 2014 - 2017 17
Graphic – Akamai COGS Analysis: 2007 - 2013 18
Graphic – LimeLight Networks: COGS Analysis 2008 - 2013 18
Graphic – Entertainment Media Revenue Share of CDN Market: 2006 - 2013 20
CDN Business Operations, Market Dynamics, Technology and Account Acquisition Trends 21
Account Acquisition, New Entrants and Competitive Forces 21
Retail and Transit Bandwidth Pricing Indicators: 2014 – 2015 22
Video Formats and Adoption Trends 22
International Markets, Competition and Account Wins 23
The Macro Market: CDN Accounts under Contract Swell by 141.4% in 2013/2014 YTD 23
Graphic – CDN Monthly Recurring Revenue Analysis: 2005 – 2013/2014 YTD 24
Graphic – CDN Accounts: Annual Analysis: 2005- 2013/2014 25
Graphic – CDN Annual Accounts: 2005 – 2013/2014/YTD 26
MRR Analyzed by Individual CDN: Average MRR Increased 8.8% in 2013 to $6719 27
Graphic – CDN Monthly Recurring Revenue Analysis: 2005 – 2013 27
Graphic – CDN Comparative MRR Averages: 2005 – 2013 28
Graphic – Akamai Monthly Recurring Revenue (MRR) 2005 - 2013 29
Graphic – CDN Revenue and Market Share: 2010 - 2013 30
Graphic – CDN Revenue Analysis: 2010 – 2013 31
Graphic – CDN Cap Ex Investment: 2007 – 2013 32
Graphic – CDN Cap Ex Investment: 2007 – 2013 in $Millions 33
CDNs Continue to Deliver Cap Ex Investment Efficiency Balanced Against Account Additions 34
Graphic – Cap Ex Analysis: Server Deployments and Account Growth: 2006 – 2014 34Graphic – Server Deployment and Account Growth Comparison: 2006 – 2013/2014 35
The CDN Sector Grew by 17.9% in 2013; Double-Digit Growth Forecast through 2017 36
Graphic – CDN Market Revenue Analysis: 2003 - 2017 36
Graphic – CDN Market Revenue: 2003 – 2017 Retail Contract Value 37
Media and Entertainment (audio/video-excluding games) Contract Value Increased By 5.4% in 2013 38
Graphic – Total Media and Entertainment CDN Contract Value 2006 -2013 38
Graphic – Total Media and Entertainment CDN Contract Value: 2006 – 2013 39
Graphic – Media and Entertainment Percent CDN Revenue: 2006 – 2013 40
Graphic – Media and Entertainment Market Value: CDN Segment 2006- 2013 41
Graphic – Entertainment Media Revenue Share of CDN Market Value: 2006 – 2013 42
Graphic – CDN Bandwidth Services Category Share: 2013 44
Entertainment and Media Commercial Market Value at $3.35 Billion in 2013 45
Graphic – Commercial Bandwidth Market Value: Media and Entertainment 2006-2013 45
Graphic – Bandwidth Provisioning: US Commercial Market Value Audio/Video 2006-2013 46
Domestic CDNs are Forecast to Reach $3.36 Billion in 2014 Revenue 47
Graphic – CDN Market Revenue Analysis: 2003 – 2017 47
Graphic – CDN Market Revenue: 2003 -2017 Retail Contract Value 48
Graphic – CDN Revenue Growth Rates: 2003 – 2017 49
Graphic – CDN Revenue and Account Growth Rates: 2006 -2013 50
Graphic – CDN Revenue and Account Growth Rate Comparison: 2006 – 2013 51
International CDNs Estimated at $1.4 Billion in 2013 Contract Billing: 2014 Forecast at $1.76 Billion 52
Graphic – CAGR US and Global CDN: 2006 – 2013 53
Graphic – CDN Global Market Value Comparison: 2006 – 2013 54
Graphic – Global CDN Market Value (Delivered by Domestic vs. International CDNs) 54
Graphic – Global CDN Market Value: 2006 – 2013 (Retail Contract Revenue) 55
Graphic – Global CDN Contract Revenue 2006 – 2013 57
Graphic – Global CDN Revenue Comparison: 2006 – 2013 58
Graphic – Gigabyte Pricing Increments: Annual Average 2006 – 2013 60
Graphic – Retail Contract Pricing: Gigabyte Delivery and Annual Unit Declines 2006 -2013 61
Graphic – Mbps Retail Contract Pricing: 2006- 2013/2014 62
Graphic – Retail Pricing: Mbps Delivery and Annual Unit Declines 62
Graphic – Retail versus Transit Cost Decline Trends Comparison: 2006 – 2013/2014 64
Graphic – Retail and Transit Bandwidth Pricing Declines: 2006 – 2013 65
Section Two 66
Entertainment and Media: Video Drives Bandwidth Provisioning Billings and Total Commercial Market Value 2013 / 2014 66
Graphic – CDN Bandwidth Services Category Share: 2013 68
Graphic – Bandwidth Services: Commercial Market Value Share by Format 2013 .69
Graphic – Total Media and Entertainment CDN Contract Value: 2006 – 2013 ..70
Graphic – Total Media and Entertainment CDN Contract Value: 2006 – 2013 71
Media and Entertainment Account for 37.3% of Total CDN Contract Value in 2013 72
Graphic – Media and Entertainment Market Value: CDN Segment 2006 -2013 73
Commercial Market Value Analyzed against a Retail-Priced (Volume/Gigabytes Delivered Model) Reveals a $3.35 Billion Potential Market 74
Graphic – Commercial Bandwidth Market Value: Media and Entertainment 2006 - 2013 75
Graphic – Bandwidth Provisioning: US Commercial Market Value Audio/Video 2006-2013 76
2013 Commercial Market Value: Entertainment and Media Bandwidth Analysis By Content Category 77
Graphic – Digital Desktop and Mobile Music and Track Play Listening Hours: Bandwidth Services Analysis and Market Size: 2013 78
Graphic – Virtual Video Views: Bandwidth Services Analysis and Commercial Market Value’13 80
In-Stream Video Advertising (pre/mid/post roll) produced 36.9 million gigabytes and traffic, and a bandwidth services market worth $39.9 million in 2013 81
Graphic – In-Stream Virtual Video Advertising: Bandwidth Services, Provisioning Analysis and Value 2013 82
Graphic – In-Banner Video Advertising: Bandwidth Services and Provisioning Analysis 2013 83
Graphic – Download Music/TV Bandwidth Services and Provisioning Analysis 2013 84
2013 Transit Commercial Market Value: Media and Entertainment Bandwidth Analysis 85
Graphic – Digital Desktop and Mobile Radio: Backhaul Bandwidth Services Market Value 85
Graphic – Virtual Video Views 2013: Transit Bandwidth Services Market Value 86
Graphic – In-Stream Video Advertising 2013:
Pre/Mid/Post Roll Transit Bandwidth Services Market Size 87
Graphic – In-Banner Video Advertising: Transit Bandwidth Services Market Size 2013 88
Graphic – Music/Movie/TV Download Transit Bandwidth Services Market Size 2013 89
Section Three 90
CDN Revenue, Accounts and Operational Analytics 90
Graphic – CDN Market Revenue: 2003 – 2017 Retail Contract Value 91
Graphic – CDN Market Revenue Analysis: 2003 – 2017 92
Graphic – CDN Revenue Growth Rates: 2003 – 2017 93
Graphic – CAGR US and Global CDN: 2006 - 2013 94
Graphic – CDN Revenue Share: 2010 – 2013 95
Graphic – CDN Revenue and Market Share: 2010 – 2013 96
Graphic – CDN Sector Revenue Analysis: 2010 – 2013 97
Graphic – CDN Revenue and Account Growth Rates: 2006 – 2013 100
Graphic – CDN Revenue and Account Growth Rate Comparison: 2006 – 2013 101
Democratizing CDN: Large Numbers of Smaller Account adds Impact Sector MRR Averages 102
Graphic – CDN Monthly Recurring Revenue Analysis: 2005 – 2013 102
Graphic- CDN Monthly Recurring Revenue: 2005 – 2013 103
Graphic- CDN Comparative MRR Averages: 2005 – 2013 105
QOS Performance and New Product Launches Signal Double-Digit Infrastructure Growth through 2017 106
Graphic – CDN Server Infrastructure Deployed: 2005 – 2013/2014 . 106
Graphic – CDN Total Server Infrastructure Deployed: 2005 – 2013/2014 107
Cap-Ex Investment Rose by 21% in 2013/2014 108
Graphic – CDN Cap Ex Investment: 2007 – 2013/2014 108
Server Deployments Increase by 15.8% in 2013/2014 110
Graphic - Cap Ex Analysis: Server Deployments and Account Growth: 2006 – 2014 110
Graphic- Server Deployment and Account Growth Comparison: 2006 – 2013/2014 Capital Efficiency Analysis 111
Cost Containment, Managing Bandwidth and Operational Efficiencies Key to Marginal Performance Improvements in 2014 – 2017 112
Graphic – Akamai Gross Margin Analysis: COGS 2007 – 2013 112
Graphic – Akamai COGS and Gross Margin Analysis: 2007 – 2013 113
Graphic – Akamai COGS Analysis: Bandwidth Component Cost Breakout 115
Graphic – Limelight Networks: COGS and Gross Margin Analysis 2006 – 2013 116
Graphic – Limelight Networks: COGS Analysis 2008 – 2013 ..118
Graphic – CDN Provisioning and Services: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 -2017 (Part One) 119
Graphic – CDN Provisioning and Services: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 -2017 (Part Two) 123
Section Four 127
Complete 2013 Desktop/Mobile Video Views by Site, Network, Channel, Aggregator and Service by CDN Contract 127
Graphic – Virtual Video Views 2013: Complete Professional, UGC and Social Destination Traffic By Month and CDN Contract 128
Section Five 237
Complete 2013 Music Listening and Song Play Hours by Site, Channel, Network, Aggregator and Service by CDN Contract 237
Graphic – Digital Desktop and Mobile Listening Database: 2013 Complete Year by Month and CDN Contract 238
Executive Forum: Sector Q & A’S 260
Akamai 260
CDNetworks 267
ChinaCache 274
Highwinds 279
Level 3 287
Limelight Networks 292
MaxCDN 298
Mirror Image 302
RRSAT 309
TATA Communications 314
Verizon Edgecast 320
Yottaa 325
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