Parent Category: Newes 29-08-2013
Even though some retrenching is expected, the cloud video service market is expected to be worth $2.36 billion by the end of 2013 according to a new survey from ABI Research.
The analyst’s Cloud Video and Video Hardware Research Service report described a market composed of various business models, including content delivery networks (CDNs), online video platforms (OVPs), managed video platforms (MVPs), and video content management systems (VCMS or CMS).
“The CDN and related markets are poised for a round of consolidation,” comments Sam Rosen, practice director at ABI Research. “We expect horizontal consolidation as well as horizontal consolidation – where CDNs bring in functions, especially from OVPs, to compete for the largest content producers.”
The report also showed that Akamai has continued its iron grip of this market with $322 million in revenues during the first half of 2013 increasing its share of this market to nearly 30% in early 2013, up from about 27% at the same period in 2012. ABI found that other companies competing in the market all have less than approximately 5% market share.
However, the analyst observed that rival CDNs could combine to gain scale in their competition with Akamai and that big investors see space in the market for a second standalone CDN to become a clear number two in the market. ABI noted that Highwinds closed $205 million in private equity funding at the beginning of August 2013 citing growth as well as M&A opportunities, while rival EdgeCast closed $54 million.
Commenting on competition within the market, Rosen added: “Akamai’s historical rival, Limelight Networks, has lost its way … Limelight’s revenues have turned from relatively flat to arching downward in a growing market. The market for CDN is showing in excess of 15% annual growth. Limelight has started messaging about digital presence that speaks more to small and medium business rather than large enterprise buyers – although, part of the strategy includes OVP type functions which may be valuable for media publishers.”