CDN revenue to break $3BN barrier by end of 2014
| 30 May 2014
Increased appetite for self-selected content, accelerating linear broadcast and entertainment's transition into virtual paradigms will all combine to make 2014 a bonanza year for content delivery networks (CDNs), says AccuStream Research.
The CDN 2014-2017: Operations and Analytics report projects 2014 CDN revenue will grow 19% year-on-year. In 2013 it calculated that the total year's 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.
With rather bullish expectations for the CDN market, the analyst added that it believes that there will be double-digit growth for the CDN market through to 2017 driven by bandwidth pricing stability expanding top line while lowering COGS; marginal performance paybacks; value added services addressing technological complexities such as accounts requiring quality, reach and security at scale; the availability of tools capable of improving MRR and deciphering media formats, device fragmentation and monetisation tools. It also noted that virtual video ó including live steaming, VOD and TV everywhere deployment ó will be a consumption dynamo.