CDN, streaming bandwidth services set to grow more than 30 percent in 2006

March 28, 2006

The combined commercial market value for streaming audio, video, streaming advertising and download entertainment media reached nearly $450 million in 2005, according to the latest report published by AccuStream iMedia Research.

Content Distribution Networks(CDNs) grew their total revenue base, including streaming and non-streaming accounts, by an average of 41.2 percent, the report said. Monthly recurring revenue (MRR) averaged more than $8200 for the year.

The report, “CDN Market Dynamics, Analysis and Share: 2005-2006,” includes provisioning analysis for retail contracts delivered through stand-alone CDN providers, as well as self-hosting networks, such as AOL, Yahoo and Google.

The entire CDN and streaming bandwidth services market is poised to grow by more than 30 percent this year, according to the report.

The report includes cost/revenue analysis associated with streaming advertising, including audio, video, Flash and non-Flash, and download media, such as movies, television and music files.

It also analyzes streaming server infrastructure and the more than 9500 dedicated servers currently in deployment, streaming market share by format and the costs associated with a typical download music file and movie with historical comparisons.

According to the report, the average cost per gigabyte of streaming video transferred in 2005 was $1.41, compared to $1.75 in 2004. The average price to deliver a gigabyte of Internet radio was $0.46. Flash streaming video is typically priced at a premium to standard market rates.

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