CDN Revenue to Hit $3.3 Billion in 2014

SEASIDE, CALIF.—Revenue generated by content delivery networks will be up 19 percent globally in 2014 to $3.36 billion as a result of increased video viewing among consumers according to AccuStream Research.

The report, entitled “CDN 2014 – 2017: Operations and Analytics,” divides the sector by media and publishing vertical, provider, solutions, geographies, R & D, bytes delivered, global revenue, product launches and partnerships. It also includes conversations with senior executives, technology and sales professionals, who explain markets, network topologies, capacity, solutions innovation, software, sales and account acquisition strategies.

AccuStream Research also states that the CDN sector will enjoy double-digit growth through 2017, due to: 1) Bandwidth pricing stability expanding topline while lowering COGS; 2) Marginal performance paybacks; 3) Value added services addressing tech complexities--accounts requiring quality, reach and security at scale--deciphering media formats, device fragmentation and monetization tools that improve MRR; and 4) Virtual video (including “live” steaming, VOD, TV Everywhere deployment and the enterprise) is rapidly gaining momentum with consumers.

The study also states that in 2103, the total 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 percent) was delivered through CDN contracts.

Video viewing and advertising (combining self-hosted networks), TV/movies and music accounted for more than 2.4 billion gigabytes of data transfer, worth $1.6 billion in commercial market value, when priced at prevailing rates and against a volume (gigabytes delivered) model.
CDNs profiled include Akamai Technologies, CDNetworks, ChinaCache, Cloudflare, Highwinds, Level 3, Limelight Networks, MaxCDN, Mirror Image, and Tata Communications.