Technology | Media | Telecommunications

Friday, August 21, 2009

Content Delivery Network Services Upside

Over the next five years, the worldwide value of Content Delivery Network (CDN) services will pass $2 Billion annually by 2011 and continue growing thereafter, according to the latest market study by In-Stat.

Growth in CDNs is a result of increasing usage of over-the-top internet video, as well as their flexibility to manage content for delivery through multiple delivery channels to multiple device types.

"Over the coming years, In-Stat believes that Data Centers and CDNs will become the dominant approach for sourcing everything on demand," says Gerry Kaufhold, In-Stat analyst.

This will not only enable owners and creators to have more control over their creations, but also provide viewers with more choices in programming and delivery methods.

The question on my mind -- will broadband service providers actively pursue this opportunity to create a two-sided business model, where they offer content owners new hosting services?

In-Stat's market study found the following:

- Adaptive Bit Rate Video approaches will permit IP-networks to deliver a quality User Experience at lower bit rates.

- The North American market will remain the dominant geographic segment for CDNs through 2013. However, Europe and Asia Pacific will see significantly higher growth rates.

- In-Stat believes addressable advertising holds out the promise of a much more efficient use of advertising spending, but all segments of the ecosystem need to participate in the revenues to justify the infrastructure investments that must be made.