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Next-Generation Content Delivery Networks

New video content hosting technology -- known as Content Delivery Networks (CDNs) and Next generation Data Centers -- will dramatically change the business model and the user experience for video delivery services, according to the latest market study by In-Stat.

CDN provisioned Video-on-Demand (VoD) will allow content owners more control over their creations and provide viewers with more choices in programming and delivery methods.

"As Content Providers build or out-source their own data centers, they will be in charge of every aspect of their content," says Gerry Kaufhold, In-Stat analyst. "We will see flexible, complex, and creative ways to derive every last penny out of every piece of content."

In-Stat's market study found the following:

- Over the next five years, the worldwide value of Content Delivery Network services will nearly double, to more than $2 billion.

- The Information Technology (IT) industry is aggressively driving forward with cost-cutting technologies that simplify storage, virtualized servers, and standardize networks.

- Traditional TV and Subscription TV Services need to migrate their existing siloed VoD infrastructure to more efficient Data Center and CDN models.

- Internet protocol networks that connect from Data Centers and CDNs to access networks provide a lean delivery system that can profitably support Advanced Advertising and more personalized video delivery experiences.

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

- Adaptive Bit Rate Video approaches will permit IP-networks to deliver a high-quality User Experience at lower bit rates, and will cross over to TV-based services.

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