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Tier1 Research: Rising Broadband Adoption and Online Video Services
Heating Up Demand for Content Delivery Network Services
(Wireless News Via Thomson Dialog NewsEdge)
Demand for content delivery network (CDN) services continues to be
driven by rising broadband adoption and a slew of new online video
services, according to a new report from Tier1 Research (T1R).
T1R analysts predict double-digit revenue growth in the coming quarters
for CDN service providers. Rapid growth in this market space is drawing
more attention from the investment community and attracting a multitude
of new players, though the market will continue to be dominated by
Akamai and Limelight Networks.
said
T1R analysts are projecting in the report that the total market
revenues for 2Q 2007 through 2Q 2008 will reach $1.39bn. Akamai,
Limelight Networks, and CD Networks will account for 65 percent of that
revenue total. T1R also estimated that more than 77 percent of CDN
service revenue for the second quarter of 2007 was generated by
customers based in North America. Customers in the Asia-Pacific market
contributed 17 percent of worldwide CDN revenue during the same time
period, in large part due to the growth of broadband services in South
Korea. CDN service providers will continue to look beyond North America
to find more expansion opportunities.
These findings are contained in a report released today by New
York-based T1R, an independent research firm that analyzes the
financial and industry implications of developments affecting public
and private companies within the hosting, IT, communications and
Internet sectors. The report is the first in a series of quarterly
reports designed to provide timely analysis and perspective on key
technology trends and marketplace developments in the CDN services
marketplace.
One of the issues in the CDN market is that the distinctions between
different CDN providers and the needs they serve are being lost as
companies get aggregated under one big CDN umbrella.
Contrary to market opinion, we believe that not all CDNs are
interchangeable. Nor do all service providers attempt to reach both the
low and high end of the addressable market," said Jim Davis, senior
analyst at T1R and author of the report. "While Akamai is expanding
business outside the US, for instance, not all competitors are
positioned to serve international markets, and service offerings are
not identical. These and other issues impact the addressable market
that a service provider can reach.
Looking forward, "Content delivery networks are getting ever more
intimately involved in the delivery of multimedia content," Davis
added. "Further integration of services like ad management and content
syndication with CDN service will occur, helping the major players
further separate themselves from the pack.
The firm said its 41-page report, titled "Content Delivery Networks:
Market Overview Fall 2007, provides profiles of key CDN service
providers along with revenue projections and a checklist of each
vendor's offerings. It provides analysis of changes in market share and
offers detailed discussion and analysis of important trends and
developments that were driving the CDN services sector, as well as
insight into where this market is going.
The report covers more than 20 key public and private companies in the
CDN services sector, including: Akamai, BitGravity, CacheFly,
CacheLogic, CDNetworks, ChinaCache, GS Neotech (Korea), Internap, Level
3 Communications, Limelight Networks, Mirror Image, NaviSite, Panther
Express and VeriSign, the company noted in a release.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright 2007 Wireless News
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