CDN Business Transformation and Market Analytics 2012 – 2014
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| EXECUTIVE SUMMARY | 1 | ||
| CDN Market Performance Dynamics and Business Trends 2011 – 2014 | 1 | ||
| CDN revenues estimated at $1.86 billion in 2011, 65.6% of the global total | 1 | ||
| Global CDN Market Value: 2006 – 2011 | 2 | ||
| CDN Revenue Growth Rates: 2004 – 2012 | 3 | ||
| Retail contracts continue to grow at double-digit rates | 3 | ||
| The differential between account growth and revenue growth is narrowing as value add solutions contribute to the top line | 3 | ||
| CDN Revenue and Account Growth Rate Comparison: 2006 – 2011 | 4 | ||
| Server deployment growth rates are consistently higher than account growth rates | 4 | ||
| Server Deployment And Account Growth Comparison: 2006 – 2011 | 5 | ||
| Retail contract pricing for bandwidth exhibited a slower rate of decline in 2011 compared to 2010 and 2009 | 5 | ||
| Retail Contract Pricing: Gigabyte Delivery and Annual Unit Declines 2006 – 2011 | 6 | ||
| CDN TERMINOLOGY DEFINITIONS | 7 | ||
| SECTION ONE | 9 | ||
| Introduction and 2011-2014 Overview | 9 | ||
| CDN Sector Embraces a Phase of Re-Invention, Re-Positioning and Business Transformation | 9 | ||
| CDN Market Performance Dynamics and Business Trends 2011 – 2014 | 10 | ||
| CDN Revenue, Market Share, Account Growth and Cap Ex Analytics | 12 | ||
| CDN Annual Accounts: 2005 - 2011 | 12 | ||
| CDN Account Share: 2010 - 2011 | 13 | ||
| CDN Revenue 2010 - 2011 | 14 | ||
| CDN Cap Ex Investment: 2007 – 2011 | 14 | ||
| CDN Market Revenue Analysis: 2003 - 2014 | 15 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 – 2011 | 16 | ||
| Media and Entertainment Percent CDN Revenue: 2006 – 2011 | 17 | ||
| CDN Market Pricing, Discounting and Streaming Media Encode Rates | 17 | ||
| CDN Revenues Estimated at $1.86 Billion in 2011, 65.6% of the Global Total | 18 | ||
| Global CDN Market Value (Delivered by Domestic vs. International CDNs) | 21 | ||
| CDN Revenue Growth Rates Historically Accelerate Through the Year | 21 | ||
| CDN Revenue 2010 - 2011 | 21 | ||
| Retail Contracts Continue to Grow at Double-Digit Rates | 22 | ||
| CDN Annual Accounts: 2005 - 2011 | 23 | ||
| The Differential Between Account Growth and Revenue Growth is Narrowing As Value Add Solutions Contribute to the Top Line | 24 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2011 | 26 | ||
| CDN MRR Averages $9,210 in 2011 | 26 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 – 2011 | 27 | ||
| Entertainment and Media Accounted for 49.7% CDN Revenue in 2011 | 29 | ||
| Entertainment Media Revenue Share of CDN Market: 2006 - 2011 | 31 | ||
| Media and Entertainment CDN Contract Value Closing in on $1 Billion in 2011 | 31 | ||
| Total Media and Entertainment CDN Contract Value: 2006 - 2011 | 32 | ||
| CDN Sever Deployments Increased by 30% in 2011 | 32 | ||
| CDN Media Server Deployment: 2005 - 2011 | 33 | ||
| 2011 Cap Ex Investment Estimated at a 72% Increase Over 2010 | 33 | ||
| CDN Cap Ex Investment: 2007 - 2011 34 | 34 | ||
| Server Deployment Growth Rates are Consistently Higher than Account Growth Rates | 34 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 36 | ||
| U.S.-Based CDNs Captures 65.6% of Global Revenue in 2011 | 36 | ||
| CDN Global Market Value Comparison: 2006 - 2011 | 37 | ||
| Commercial Market Value for Audio and Delivery Estimated at $1.1 Billion in 2011 | 37 | ||
| Commercial Bandwidth Market Value: Audio/Video 2006 - 2011 | 39 | ||
| Professional Video Remains the Largest CDN and Commerical Market Value Content Vertical | 36 | ||
| Streaming/HTTP Content Category Share: Commercial Market Value 2006 - 2011 | 41 | ||
| CDN Bandwidth Services Category Share: 2010 | 42 | ||
| CDN Bandwidth Services Category Share: 2011 | 43 | ||
| COGS and Retail Contract Analysis Indicate CDN Gross Margins, While Healthy, are Nevertheless Lower for the Core Bandwidth Side of the Business | 44 | ||
| CDN Bandwidth Costs, Contract and COGS Analysis: 2006 - 2011 | 46 | ||
| Retail Contract Pricing for Bandwidth Exhibited a Slower Rate of Decline in 2011 Compared to 2010 and 2009 | 46 | ||
| Retail Contract Pricing: 2006 - 2011 | 46 | ||
| Retail Contract Pricing: 2006 - 2011 | 47 | ||
| Pricing Declines for Retail Contracts are in Equilibrium with Those Seen in the Wholesale Business in 2011 | 49 | ||
| Annual Pricing Comparison: Retail Versus Transit 2006 - 2011 | 51 | ||
| SECTION TWO | 53 | ||
| Entertainment and Media: Bandwidth Provisioning and Commercial Market Value Analytics 2011 | 53 | ||
| Retail Commercial Market Value of Media and Entertainment Estimated at $1.3 Billion in 2011 | 53 | ||
| CDN Bandwidth Services Category Share: 2011 | 54 | ||
| CDN Bandwidth Services Category Share: 2010 | 56 | ||
| Professional Video Content Categories Including Advertising Networks and Download Media are Highly Penetrated by CDNs | 58 | ||
| 2011 Full Year Estimates: Bandwidth Services Analysis by Content Vertical | 60 | ||
| Online Music Listening Hours per Month Average 1.51 Billion in 2011 (Including Individual Track Plays) | 60 | ||
| Online/Mobile Music and Track Play Listening Hours: Bandwidth Services Analysis and Market Size 61 | 61 | ||
| Online/Mobile Music and Track Plays: Bandwidth Services Analysis and Market Size | 62 | ||
| Professional Video Averaged 7.64 Billion Views per Month in 2011, with an Average of 600+ Kbps Encode Rate | 63 | ||
| Online Video: Professional Entertainment and Media Bandwidth Services Analysis and Market Size | 64 | ||
| UGC Views are Averaged an Estimated 24.6 Billion per Month in 2011 | 66 | ||
| UGC Video Pricing and Market Analysis: 95th Percentile Analysis 67 | 67 | ||
| Pre Roll Advertising As a Media Type and Marketing Vehicle Has Expanded Dramatically Over the Past Two Years; There is Now an Average of 13.8 Billion Pre Roll Ads Delivered per Month in 2011/2012 | 69 | ||
| Advertising: Pre Roll Video Bandwidth Services Analysis and Market Size | 70 | ||
| In-Page Video Impressions Averaged an Estimated 32.4 Billion Delivered per Month in 2011 | 72 | ||
| In-Page Video Advertising: Bandwidth Services Analysis and Market Size | 72 | ||
| Music Downloads Were an Estimated 6.5 Billion Units in 2011; Movie and TV Show Downloads at 242 Million | 74 | ||
| Download Bandwidth Services Analysis and Market Size | 75 | ||
| Mobile Video and Video Advertising Views Average 3.6 Billion per Month in 2011 (U.S. Only, Excluding International Views, Which Account For Approximately 73% of YouTube Total Views) | 77 | ||
| Mobile Video: Bandwidth Services Analysis and Market Size | 77 | ||
| Podcast Downloads (Audio and Video) are Forecast at 8.9 Billion in 2011 | 79 | ||
| Podcasting Bandwidth Services Analysis and Market Size | 79 | ||
| Transit Commercial Market Value Analysis: 2011 81 | 81 | ||
| Internet Radio: Backhaul Bandwidth Services Market Value (95th Percentile Analysis) | 81 | ||
| Professional Video: Transit Bandwidth Services Market Value (95th Percentile Analysis) | 82 | ||
| User Generated Video Transit Pricing and Market Analysis (95th Percentile Analysis) | 83 | ||
| Video Advertising: Pre Roll Transit Bandwidth Services Market Size (95th Percentile Analysis) | 84 | ||
| In-Page Video Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 85 | ||
| Download Transit Bandwidth Services Market Size (95th Percentile Analysis) | 86 | ||
| Mobile Video Views and Advertising: Transit Bandwidth Services Market Size (95th Percentile Analysis) | 87 | ||
| Podcasting Transit Bandwidth Services Market Size (95th Percentile Analysis) | 88 | ||
| SECTION THREE | 89 | ||
| CDN Revenue, Account Share and Operational Analytics | 89 | ||
| CDN Revenue is Estimated at $1.86 Billion in 2011 | 89 | ||
| CDN Market Revenue Analysis: 2003 - 2014 | 91 | ||
| Akamai Generates 63.2% of Segment Revenue in 2011 | 69 | ||
| CDN Revenue 2010 - 2011 | 93 | ||
| Akamai Powers 20% of Total Unique CDN Accounts in 2011; Edgecast 15.5% | 95 | ||
| CDN Account Share: 2010 - 2011 | 95 | ||
| CDN Accounts Number 20,045 at Year End 2011 | 97 | ||
| CDN Annual Accounts: 2005 - 2011 | 98 | ||
| CDN Account Growth and Revenue Growth Differential Narrows Substantially in 2011 | 99 | ||
| CDN Revenue and Account Growth Rates: 2006 - 2011 | 100 | ||
| MRR Rebounds in 2011, Up 17.6% Over 2010 | 100 | ||
| CDN Monthly Recurring Revenue Analysis: 2005 - 2011 | 102 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 – 2014 (Part 1) | 103 | ||
| CDN Segment: Summary Revenue, Account, Performance Metrics and Infrastructure Profile and Analysis 2003 - 2014 (Part 2) | 106 | ||
| CDN COGS and Marginal Analysis: 2011 | 107 | ||
| Server Deployments Increased by 30% in 2011 | 110 | ||
| CDN Media Server Deployment: 2005 - 2011 | 111 | ||
| Cap Ex Analysis: Server Deployments and Account Growth | 111 | ||
| SECTION FOUR | 113 | ||
| Pro Video Delivery Ranked by CDN Contract/Vendor 2010 | 113 | ||
| CDN/Bandwidth Provisioning 2010 | 114 | ||
| Professionally Produced and Distributed Video: CDN Provisioning 2010 | 116 | ||
| Pro Video Delivery Ranked by CDN Contract/Vendor 2011 | 181 | ||
| Professionally Produced and Distributed Video: CDN Provisioning 2011 Half Year Analysis | 183 | ||
| SECTION FIVE | 216 | ||
| UGC is a Highly Concentrated Content Segment, Predominately Self-Hosted | 216 | ||
| UGC Video Publishing and Bandwidth Provisioning 2010: CDN Contract Share | 217 | ||
| UGC Video: 2011 | 227 | ||
| UGC Video Publishing and Bandwidth Provisioning 2011 YTD: CDN Contract Share227 | 227 | ||
| UGC and Social Media Video: CDN Contracts 2011 YTD | 229 | ||
| SECTION SIX | 232 | ||
| Online/Mobile Music Listening and Song Play Hours Dominated by Pandora and Shoutcast, Two Self-Hosted Brands | 232 | ||
| Online/Mobile Music Listening Hours by Bandwidth Provider: 2010 | 232 | ||
| Online/Mobile Music Listening and Song Play Hours 2011 | 234 | ||
| Online/Mobile Music Listening Hours by Bandwidth Provider: 2011 YTD | 234 | ||
| Internet Music Radio Listening Hours and Bandwidth Provisioning: 2011 | 236 | ||
| SECTION SEVEN | 243 | ||
| Q&A | 243 | ||
| 3CROWD TECHNOLOGIES | 243 | ||
| AKAMAI TECHNOLOGIES | 249 | ||
| ALCATEL-LUCENT | 256 | ||
| BITGRAVITY | 261 | ||
| CACHEFLY | 266 | ||
| CDNETWORKS | 270 | ||
| COTENDO | 275 | ||
| DACAST | 279 | ||
| EDGECAST | 283 | ||
| HIGHWINDS | 291 | ||
| INTERNAP | 297 | ||
| LEVEL 3 | 302 | ||
| LIMELIGHT NETWORKS | 306 | ||
| LIQUID WEB | 315 | ||
| MIRROR IMAGE | 319 | ||
| PANDO NETWORKS | 324 | ||
| WOWZA MEDIA SYSTEMS | 329 | ||