Increasing Over-the-Top Video Drives Opportunity for Content Delivery Network Services Past US$ 2 Billion Annually by 2011

Over the next five years, the worldwide value of Content Delivery Network (CDN) services will pass US$ 2 Billion annually by 2011 and continue growing thereafter, reports 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'. 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.

Recent research by In-Stat 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.

This Market Alert is drawn from the In-Stat research,   CDNs and Data Centers to Usurp Video-on-Demand (#IN0904016MBI), which covers the worldwide market for CDNs, data centers, and video services. It includes:

  • Forecasts of worldwide and regional CDN services through 2013.
  • Analysis of new business model options.
  • Discussion of CDN and Data Center technology and their implications for content providers, service providers, and consumers.
  • Brief profiles of vendors including: Akamai, Limelight Networks, DG Fastchannel, CD Networks, Level 3, Cotendo, Internap, Highwinds CDN, Signiant, Cisco, Juniper Networks, Alcatel/Lucent, Ericsson, Adobe Systems, Microsoft, Apple, Real Networks, Intel, Inlet, and Envivio.
For more information on this research or to purchase it online, please visit: or contact a sales representative:

The price is $2,995 (US).

This research is part of In-Stat's Multimedia Broadband Infrastructure service. By 2012, 92% of US households will be connected to Broadband, making the Internet the single most-widely available Content distribution system. Telephone companies, wireless carriers, TV networks, Internet Service Providers (ISPs) and Subscription-TV (Pay-TV) operators are making major investments to support Personalized Content services that use broadband. What happens on the Internet is shaping TV, and mobility is now a key growth area. The twin concepts of “the mobile Internet” and “computing in the cloud” are going to disrupt current business models because networks absolutely must inter-operate to be more efficient. Asset Management and Transcoding will be vital to move Content across an ever-growing range of devices that connect to a multitude of networks.

In-Stat's MBI service provides vital insights about how competing service providers are extending their delivery capabilities across over-the-air, wired and wireless “final mile” networks to make Personalized Content the killer application. MBI sets up side-by-side comparisons among competing market segments and provides our opinions about how companies can succeed. MBI covers all geographic regions, keeping subscribers abreast of new developments or trends occurring anywhere in the world that may have an impact on their business.

Related In-Stat research:

Web-To-TV Video Changes Everything

US TV Viewer's Response to Economic Turmoil

Monetizing the Internet Using Web 2.0 Business Models

The US Market for Multi-Screen Services

More Information on this Research

Sign up to receive email Market Alerts on this, and related topic