Accustream Research
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March 21, 2006

ACCUSTREAM RESEARCH: CDN SERVICES TOP $450 MILLION IN STREAMING, DOWNLOAD REVENUE IN '05

Monterey, CA. Combined commercial market value (backhaul, retail contracts) for streaming audio, video, streaming advertising and download entertainment media generated close to $450 million in 2005.

Content distribution networks (CDNs) grew their total revenue base (streaming and non-streaming accounts) by an average of 41.2%, according to the latest report published by AccuStream Research. Monthly recurring revenue (MRR) averaged over $8,200 for the year.

The report, CDN Market Dynamics, Analysis and Share: 2005 – 2006 includes provisioning analysis for retail contracts delivered through stand-alone CDN providers, as well as self-hosting networks such as AOL, Yahoo and Google.

The entire CDN and streaming bandwidth services market is poised to grow by over 30% in 2006.

For the first time, this annual CDN research study includes cost/revenue analysis associated with streaming advertising (audio, video, Flash and non-Flash) and download media (movies, television and music files).

The report contains an analysis of streaming server infrastructure, and the more than 9,500 dedicated servers currently in deployment, streaming market share by format (Windows Media, Real, Flash, Quicktime), costs per gigabyte delivered of streaming audio, video) and the costs associated with a typical download music file and movie with historical comparisons.

Extensive Q & A sessions with the leading CDNs are a key component to this comprehensive research study.

According to the report, the average cost per gigabyte of streaming video transferred in 2005 was $1.41, compared to $1.75 in 2004. The average price to deliver a gigabyte of Internet radio was $0.46/gigabyte transferred. Flash streaming video is typically priced at a premium to standard market rates.

“In 2005, CDNs really became the intelligent front and backend to the streaming media experience,” noted Paul A. Palumbo, director of research at AccuStream.

“CDNs continue to innovate on the application side while delivering customer value and creating a bottom-line business.”

“From Flash streaming, Podcast application development, IPTV to download file management and streaming advertising alliances, CDNs are well positioned to deliver the heavily branded broadband medium.”

AccuStream Research publishes the monthly reports iBroadcast Stream Report, iBroadcast Avails Report, iBroadcast Mobile Content Report, and numerous other annual streaming media reports with extensive market data and expert analysis.

Contact: Paul A. Palumbo, ppalumbo@accustreamresearch.com
(831) 393-1953

Accustream Research
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