Accustream Research
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May 22, 2007

ACCUSTREAM RESEARCH: CDN SERVICES EXPAND TO $635 MILLION IN STREAMING, DOWNLOAD REVENUE IN '06

Salinas, CA Combined commercial market value (backhaul, retail, self-hosting) for streaming audio, video, advertising, progressive download and download entertainment media generated approximately $635 million in 2006.

Media and entertainment, estimated at 40% of the market, is part of a $1.1 billion total retail segment, with an additional $500 million in transit provisioning.

Major CDNs grew their total revenue base by an average of 50.8% to $731 million, according to the latest report published by AccuStream Research. Monthly recurring revenue (MRR) rose by 67% to $10,314.

Thirteen CDNs analyzed in this report increased total accounts by 25% during the year, ending at 5,800.

The report, CDN 2006 - 2007: Market Size, Share, Metrics and Analytics includes gigabytes transferred and 95th percentile analysis modeling for retail contracts delivered by CDNs and for self-hosting networks AOL, Real, Yahoo and Google.

The entire CDN and streaming bandwidth services market is growing at a rate of 33% in 2007.

CDN servers in deployment rose by 50%, and streaming media servers by 74% in 2006. The average cost per gigabyte of streaming video transferred in 2006 was $1.00, compared to $1.41 in 2005, which included the Flash premium.

The average price to deliver a gigabyte of Internet radio was $0.60/gigabyte. Backhaul and UGV are analyzed on 95th percentile models. Average retail rates ranged from $30 - $115 per Mbps of capacity, lower for wholesale.

Research indicates Flash has gained share, and closing in on Windows Media, based on total CDN video gigabytes delivered (including advertising). Flash progressive download experienced strong take up in 2006.

Syndication platforms Brightcove, Maven Networks and The Platform support Flash progressive download. The UGV content segment is almost entirely Flash progressive download. Flash servers are not needed for progressive downloads.

"It's an exciting time in the CDN segment, as providers deploy and or acquire the scale, intelligent storage, networking and content management systems necessary to position their businesses for another round of broadband media growth, commented Paul A. Palumbo, director of research at AccuStream.

AccuStream Research is a publishing, research and consulting firm that releases streaming, CDN telecom, advertising and download media reports with extensive market data and expert analysis.

Contact: Paul A. Palumbo, ppalumbo@accustreamresearch.com
(831) 757-2556

Accustream Research
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