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September 25, 2007

ACCUSTREAM RESEARCH: STREAMING AND DOWNLOAD MEDIA VALUE CHAIN FORECAST AT $4.9 BIL. IN '07

Salinas, CA The streaming and download media value chain is forecast to yield $4.9 billion in combined commercial market value in 2007, up 38.5% over 2006, according to an industry report by AccuStream Research.

The research report, Streaming Media Value Chain 2003 - 2007: CDN, Advertising, Subscription and Download Segment Analysis, combines and then individually analyzes four core segments contributing to value chain, supported by detailed historical and current year data.

The research, covering a five-year period, reveals CDN and bandwidth costs made up an average of 18.9% of the value chain. Advertising (pre roll and embedded video, audio gateway and inserted audio ads) 25.4%, subscription media 20.1%, and download content 35.6% of the combined total.

Reflecting the overall downward trend in wholesale and retail bandwidth pricing since 2003, CDN and associated distribution costs attached to streaming and download media have declined in overall value chain contribution from a high of 32.9% in 2003 to a low of 17.2% in 2007.

Individual segment analytics indicates download media growth at 49% for 2007, streaming advertising 41.1%, CDN and bandwidth services (retail contracts, backhaul and self hosting costs) 32.6% and subscription at 16.2%.

"Since 2003, when the market reached $560 million in value, there has been a steady upward climb to $4.9 billion in combined worth, a testament to how quickly audience demand motivated investment in both distribution and content assets required to facilitate a better experience and thereby expand the market," commented Paul A. Palumbo, research director at AccuStream.

"With distribution costs at an all time low, streaming advertising at an all time high, broadband penetration at a new peak, and the expansion of content categories now including professional, semi professional and user content, the value chain is delivering on the promise of a circular content, brand and user relationship," he added.

The report's four detailed sections thoroughly analyze each value chain component, including CDN pricing and revenue by content category, advertising revenue by avail type, subscription revenue by service or offering and download revenue by brand, service and offering.

AccuStream Research is a streaming, download, subscription and broadband advertising research firm, with consulting and primary market research expertise.

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

Accustream Research
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