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CDN Account Verticals and Revenue Performance: 2006 - 2010

Content Delivery Networks (CDNs) posted $1.16 billion in 2008 revenue, notching 30% improvement over 2007.

The U.S. market made up an estimated 57% of the global tally; combined geographies are forecast to grow at 19% in 2009.

Revenue attached to audiovisual verticals including professional video, video advertising, video advertising networks, CMS platforms, online music spins, UGV and podcasting totaled $550 million, or 47.3% of total billings.

Professional video (including advertising) remains the most penetrated and lucrative audiovisual vertical, with 76.2% of views delivered through CDN contracts. Going the other way, 20.4% of lower margin UGV volume was handled by CDNs, plus another 31.7% of online music radio spins and track plays.

Commercial market (retail and transit) value attending the delivery of audiovisual content (including self-hosted networks and CDN) was equivalent to $886 million in 2008, with bandwidth making up 60% of billable costs.

Bandwidth fees as a percentage of CDN contract value are forecast to tack downward through 2010. The report analyzes historical and current pricing and pricing models by contract type, including volume and rate alternatives.

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