1. CDN Research Data: World Content Delivery Networks Market
Dan Rayburn
Principal Analyst, Frost & Sullivan
Streaming Media West

2. The Video Segment for the CDN Market is becoming Increasingly Important
Source Frost & Sullivan

3. Market Drivers Growing Demand for Internet video in high bit rates
Growing Demand for Long-form content over the Internet
Exponential Increase in Internet Video
Increasing Penetration of Web Access Devices such as Set-top Boxes, Gaming Consoles, Media Players and others
Increasing investment by media and entertainment companies in Web video delivery
Consistently growing usage of video content by enterprise
Source Frost & Sullivan

4. Market Restraints
Scalability a consistent challenge for CDNs to cater to growing needs
Industry focus more on technology than developing viable business models
Web Advertising still not developed fully to boost Web video viability
Price continues to deter companies from adopting CDNs
Lack of industry standards for Internet video delivery
Alternative means of video distribution disrupts growth in the CDN market
Source Frost & Sullivan

5. Market Forecasts
The market is expected to achieve revenues over a third of a billion in 2008 and cross the billion dollar mark in 2011
Source Frost & Sullivan

6. North America Continues to Dominate but Asia Pacific is Showing Immense Growth Potential
Source Frost & Sullivan

7. The Video CDN Market is not the Sole Domain of Pure-play CDN Vendors Anymore
Source Frost & Sullivan

8. CDN Market - Financing, 2007-2008
CDN Funding Now Tops $400 Million In Past 18 Months
Adding up all the investments that CDNetworks, EdgeCast, Panther Express, Grid Networks, Highwinds, Velocix, Itiva, Move Networks, Pando Networks, Conviva, BitTorrent, ChinaCache, Rawflow, Oversi and BitGravity have gotten, it totals $314 million.
In addition to these providers, Kontki, SimpleCDN, Vusion, Highwinds and EdgeStream have all raised undisclosed amounts as well which puts the total amount of money raised into the CDN space well over $340 million.
And if we think of AT&T's CDN offering as a startup, which they basically are, with their $75 million investment into their network this year, that puts the total amount of money raised to over $400 million in the past 18 months.
And more funding is on the way. Additional CDNs will announce more funding.
For more funding details visit:

9. Industry Consolidation and Outlook: 18-24 Months
Acquisitions are always possible, but most CDNs don’t have enough revenue, applications or IP to make them an acquisition target over the next 18 months. Only three CDNs are doing more than $25 million a year in video CDN revenues for 2008.
Emergence of heavy weight Telco's within the CDN space make incumbents such as Limelight Networks and Akamai prime acquisition targets.
Bottom line, CDNs need to build some apps and create real value. Case in point, Nine Systems acquisition by Akamai.
In 2000 we had over 50 CDN vendors. In 2002, about a dozen. In 2004 there were six. Now in 2008 we have 50 again. Many CDN vendors won’t make it 24 months from now.

10. Additional Resources www.cdnlist.com www.cdnpricing.com