Increasing Over-the-Top Video Drives Opportunity for Content Delivery Network Services Past US$ 2 Billion Annually by 2011
SCOTTSDALE, Ariz., August 18, 2009 -
Over the next five years, the worldwide value of Content Delivery Network (CDN) services will pass US$ 2 Billion annually by 2011 and continue growing thereafter, reports In-Stat http://www.in-stat.com. Growth in CDNs is a result of increasing usage of “over-the-top” internet video, as well as their flexibility to manage content for delivery through multiple delivery channels to multiple device types.
“Over the coming years, In-Stat believes that Data Centers and CDNs will become the dominant approach for sourcing ‘everything on demand’,” says Gerry Kaufhold, In-Stat analyst. “This will not only enable owners and creators to have more control over their creations, but also provide viewers with more choices in programming and delivery methods.”
Recent research by In-Stat found the following:
Adaptive Bit Rate Video approaches will permit IP-networks to deliver a quality User Experience at lower bit rates.
The North American market will remain the dominant geographic segment for CDNs through 2013. However, Europe and Asia Pacific will see significantly higher growth rates.
In-Stat believes addressable advertising holds out the promise of a much more efficient use of advertising “spending,” but all segments of the ecosystem need to participate in the revenues to justify the infrastructure investments that must be made.
This research is part of In-Stat’s Multimedia Broadband Infrastructure service. By 2012, 92% of US households will be connected to Broadband, making the Internet the single most-widely available Content distribution system. Telephone companies, wireless carriers, TV networks, Internet Service Providers (ISPs) and Subscription-TV (Pay-TV) operators are making major investments to support Personalized Content services that use broadband. What happens on the Internet is shaping TV, and mobility is now a key growth area. The twin concepts of “the mobile Internet” and “computing in the cloud” are going to disrupt current business models because networks absolutely must inter-operate to be more efficient. Asset Management and Transcoding will be vital to move Content across an ever-growing range of devices that connect to a multitude of networks.
In-Stat’s MBI service provides vital insights about how competing service providers are extending their delivery capabilities across over-the-air, wired and wireless “final mile” networks to make Personalized Content the killer application. MBI sets up side-by-side comparisons among competing market segments and provides our opinions about how companies can succeed. MBI covers all geographic regions, keeping subscribers abreast of new developments or trends occurring anywhere in the world that may have an impact on their business.
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About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.
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