Internet Marketing

Research and Markets: Content delivery networks -CDN- Services for Streaming Video and Internet Radio Estimated at between $90 million and $115 Million Dollars in 2003

DUBLIN, Ireland--(BUSINESS WIRE)--May 6, 2004--Research and Markets (http://www.researchandmarkets.com) has announced the addition of Content delivery networks (CDN) Market Share Report 2003 and Forecast 2004 to their offering.
This report provides a detailed analysis of the streaming media content distribution business in 2003, including forecasts for 2004.

This report's findings and data analysis reveal:

- Content delivery networks (CDNs) individually delivered double or triple the streaming content in '03 compared to '02, but falling prices at the wholesale level lead to more aggressive pricing for retail contracts. The CDN market was worth close to $350 million dollars in 2003, including hosting, storage, tracking, quality assurances, direct and indirect bandwidth costs associated with streaming media.

- CDN services for both streaming video and Internet radio is estimated at between $90 million and $115 million dollars in 2003, with provisioning or backhaul capacity worth another $50-$65 million, for a total bandwidth services market of $150 million to deliver news, film, sports, music and entertainment streaming media.

- On the backhaul side (costs associated with buying bulk bandwidth/capacity from carrier networks and operators made by destination networks) is estimated at between $50-$65 million dollars in 2003, indicating a total bandwidth services market size to both ensure sufficient distribution capacity and actual direct delivery costs of about $150 million dollars in 2003

- CDNs were able to price basic retail CDN services at very competitive rates due to falling backhaul bandwidth prices

- CDNs experienced triple-digit growth rates in 2003, in terms of data transferred compared to 2002, but falling prices meant that revenue grew at double-digit rates

- CDN is a high growth market segment, but only a small part of what distribution networks provide in terms of bandwith and content-related services and revenue generation

- Bandwidth prices stabilized during the year, and while streaming more than doubled in terms of gigabytes delivered, CDN distribution revenues only grew by 60+% in '03, according to the CDN Market Share Report '03, a comprehensive analysis published by AccuStream iMedia Research.

- Value added services such as monitoring, reporting, stream quality guarantees, hosting, co-location, security, custom integration fees and storage attached another $200-$250 million to CDN businesses associated with that streaming media.

- The average cost per gigabyte of streaming video transferred in 2003 was $2.15, for the full year. The average cost to deliver a gigabyte of streaming Internet radio was $1.31 for full year 2003.

- AOL, Real Networks and Yahoo are the largest content distributors, and the largest consumer of bandwidth services, and typically contract directly with carrier suppliers for their capacity.

- Independent CDNs such as Akamai, Speedera, LimeLight Networks, Chaincast Networks and others have either a focus on Internet Radio or broadband video, and maintain distribution contracts with some of the largest streaming media brands online.

For more information visit http://www.researchandmarkets.com/reports/c1762

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Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax : +353 1 4100 980

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