CDN Growth and market share shifts: 2002 – 2006

This report offers a detailed historical to present day analysis of Content Delivery Network (CDN) services from 2002 through 2006, including market share shifts between CDNs, pricing, media player format share in 2006, market value for both retail and backhaul streaming media contracts and more.

• A detailed analysis of gigabytes transferred pricing and market valuation models compared with 95th percentile pricing models, and why the latter has been the choice of the majority of UGV sites and networks in 2006

• A site by site analysis of the emergence of Flash in content streaming in 2006, with analysis revealing a 21.9% share of the media player market compared to 50.8% for Windows Media and Real Networks at 9.3%

• Bandwidth prices for streaming media (audio and video) have continued to decline over the past four years

• The market value (a.k.a. commercial market value) for streaming media in the media and entertainment content segments has been growing at robust double-digit rates over the past four years

• The market is worth an estimated $600 million in 2006, including direct bandwidth accounts that do not go through a CDN specialist for distribution (i.e. Yahoo, AOL and Real Networks)

• Since 2002, the market has invested $1.65 billion dollars to deliver streaming media (that excludes storage, hosting, applications layering)

• Table of Contents :

  INTRODUCTION TO CDN MARKET GROWTH AND SHARE SHIFTS 2002-2006
  Price per Gigabyte Transferred
  Retail Bandwidth Prices per Gigabyte Transferred: 2002 – 2005
  CDN Market Value: Retail Media and Entertainment Contracts
  CDN Market Value for Media and Entertainment Distribution: 2002 – 2005
  CDN Market Share: Video 2002 – 2005
  CDN Market Share Shifts: Streaming Video 2002 – 2005
  CDN Market Share: Audio 2002 – 2005
  CDN Historical Content Distribution Share: Internet Music Radio 2002 – 2005

  SECTION ONE
  Commercial Market Value of CDN and Direct Bandwidth Services for Streaming Media and Entertainment between $66 and $90 Million in ’02
  Internet Radio: Bandwidth Services Analysis and Market Size
  Streaming Video: Entertainment Bandwidth Services Analysis and Market Size
  Streaming Video Distribution Made Up Close to 60% of Total Commercial Media Services Market Value in 2002
  Streaming Media Bandwidth Services: Commercial Market Value 2002
  Total Bandwidth Services Commercial Market Value: Internet Radio and Streaming Video
  Bandwidth Services Pricing: Audio and Video Segment Comparison Based on per Gigabyte Rate
  Bandwidth Services Market Dynamics and Trends: 2002 in Historical Perspective
  2002 was a Year of Pricing Model Maturation
  Established Brands and New Entrants Captured Streaming Video Distribution Market Share in 2002
  Summary Data Analysis: CDN Video Streams Delivered 2002
  CDN Streaming Video Market Share 2002: Entertainment and Media Content Categories
  Bandwidth Provider Ranking–Video Streams Delivered 2001 (“Free” and estimated “Pay” streams)
  Internet Radio Distribution Totaled 914.5 Million Aggregate Tuning Hours in 2002, 43.7% through Independent Carrier Contracts
  Internet Radio Distribution Market Share Analysis
  Internet Radio Bandwidth Services Market Share Ranking

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