THE WORLDWIDE value of content delivery network (CDN) services is poised for significant growth over the next five years, according to new research from In Stat.
The research CDNs and Data Centers to Usurp Video-on-Demand predicts that increasing usage of “over-the-top” internet video, in addition to its ability to manage content for delivery through multiple delivery channels to multiple device types, could push revenues to US$ 2 Billion annually by 2011.
“Over the coming years, In-Stat believes that Data Centers and CDNs will become the dominant approach for sourcing ‘everything on demand’,” said In-Stat analyst Gerry Kaufhold in the press release. “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 also 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.
