AccuStream Research: CDN Providers Post Strong Revenue Gains in '04 on Increased Streaming, New Applications.MONTEREY, Calif. -- Content distribution networks (CDNs) doubled -- and in some cases tripled -- revenue derived from their streaming media See streaming audio, streaming video and digital media hub. operations in '04 compared to '03, coinciding with an 80% jump in video streams served for the year and a 75% increase in Internet music hours. Retail contracts for streaming audio A one-way audio transmission over a data network. It is widely used on the Web as well as company networks to play audio clips and Internet radio. Computers in home networks stream audio (mostly music) to digital media hubs connected to home theaters. and video totaled about $230 million last year, with another $157 million needed to provision backhaul bandwidth for sufficient streaming capacity, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. Market Share: A Complete Business Analysis '04 and '05 published by AccuStream iMedia Research. CDN revenue for both streaming video A one-way video transmission over a data network. It is widely used on the Web as well as company networks to play video clips and video broadcasts. Computers in home networks stream video to digital media hubs connected to a home theater. and Internet radio Listening to audio broadcasts via the Internet. There are more than 4,000 broadcasts available on the Internet that can be streamed and played by a software media player in the computer or in a stand-alone Internet radio with the software built in. is estimated to grow at 40+% in 2005, with total retail and backhaul market value of between $450 - $600 million dollars for delivery of news, film, sports, music and entertainment. The report includes operational analyses of multiple CDNs, including business models, revenue, pricing, servers deployed, co-location networks, network topologies, channel partners, core service competencies, R&D investments and content contracts. The number of video streams and Internet music hours delivered by each CDN is broken out to reveal distribution share. According to the report, the average cost per gigabyte of streaming video transferred in 2004 was $1.75, compared to $2.15 in 2003. The average price to deliver a gigabyte of Internet radio was $1 compared to $1.31 in 2003. AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Akamai, MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). , Real Networks, Limelight Networks and Chaincast Networks are the largest content distributors. Some larger streaming portals such as Yahoo contract directly with carriers for bandwidth capacity. CDNs often focus on either Internet Radio or broadband video, although Akamai, AOL and Limelight Networks have market share in both categories. "In 2004, CDNs delivered strong operational performance, and top line revenue growth. CDNs are typically cash flow positive and even generate positive net income," commented Paul A. Palumbo, director of research at AccuStream. "CDNs are positioned as full service networks that provide everything from stream authentication and secure content on a global basis to music and movie download file management, and even sell advertising." AccuStream iMedia Research (http://www.accustreamresearch.com) publishes the monthly reports iBroadcast Stream Report, iBroadcast Avails Report, iBroadcast Mobile Content Report, and annual streaming media reports with extensive market data and expert analysis. 
We expect additional market consolidation to happen, driven by many factors including by the number CDN providers in the space, the value erosion and the race to the bottom from a pricing standpoint. We are moving many of our customers to lower risk providers, exploring new cloud solutions and also looking at value added solutions such as video platforms. I am happy to share our findings (cdnquote.com)
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