Cost Of Streaming & CDN Services Report by StreamingMedia.com Shows 65% Are Spending Too Much; Costs for Outsourced Content Delivery Services Continue to Decline Yet Many Companies Are Still Paying Too Much.

MEDFORD, N.J. -- StreamingMedia.com -- the leader in streaming and digital media info online, in print and in person -- announces a new research report entitled The Costs of CDN and Streaming Services: 3rd Edition, "Vendor Pricing and Customer Expectations." The report is focused on the motivations for purchasing streaming services, the specific components and pricing models used, and the net costs of outsourced streaming.

Three related research projects contributed to the study: a Web-based survey that was administered via the StreamingMedia.com Web site; 44 half-hour telephone interviews with IT decision-makers who manage streaming media services for their companies; and a survey of CDN vendors regarding list prices and service capabilities including pricing from Akamai, Limelight Networks, Mirror Image, SAVVIS, and VitalStream.

"This report gives buyers of content delivery services the answers to the three key questions always being asked," said Dan Rayburn, executive vice president of StreamingMedia.com. "What should it cost for streaming and content delivery services? What are the factors that go into any given cost? How does my cost compare to the industry?" Rayburn added, "The Costs of CDN and Streaming Services enables any purchaser of delivery services to compare their pricing with what others are paying from the leading content delivery vendors in the market place."

This report gives readers the two or three data points that they, as buyers of CDN services, can give to their current or future vendor in order for them to be able to provide a baseline quote. It also explores the variables that impact the price and the trade-offs available to them to increase or decrease their overall costs for media delivery services.

Key findings of the report include details on the following topics:

--The Pricing Disconnect. Not surprisingly, there is a wide gap between what buyers of media delivery services say they are paying and what suppliers say they are charging. This is to be expected, as buyers often overestimate their savings, and vendors want to protect their margins. This report summarizes both ends of the spectrum and also provides the actual market norms for prices based on actual contract negotiations from the last 3 years.

--The Changing CDN Market. The media delivery market is undergoing rapid, dramatic changes. With Akamai's acquisition of Speedera in the spring of 2005, buyers are scrambling to find a viable "number 2" vendor. This report provides a ranking of CDN vendors by buyers. Based on reputation, VitalStream and LimeLight Networks look to be the main contenders to fill the role vacated by Speedera. However, other vendors, such as AT&T and Mirror Image, and even software solutions such as those provided by Kontiki have a chance to step up in this crucial post-consolidation environment.

--Getting the Right Price. Buyers always say price is their primary consideration. But at what cost? Research results show how requirements relating to commit rates, uptime availability, security, and customer service impact the overall price.

Additional information, including a downloadable table of contents on The Cost of CDN and Streaming Services: 3rd Edition, is currently available at www.streamingmedia.com/research.

Researchers, streaming media professionals, and IT technology purchasers continue to buy StreamingMedia.com's Research Reports to help them make decisions and gain a credible understanding of the industry. A complete listing of recent reports is available at http://www.streamingmedia.com/research/.

About StreamingMedia.com

StreamingMedia.com is a diversified media company serving and educating the streaming media industry and community. Our business consists of three core areas: our web site StreamingMedia.com, exhibitions and conferences, and research and publications. Lead by a team of recognized industry experts, StreamingMedia.com is dedicated to providing industry professionals and corporations utilizing digital media technology with global real-time news, resources and services through editorial, discussion lists, feature articles, and much more.

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