Akamai has increased its market share of the cloud video service market serving Media & Entertainment companies to nearly 30% in early 2013, from about 27% in 2012, with no close competitor – other companies competing in the market all have less than approximately 5% market share. Akamai had $322 million in revenues during the first half of 2013 of a market expected to be worth $2.36 billion by the end of the year. This market is composed of various business models, including content delivery networks (CDNs), online video platforms (OVPs), managed video platforms (MVPs), and video content management systems (VCMS or CMS).
“The CDN and related markets are poised for a round of consolidation,” comments Sam Rosen, practice director at ABI Research. “We expect horizontal consolidation – where rival CDNs combine to gain scale in their competition with Akamai – as well as veritcal consolidation – where CDNs bring in functions, especially from OVPs, to compete for the largest content producers.” Recently, Highwinds closed $205 million in private equity funding (August 8th), citing growth as well as M&A opportunities, while rival EdgeCast closed $54 million. “It’s clear that big investors see space in the market for a second standalone CDN to become a clear number two in the market.”
“Akamai’s historical rival, Limelight Networks, has lost its way,” adds Rosen. “Limelight’s revenues have turned from relatively flat to arching downward in a growing market. The market for CDN is showing in excess of 15% annual growth. Limelight has started messaging about digital presence that speaks more to small and medium business rather than large enterprise buyers – although, part of the strategy includes OVP type functions which may be valuable for media publishers.”
These findings are part of ABI Research’s Cloud Video and Video Hardware Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Asia: +65 6950.5670