Streaming Media - 2008 Industry Sourcebook - (Page 50) industry update While the overall CDN revenue number is much larger for all forms of content, the $450 million to $500 million number is for the outsourced delivery of video in the U.S. market and is specific to video delivery, be it streaming, progressive download, live, or on-demand. While not all of the companies in the space provide public data on their revenue, many of them tell me off the record what they are billing, or I have other data to know their revenue. In these cases, I have grouped some of those companies’ revenue together in the list below so as not to expose data they have given me privately. ■ Internap—With the data that’s available, we can extrapolate a run rate of about $24 million for 2007, nearly all of which comes from the U.S. ■ Limelight Networks—Estimated to have done about $105 million for 2007; I estimate more than $95 million of that to be from the U.S. ■ Akamai—I estimate that about $350 million of the company’s approximately $625 million in revenue comes from its CDN offering. What percentage of that $350 million is specific to video and comes from the U.S. market is up for debate, but I estimate it to be about $300 million. ■ Level 3—The company didn’t do much in the way of video delivery in 2007—only about $2 million—since its streaming product didn’t launch until the end of the year, although its CDN product for video downloads has been around for about half the year. VeriSign—While I don’t have exact numbers for VeriSign, if we take the European business out of the picture, I estimate the company’s CDN revenue in the U.S to be about $8 million for the year, the majority of which was P2P-based from the Kontiki product line. (In February 2008, VeriSign announced it will be selling off all of its “non-core business,” including its video CDN division.) ■ Mirror Image, Velocix (formerly CacheLogic), Panther Express, CacheFly, and Advection.NET—Combined, these companies did about $20 million in U.S. video delivery in 2007. ■ EdgeCast, CDNetworks, and BitGravity—Combined, I estimate these companies did about $5 million for the year, as would be expected since they all just recently launched their services in the latter half of 2007. ■ PEER 1, NaviSite, and Ignite Technologies— Combined, I estimate they did about $8 million in 2007 for video delivery services in the U.S. ■ Regional service providers—While not typically classified as CDNs, as they tend to go after small- and mediumsized business, they still provide outsourced video delivery services and tend to focus in the U.S. market in particular. I estimate the entire regional service provider market at less than $20 million for 2007. ■ 50 STREAMING MEDIA INDUSTRY SOURCEBOOK 2008 http://Advection.NET
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