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Video CDN Market to Grow to $1.5 Billion by 2013 as Telcos Gain Stakes Reports Frost & Sullivan - The increasing global penetration of high-speed broadband access has popularized the use of video content (Content Delivery Networks) at higher bit rates and long form content
Video CDN Market to Grow to $1.5 Billion by 2013 as Telcos Gain Stakes Reports Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2009/01/30 - The increasing global penetration of high-speed broadband access has popularized the use of video content (Content Delivery Networks) at higher bit rates and long form content.

   
 
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The demand for web-based video has also received a leg up from the ubiquity of the Internet across consumer electronics, including the PC, smart phones, gaming consoles and media players. This, in turn, has fueled interest among telcos and is expanding the market for content delivery networks (CDN) – despite the current economic slump.

New analysis from Frost & Sullivan (ict.frost.com) authored by Dan Rayburn and Vidya Nath, World Video Content Delivery Networks Market, finds that the market earned revenues of nearly $400 million in 2008 and estimates this to cross $1.5 billion in 2013.

If you are interested in viewing the Table of Contents, which provides manufacturers, end-users, and other industry participants with an overview of the global video CDN market, then please visit cdnreport.com for further details.

Over the last 24 months, CDN vendors have raised over $400 million in capital and have introduced multiple services. With increasing number of media and entertainment companies revamping their online video distribution model and committing high investment to it, there is potential opportunity for the CDN market.

Similarly, corporations, governments, schools and universities, healthcare providers, and retailers have also jumped onto the video bandwagon, using it for training, marketing, and advertising. This longer, more frequent consumption of higher quality video content on numerous devices is creating a pressing need for video content delivery services.

This exponential potential of the web video delivery opportunity has cast the net wide and increased the number of stakeholders.

"If on one side, regional CDN vendors in Asia and Europe are expanding beyond their native boundaries, then on the other, large telcos the world over are expected to launch CDN services in 2009 and 2010," say Frost & Sullivan Analysts Dan Rayburn and Vidya S Nath.

However the market is not without its share of challenges, believes Dan Rayburn, Principal Analyst, Digital Media, Frost & Sullivan, and also the Executive Vice President of StreamingMedia.com.

He says that while expanding their services and reach, CDN vendors should retain focus on easing customers' purchasing decisions regarding vendors, offerings, pricing issues, and quality of service (QoS).

"As CDNs try to stand apart from the crowd, vendors will look to offer additional pieces of the entire video ecosystem, including solutions such as content creation, capture, transcoding, management, and reporting," observes Rayburn. "This is a crucial step for CDNs since these services are going to be increasingly in demand as the market continues to grow."

Since video is a bandwidth-intensive application, it requires high efficiency and scalability. These issues compel existing CDNs to constantly enhance their capacity and delivery as well as tailor their pricing models to the needs of various customers.

"Further, simply having an expansive network will not ensure a successful implementation," notes Vidya S Nath. "Telcos that enter the market will have to hone connectivity across their networks and establish an ecosystem to support video distribution."

World Video Content Delivery Networks Market is part of the Digital Media Growth Partnership Service program, which also includes research in the following markets: world digital asset management market, world video encoders and transcoders market, world nonlinear editing market, world disk storage for digital media market among other hot topics. All research services included in the subscription provide detailed market forecasts, opportunity analysis and industry trends built on extensive briefings with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

World Video Content Delivery Networks Market - N425

 
 
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Video CDN Market to Grow to $1.5 Billion by 2013 as Telcos Gain Stakes Reports Frost & Sullivan

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