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Episode 22: The Latest Engagement Data and Earnings Recap from Disney, Fubo and DISH

Podcast Episode 22 is live! This week we breakdown Q1 2022 calendar earnings from Disney, fuboTV and DISH including subscriber gains/losses, ARPU and revenue growth rate. We also detail some engagement numbers highlighting what engagement looks like across gaming (Roblox, Activision Blizzard), trading (Robinhood, Coinbase), social (Facebook) and other platforms showing how consumer’s behaviors have changed since the pandemic. Thanks to this week’s podcast sponsor, Agora. 

Companies, and services mentioned: Netflix, Disney, fuboTV, DISH, Sling TV, AMC, Hulu, EPSN+, Hotstar, YouTube TV, Vizio, Facebook, Roblox, Peloton, Carvana, Coinbase, Activision Blizzard, Robinhood, Charter, Call Of Duty.

NAB Show Streaming Summit Videos Now Available for Viewing

All of the conferences sessions and presentations from the NAB Show Streaming Summit are now online for viewing at: https://nabstreamingsummit.com/videos/2022vegas/

Thanks to Mobeon Media for doing all the AV capture at the event and to Kaltura for hosting all the videos. #nabshow #streamingmedia #streamingsummit

The next NAB Show Streaming Summit will take place in NYC, October 19-20 at the Javits Convention Center. Full details and the call for speakers will be announced at the end of May.

Episode 21: Earnings Recap; Paramount, Roku, Comcast, Akamai, Limelight, Google, Amazon, Brightcove, Fastly, Vimeo, Charter, Verizon

Podcast Episode 21 is live! This week we breakdown the key numbers you need to know from Q1 earnings reports including updated subscriber and ARPU numbers from Paramount+, Roku, Peacock TV and cord cutting numbers from Charter, Comcast and Verizon. We also detail the revenue growth rate, GAAP net loss/gain from cloud vendors and streaming vendors including Akamai, Alphabet, Brightcove, Fastly, Limelight, Microsoft, Vimeo. Come up to speed on important Q1 earnings you should know about, all in 30-minutes.Thanks to this week’s podcast sponsor, Agora. 

Companies, and services mentioned: Comcast, Peacock TV, Paramount+, Roku, Amazon, Fastly, Limelight, Akamai, Brightcove, WicketLabs, Microsoft, Amazon Prime Video, NFL, Alphabet, YouTube TV, Vimeo, Charter, Verizon.

Podcast Episode 20: NAB Show Special, Thoughts and News From The Event

Podcast Episode 20 is live! This week we discuss some of the news from the NAB Show, detail some of the products and services we saw on the exhibit floor and talk about the hottest topics discussed at the Streaming Summit. We also detail attendee numbers, some of the NAB’s plans for the new show in NYC in October, how engineering teams are building out video applications and what the future of the media business looks like. Thanks to this week’s podcast sponsor, Agora. 

Companies, and services mentioned: Meta, Agora, FOX Sports, LaLiga, Hulu, Sling TV, Netflix, HBO Max, Eluvio, Livepeer, Brightcove, Mux.

Google Launches Media CDN Offering for VOD, Downloads and

Google has announced a new commercial CDN offering called “Media CDN”, as part of their Google Cloud platform. You can listen to this special podcast I did with David Reisfeld from Google for more details on the service. At launch, the new CDN offering will support on-demand video and large object downloads with Google planning to add support for live streaming later in the year. Google is targeting customers with at least 10PB a month of delivery or multiple Tbps of delivery. Google tells me they plan to be aggressive on price, but isn’t trying to be a low-cost leader in the market. Google’s goal with their CDN offering isn’t to compete on commodity CDN business but rather sell Media CDN as part of a much larger contract that includes many cloud-based services.

Google’s Media CDN platform will leverage some components of the YouTube CDN platform and Google built out a new control and data plane to let customers have control of the Media CDN platform, since YouTube has always been a private platform just for YouTube content. The new service is all API driven and you can listen to the podcast to learn more about Google’s product road map, what media services they plan to add through a partner ecosystem, how Media CDN ties into their compute platform and how Google plans to measure QoE of their new Media CDN offering.

Podcast Episode 18: Detailing The Challenges and Opportunities in Roku’s Business

Podcast Episode 18 is live! This week we breakdown Roku’s business model discussing their challenges but also the large opportunity they have in the market when it comes to the strength of their advertising platform. We also discuss Roku’s ARPU, international growth and the success they have seen in their OS platform for TV manufacturers. We also highlight some AVOD news in the market and discuss Netflix adding an ad supported tier (before Netflix earnings came out). Thanks to this week’s podcast sponsor, Agora. 

Companies, and services mentioned: Roku, HBO Max, Hulu, Netflix, Apple, Facebook.

Detailing Salesforce’s Churn, Retention and Engagement Platform for Video

In a recent survey by Salesforce, 66% of customers expect brands to understand their unique needs and expectations, yet in reality, they found that only 34% of companies generally treat their customers as unique individuals. To close this gap, media companies are racing to create personalized experiences for their customers, especially when it comes to streaming video services. Personalization has become so ubiquitous that most customers now expect nothing less from all of their interactions.

Given the breadth of video choices and the competition for attention in today’s market, when customers don’t feel their expectations are being met it’s easier than ever to switch. On average, 80% of customers say the experience a company provides is as important as its products and services. The “Amazon effect” of simple, fast and predictive has set a high bar for all industries.

For many media companies, customer expectations are a moving target and it can be difficult for them to figure out the right combination of content, bundling, pricing and what a good user experience looks like. Even more difficult is how companies are collecting and measuring user engagement, churn and retention to grow their service. A topic I have covered in detail on one of my recent podcasts.

Delivering personalized subscriber experiences across every stage of the journey is not easy, and streaming services require a comprehensive platform to manage the complexities. Media companies face daunting challenges across the entire subscriber lifecycle — leading to decrease in revenues and operational efficiencies, and higher costs if not addressed. Here are some of those business challenges across the attract, acquire, service, engage and retention phases:

  • In the attract stage, companies struggle with launching new products, promotions, bundles and add ons and making changes to their pricing. For some companies, it takes months to create and launch a new package, and requires their developers to touch code every time they want to make a price change.
  • In the acquire stage, there are complex onboarding journeys, often saddled with too many steps to sign up as well as inconsistent experiences across devices.
  • In the service phase, with data spread across the organization, agents are toggling through multiple systems, leading to no 360 view of the subscriber, longer call times and sub-standard customer care.
  • In the engage phase, companies find difficulty in personalizing offers and recommendations. How many times do we all spend browsing through content, not knowing what we want to watch? Or seen an ad on social media that has zero relevance to us?
  • In retention, with no visibility into real-time customer data and behavior, companies are unable to create any lasting and relevant loyalty programs for their customers.

To aggravate the already challenging tasks, the foundational challenges are imminent. Most companies are saddled with a complex software infrastructure which means data is likely siloed all over the organization. This makes it nearly impossible to create a single view of the subscriber, which makes servicing them an even more difficult task. All these challenges lead to significant revenue leakage and margin erosion, which is why none of the OTT services will disclose their churn numbers. Companies are leaving money on the table and are not operating as efficiently as they should.

I’ve spent the last few months looking at Salesforce’s solution to manage the subscriber lifecycle which includes attraction, onboarding, service, engagement and retention. Their goal is to help publishers drive the growth of subscriber revenues, deliver personalized and omni-channel subscriber care, and maximize retention, as defined by the service. At the heart of this solution is Salesforce Media Cloud’s Grow Subscriber Relationships application, complemented by Marketing Cloud, Einstein, Tableau Analytics, and Sales Cloud and Service Cloud.

Many of the OTT services I regularly speak with struggle with the ability to quickly launch new promotions, bundles, add ons, and making pricing changes. Some of them have told me it can take months just to roll out a pricing change. Streaming services need a centralized and flexible product catalog and media-specific CPQ (configure, price, quote) that supports attribute-based pricing and highly complex business rules. This allows them to display the most relevant subscription packages, products, bundles and promotions and rapidly launch new packages, and make pricing changes, all with clicks not code. Setup properly, companies can accelerate their time to market and streamline the complex and cumbersome process of product launches and pricing changes. This is one of the areas where I see Salesforce winning deals in the market, signing up OTT services to use their platform for their retention, churn and engagement needs.

With subscriber data spread and siloed across the organization, support personnel at OTT services find themselves toggling through multiple systems, leading to longer call times and sub-standard customer care. I’ve witnessed this first hand, like many others have, when calling into support and being asked for information they should already know about how you use the platform. OTT services need to have a single source of subscriber truth by integrating disparate data, allowing for streamlined, personalized proactive subscriber care and case management. They also need to support guided flows for both full and self-service channels, leveraging these tools to deflect calls and allow subscribers to rapidly make account changes on their own. This is something many OTT services don’t allow outside of cancelling their service or changing billing information.

Salesforce also takes an interesting approach by integrating with Slack so they can further elevate and streamline the care experiences by quickly resolving and troubleshooting with case swarming. Case swarming is a collaborative approach to customer service where support agents for an OTT service can bring in a team of skilled experts from across the organization, sales, support, billing etc. to solve complex service cases. During the case-swarming process, support experts share background knowledge and resources with agents so that once a resolution is reached, the team documents the steps in a knowledge article to help other agents with similar issues in the future. I’ve personally found this doesn’t currently happening within a lot of customer service departments.

When it comes to engagement, OTT services must have a platform that surfaces upsell and cross-sell opportunities that leverage customer insight profiles, current services and purchases, and consumption engagement to suggest the next best action across sales and service interactions. Salesforce uses an integrated set of AI technologies called Einstein, that helps companies boost productivity and discover relevant patterns in the data, whether that data resides in the Salesforce platform or outside. This insight can then be leveraged by sales to anticipate new opportunities and by marketing to create predictive journeys and personalize experiences. It can also be utilized by service and support to proactively resolve issues before they happen and by technical dev teams to create better apps.

Salesforce says their Einstein AI technology is already being used by content owners to uncover timely and actionable insights, such as subscribers with a high propensity to churn or upgrade, giving OTT teams the opportunity to drive retention and growth with personalized journeys and subscriber care experiences. It is also being leveraged to predict business outcomes, such as churn or lifetime value and delivers relevant recommendations to viewers. Salesforce says one of the keys to their platform is their approach to open API support that allows them to tie into partners like Amazon Web Services for content-driven commerce experiences and targeted ad placements. They also have platform partners with Deloitte’s customer lifetime value accelerator offering and with Conviva for their continuous measurement platform.

With so many streaming services in the market, consumers are and will continue to be overwhelmed with choice. As a result, video services are going to have to do a better job of making churn, retention and engagement a key part of their strategy going forward and look for solutions and strategies that actually address the problem.

HBO Max: New Apps Coming for Apple TV, Eliminates All Mid-Roll Ads on Select Movies, New Roku App Reduced Crash Rate by 90%

HBO Max says they are in progress on the migration of tvOS to a new platform and the final phase of replacing their connected TV apps will include updates to Amazon Fire TV and Xbox devices and is expected to roll out soon. Updates were also made to the partners who have already migrated to the re-built app including Roku, PlayStation4/5, Android TV + Set Top Boxes (STBs), Samsung Tizen, Xfinity X1, Cox, LG, Vizio and Vodafone/Sagemcom.

The connected TV platforms that have switched over thus far have shown significant performance improvements with a nearly 90% crash rate reduction on Roku (based on 6 months of performance). Android app launch time decreased by nearly 50% and they have seen a 40% average decrease in homepage load time on PlayStation and Roku. The HBO Max app on Apple TV is currently in the process of being replatformed to provide better functionality and an improved tvOS user experience.

HBO Max has also introduced a “Brand Block InFront Ads” experience on HBO Max with Ads, which enables brands to sponsor an up-front ad experience for viewers by eliminating all mid-roll ads on select movies. Consumers can now watch up to 90 seconds of video ads before a movie begins so that it runs in its entirety ad-free, with no interruptions. (I personally like this user-experience a lot)

HBO Max says more than 91 in-market bugs have been resolved in the areas of accessibility, content discovery, clients and platforms, purchase and identity, and the video player experience since the start of the year. Here’s a list of some of those updates:

  • Tizen: Fixed a critical issue with some Tizen models where playback would fail on the first attempt but succeed on the second. Reduced playback failures to nearly 0%.
  • Safari: Added a fallback to a different video encode when the first fails. Reduced playback failures by over 60% and customer service contacts by over 80%.
  • Cursor on Desktop: The cursor is now hidden for users on desktop devices.
  • Chromecast: Extended the “Skip Intro” feature to Chromecast. Users now have the ability to see and act on the skip option from the app while in an active Chromecast viewing session.
  • Android & iOS: Users will now be able to “pinch” to zoom in/out in the player, allowing them to toggle between widescreen/fullscreen views. This will allow users to take advantage of the screen real estate.
  • Roku: Users now have full multi-language playback capabilities and updated player designs.
  • Autoplay Setting: Users can now manage their Autoplay settings under the “Experience” tab in settings, addressing trending customer feedback. (Android TV, Samsung Tizen, Xfinity X1, Cox, LG, Vizio & Vodafone/Sagemcom)
  • The Scrollable Immersive Hero: Banner videos are now scrollable, allowing users to choose between multiple assets, providing them with more control over their browsing experience. (Apple TV, Android TV, PlayStation 4/5, Roku, Samsung Tizen, Xfinity X1, Cox, LG, Vizio and Vodafone/Sagemcom)

Kudos to HBO Max for always being willing to discuss what they are working on to make their user-experience better. Other OTT services should take note and follow their example.

Leaving Frost & Sullivan As Analyst, Open To New Opportunities Around Data and Research

After 15 years as a Principal Analyst at Frost & Sullivan, I will be leaving the company as an employee. Frost has changed coverage areas and will no longer focus on Digital Media. I am still interested in a lot of aspects around market sizing, methodology, data collection etc. and am open to new opportunities. Please contact me if you’d like to discuss ideas.

For vendor briefings, nothing changes. I have always done briefings with vendors at any time, free of charge, and will continue to do so. None of my contact information changes.

I’d like to thank Frost & Sullivan and my boss Mukul Krishna for 15 great years with the company and I wish Frost all the best in their business.

Podcast Episode 17: Debating The Holy Grail Of The Streaming Industry, OTT Service Aggregation

Podcast Episode 17 is live! This week we discuss the holy grail of of the streaming media industry, a single platform to aggregate streaming media services. With new Discover and Universal Watchlist  functionality from Plex and news from Verizon about their +Play platform to centralize subscription services, we debate what might really take place in the market. We also cover some streaming viewership numbers from March Madness, the news of Disney+ getting live content with Dancing With the Stars and breakdown some of the technical limitations of the MLB stream on Apple TV+.

 Thanks to this week’s podcast sponsors, Agora and NPAW.

Correction: The MLB games on Apple TV+ will be free for the “first 12 weeks”, not just the first game like I suggested.

Companies, and services mentioned: Apple TV+, MLB, Disney+, Plex, Verizon, Netflix, Peacock TV, NFL.

PE Firm PSG Acquires Zype, ftrack, iconik, Celtx, Wildmoka, Launches Backlight

Backlight, a new technology company backed by growth equity firm PSG has launched in the market along with the news that it has acquired ftrack, iconik, Celtx, Wildmoka and Zype. PSG led the investment of $200M+ into Backlight for all the acquisitions and future working capital of the companies, but isn’t disclosing how much it paid for any of the vendors. The most well known of the bunch and largest in revenue is Zype, which raised close to $19 million in funding since inception.

Interestingly enough, the team at Backlight isn’t looking at the new company as the next big platform in the market. It’s actually the opposite. The value that they’re bringing to these existing small companies comes from the scale and infrastructure Backlight provides with a holding company strategy. In turn, this creates more opportunity for their new business units to focus on creating the best possible tools and solutions, while removing a lot of the barriers of scale that small companies encounter.

Backlight states that its mission is to serve media, entertainment and video-forward customers with cloud-based solutions that dramatically improve every step of the media content lifecycle. Each of the business units provide customers with different solutions to help them create content experiences.

The Backlight business units are:

  • ftrack is the creator of ftrack Studio, cineSync, and ftrack Review, the Emmy and Academy Award-winning production tracking, interactive media review, and team collaboration platforms for the creative industries. ftrack’s solutions are designed for producers, supervisors, artists, and pipeline developers to collaborate with anyone, anywhere.
  • iconik is a cloud-native, SaaS media management solution that is designed for users to share files from any storage, collaborate on video, and enrich media with AI for high searchability—all with great ease and the ability to scale to serve solo creators or large global teams.
  • Celtx is an all-in-one solution for writing, planning, and managing media production that is used by millions worldwide. Celtx provides pre-production planning software, including scriptwriting, storyboarding, shot-planning and budgeting, to in-house production teams, agencies, film schools and universities, game studios, and media & entertainment companies.
  • Wildmoka is a platform for the creation of live and near-live content in Sports, News and Entertainment. It has won several awards for its AutoReZone technology, which helps broadcasters provide a mobile-first experience. Wildmoka’s cloud-native Digital Media Factory aims to empower broadcasters and rights owners to produce and deliver content from any source, to any destination, in any format, at speed and at scale.
  • Zype provides the infrastructure for digital video with a cloud-based platform to manage and distribute enterprise-grade video across the web, mobile, TV, and social media. Offering both developer-friendly tools such as customizable APIs as well as turnkey solutions for OTT apps and linear/FAST channels, Zype’s SaaS solutions enable video creators or distributors to quickly build, launch and manage superior video products at scale

As we’ve seen, the market rewards growth and scale, and puts a premium on growth at scale. In speaking with Ben Kaplan (LinkedIn), Backlight’s CEO, his goal for these businesses is to put them in the best possible situation where they can focus on products and services and help drive the whole portfolio towards growth at scale. Across all the companies, Backlight has about 300 employees and expects to be 350+ by the end of this year.

Podcast Episode 16: The MLB and NFL Are Chasing “Streaming” Money, At The Risk of Losing Viewers and Fans

Podcast Episode 16 is live! This week we discuss the complex streaming sports licensing business and the challenge sports fans now have in finding and consuming games from MLB and the NFL. With both league’s doing exclusive streaming only deals for distribution, many consumers will now need cable or cable like bundles to get access to all games. With MLB on Apple TV+, Peacock, ESPN, TBS and some RSN services, it’s getting to be a complex mess. The NFL is also getting more complex with Thursday night games now exclusive to Amazon Prime Video and won’t be broadcast anywhere else, even in local markets. We debate what the impact could to the NFL and MLB when it comes to the future of fan viewership and engagement. Thanks to this week’s podcast sponsors, Agora and NPAW.

Companies, and services mentioned: Apple TV+, MLB, NFL, Amazon Prime Video, MLB.TV, Sinclair, Peacock, ESPN, TBS.

Podcast Episode 15: Debating The Impact of Password Sharing and Free Trials; Questioning Who’s Watching AVOD Services; The Financial Impact of Lower Priced Ad-Supported Tiers

Podcast Episode 15 is live! This week we debate the real impact that password sharing could have on revenue and ARPU of streaming services. We also try and decipher confusing data from Antenna on the conversion rate from free trials to paid subscribers. We question who’s watching AVOD services when so much of the content is old and not exclusive to any single platform and discuss what the financial impact could be to OTT services when adding a lower priced ad-supported tier. And we touch on the launch of CNN+ and wonder who the target demographic is for the service when so much news content is now just commentary.

Companies, and services mentioned: Netflix, Antenna, YouTube TV, Pluto TV, Amazon Prime Video, HBO Max, Disney+, CNN+, Roku, Xumo, Tubi, IMDb TV, Vizio, Discovery.

NAB Streaming Summit Presentation: Serving Netflix Video Traffic at 400Gb/s and Beyond

The program and speakers for the Streaming Summit at the NAB Show are now going online and I’m pleased to announce that Andrew Gallatin from Netflix will be presenting a case study on how Netflix does such a great job delivering video at scale. You can expect to see nearly all speakers and sessions online by mid-week. #netflix #nabshow #streamingsummit #streamingmedia

Podcast Episode 14: NAB Show Streaming Summit Preview; Discussing the Future of Conferences and Hybrid Events

Podcast Episode 14 is live! This week we preview some of the speakers and content that will be at the NAB Show Streaming Summit, taking place April 25-26 in Las Vegas. Hear what companies like Netflix, HBO Max, Paramount+, Disney, Fire TV, FOX, MotorTrend, La Liga, DAZN and others will be discussing and some of the main topics that will be covered in the program. We also discuss how industry conferences have changed since the pandemic, the role of hybrid events, what show organizers are doing well and what others need to improve on.

Companies, and services mentioned: Netflix, HBO Max, Paramount+, Disney, DAZN, fuboTV, Oracle, Red Bull Racing, AWS, Salesforce, Korea Content Platform, Adobe, Dolby, Samsung, LG, Demuxed, Roku, Fire TV, Vizio.

Podcast Episode 13: Breaking Down The Apple TV+ and MLB Deal; Verizon Launches New Aggregation Platform +play, Hulu Makes Unlimited DVR Free

Podcast Episode 13 is live! This week we discuss the Apple and MLB deal and debate the importance of sports streaming to the content strategy of Apple TV+ going forward. We also highlight what the deal might mean for other sports streaming companies like Sinclair’s DTC service, which will have go-fenced games from some MLB teams and we talk about the difficulty consumers are having in finding sports content from one league on a single platform. The discussion also breaks down the news by Verizon of a new platform called +play, which will allow consumers to purchase and manage some of their favorite subscriptions across entertainment, audio, gaming, fitness, music, all with a single point of billing.

Companies, and services mentioned: Apple, MLB, Sinclair, Apple TV+, MLB.TV, Netflix, Hulu, Verizon, Roku, Vizio, LG, Samsung, CNN+, Verizon Fios, Disney, NBCU, Peacock TV, YouTube TV, Amazon Prime Video, Antenna, FOX Nation, Sony.

Articles Mentioned


Save The Date! NAB Show Streaming Summit Mixer, Monday April 25th, Open To All

If you are going to the NAB Show, on Monday April 25th we’re having a streaming mixer after the first day of the Streaming Summit, starting at 5pm on the Level 3 Terrace in the West Hall. No RSVPs are needed and all are welcome as long as you have any type of NAB badge. Thanks to our first round of happy hour sponsors including Agora, Amazon Web Services, Firstlight Media, Oracle, Smart AdServer and NTTVC, with more on the way! #streamingsummit

Podcast Episode 12: HBO Max Gets Into Live Sports; The Challenges and Opportunities for CTV; Vizio’s AVOD Revenue Growth

Podcast Episode 12 is live! This week we highlight HBO Max entering the live sports market with the news that they will broadcast more than twenty Women’s and Men’s National U.S. Soccer matches each year. We also discuss what Disney’s new ad-supported subscription for Disney+ might look like, when the option launches in late 2022. We also break down AppLovin’s acquisition of CTV platform Wurl for $430 million, based on projected 2023 revenue of $75 million and the challenges and opportunities for the entire CTV market going forward. 

Companies, and services mentioned: HBO Max, WarnerMedia, Netflix, Turner Sports, Disney+, Paramount+, Netflix, Vizio, Pluto TV, AppLovin, Wurl, Human, fuboTV, Roku, Samsung, LG, NBC Sports.



Articles Mentioned


Limelight To Acquire Edgecast from Apollo Funds For $300M, Rebrand as Edgio

Limelight Networks has announced their plans to acquire Yahoo’s Edgecast from Apollo Funds in an all stock deal valued at approximately $300 million, or 1x Edgecast’s 2021 total revenue of $285 million. (Listen to my podcast here with Limelight’s CEO Bob Lyons on the deal)

Following the approval of the deal, which is expected this summer, the combined companies will rebrand under the new name of Edgio. Limelight is also getting $30 million in cash from Apollo Funds and Apollo Funds has the potential to earn an additional $100 million if Limelight’s stock hits certain targets within a 3-year period. Yahoo will retain a minority stake in the newly combined company.

During Q4 2021 earnings, Limelight projected 11% year-over-year revenue growth in 2022, but now with the combined companies, Limelight has established a long-term strategic target with a revenue growth rate of 20-25% and 60%+ gross margins. In my interview with Limelight’s CEO, he said he expects the integration of both companies to be done by late 2023.

I had been hearing of Apollo Funds shopping Edgecast since last summer, originally asking for a 3-4x sales multiple, which just wasn’t realistic. Verizon originally bought Edgecast for $400M in January of 2014 and at the time, Edgecast had $100M in revenue. It took eight years for Edgecast’s CDN revenue to double, if you strip out the revenue from Uplynk, which Verizon acquired in November of 2013. While other CDN vendors talked to Apollo Funds about Edgecast and looked at the business, there was too big of an overlap in their customer base.

Customers like having a multi-CDN strategy and where a lot of overlapping customer accounts exist, much of the revenue acquired in an acquisition would go away as customers would re-shift their traffic to another CDN. But in Limelight’s case, there is very little overlap with Edgecast’s customers and when you combine the two companies, Limelight’s top 20 customers will go from making up 74% of their revenue, down to 59% of revenue, with no one customer being larger than 12%. Previously, Amazon Prime Video made up 29% of Limelight’s total revenue in 2021.

By combining the two companies, Limelight also gets to expand their product strategy to focus more of their efforts on cloud security services, mostly with DDoS and WAF. All CDNs have followed the blueprint Akamai set forth many, many years ago, when they started diversifying revenue from just CDN services and moved into high-margin product offerings around performance and cloud security. Being less dependent on revenue from CDN services around video streaming, software downloads and small object delivery is crucial to CDNs surviving in the market. On a combined basis, Limelight says their security and applications business will represent approximately $100 million of revenue in 2022 with greater than 70% gross margins.

When the integration between both companies is done, Limelight says they will have a global network capacity of more than 200 Tbps with more than 300 PoPs and expects annual run-rate cost synergies of $50 million including approximately $30-35 million from reduced colocation and internet peering expenses. Once the deal goes through, I’ll have some more blog posts on what Limelight’s product strategy looks like going forward.

If you are a member of Wall Street looking for my thoughts on the deal, please reach out to me or contact one of the expert networks (I no longer work with GLG) to setup a call.

Disclaimer: I have never bought, sold or traded a single share of stock in any CDN and they are also excluded from my managed portfolios.

Podcast Episode 10: Sling TV Loses Subs; DAZN Raises $4.3B; Streaming Vendors Project Slowing Year-Over-Year Revenue Growth

Podcast Episode 10 is live! This week we breakdown the 70,000 subscriber losses from Sling TV in Q4, the injection of $4.3B into DAZN and the upcoming soft launch of Bally Sports RSN streaming service. We also cover the key numbers you need to know from FuboTV, who ended 2021 with 1.13M subs and Discovery, who wrapped up 2021 with 22M D2C subs. We also discuss what’s behind so many streaming vendors slashing revenue growth projections for this year when compared to 2021.

Companies, and services mentioned: DAZN, FuboTV, Sinclair, Bally Sports, BT Sports, DISH, Sling TV, Discovery, HBO Max, Sabio, Vidillion, Haivision, AVIWEST, Kaltura, Brightcove, Fastly, Vimeo, Agora, Limelight Networks, Akamai, Qumu, Hopin.