CDN Market Getting Crowded: Now Tracking 28 Providers In The Industry

No matter what some analysts may want you to believe, the CDN segment
of the market shows no signs of slowing down and there exists a continued demand for
delivery of all shapes and sizes. A year ago, I was tracking about 15 delivery providers in the market. As of today, there are now at least 28 providers for online video delivery be it via streaming, progressive download, P2P or hybrid solutions. At least 6 of the providers on the list below are putting out major announcements in the next 2 weeks and at least half of the ones below all have major announcements in the pipeline. The fourth quarter of this year is going to be filled with announcements from CDNs with large customer wins, new buildouts, new types of delivery services, enhanced reporting products and hybrid delivery solutions.

That being said, over time, all of these providers won’t be able to stand on their own and 18-24 months from now, the CDN industry will once again see a round of consolidation in the market. But until that happens, as more customers flood the market, bitrates keep increasing, content becomes long-form, and more devices are being used for video playback, customer will have a lot of options in the market – especially with the VC money still flowing into the CDN space. As for providers listed below, I am not comparing them as being equal to one another as there are many differences between all of them. Every provider has different strengths and weakness all based on what a customer needs. This is just a list of those providers and is not a comparison of companies based on size, technology, geographic reach etc.

In alphabetical order the delivery networks are:

Those not included on the list are companies who make products for the delivery networks, providers who are going after small businesses, or those who re-sell one of the providers above. In addition to the above, there are two or three companies not listed who are contemplating entering the space in 2008. So next year, we may well have over 30 providers.