Content Delivery Networks (CDNs) raised contract revenue 18.3% in 2012, to $2.28 billion, as value-added services (site/app acceleration, cloud solutions, analytics, specialized HTTP video platforms, content transformation, workflow, management, security and rights protection) in addition to core bandwidth provisioning supporting very large video accounts fueled market growth.
Sector-wide monthly recurring revenue (MRR) rose 8% to $5,265, calculated as an average of each CDN’s revenue-per-account performance comparable, as detailed in this market and business analytics report.
Report analysis establishes that media and entertainment represents the largest content segment under CDN contract, forming 48.6% of the penetrated market. Professional video, digital video advertising and Internet music radio are highly penetrated verticals.
Professional video bandwidth fees frame a 35.8% share of the available market (counting self-hosting sites), followed by UGC video at 19.6%, mobile video (views and advertising) at 14.8% and music radio/song plays at 11.7%.