AFI BLOG: Media and Technology

Video CDN Market Size Could Grow To $800 Million In 2008 - Seeking Alpha

As we near the end of 2007, I’ve seen a few reports estimating the CDN space to have been anywhere between $800 million and $1.4 billion for the year. The reports I have seen do not break out what specific “CDN” products they are talking to and how those numbers were calculated. So with that in mind, here is how I sized the market for 2007 and the data I used to come up with the number. This does not include revenue numbers for P2P only based vendors.

The number I am talking to 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. I also looked at all outsourced CDN services and not companies who sold products or services for internal delivery, such as Cisco’s CDN solution.

While not all of the companies listed below 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 together below so as not to expose data they have given me privately. In no particular order:

- Internap (INAP) (run rate of about $24 million for 2007, nearly all of which comes from the U.S.)

- Limelight Networks (LLNW) (estimated to do about $105 million for 2007 and I estimate about $95+ million of that to be from the U.S.)

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