CDN services for pay-TV to make $175m in 2013

Pay-TV operators have been moving an increasing amount of their content online through TV Everywhere or multiscreen services, as well as seeing an increasing amount of Internet streaming via OTT services like Netflix and Hulu, according to MRG. As a result, cable, IPTV and satellite operators are seeing an increased need to manage what’s happening in their networks, and how to deliver premium video more cost effectively and with higher quality.  Enter content delivery networks, or CDNs.

CDNs are a system of computers and caches that place copies of content (web pages or audio/video) in various places around a network in order to more effectively and efficiently deliver that content. CDNs can help service providers and content owners by reducing delivery costs, as well as ensuring higher quality delivery of content.

MRG expects the market for CDN services for pay-TV operators to reach nearly $175 million in 2013 increasing by a CAGR of 57.5 per cent through 2017.

Additional findings include:
– Multiscreen and OTT video are the biggest market drivers for implementing a CDN among pay-TV operators.
– Managed CDN services from vendors like Akamai, Level 3 and Limelight account for about 57 per cent of total forecasted revenues by 2017.
– Asia will be the largest user of CDN services among pay-TV operators by 2017, with 27.4 per cent, followed by Western Europe (23.9 per cent) and North America (21.8 per cent).
– Asia will also show the largest growth as well with a 76.6 per cent CAGR during the forecast period.
– MRG expects continued growth of open source CDNs from operators like Comcast as well as growing use of caches from Netflix’s Open Connect CDN which is available free to broadband providers and operators.

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