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CDN Pricing: Costs for Outsourced Video Delivery

Streaming Media West 2008 Session. CDN Pricing: Costs for Outsourced Video Delivery. Detailed pricing data can be seen at: www.cdnpricing.com www.cdnlist.com www.contentdeliveryblog.com. 9/24/08: Streaming Media West - Dan Rayburn - dan@streamingmedia.com.

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CDN Pricing: Costs for Outsourced Video Delivery

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  1. Streaming Media West 2008 Session CDN Pricing: Costs for Outsourced Video Delivery Detailed pricing data can be seen at: www.cdnpricing.comwww.cdnlist.comwww.contentdeliveryblog.com 9/24/08: Streaming Media West - Dan Rayburn - dan@streamingmedia.com

  2. Market Size For Video CDN Is North Of $400 Million In 2008 Should Double In Three Years 5/20/08: Streaming Media East - Dan Rayburn - dan@streamingmedia.com

  3. CDN Funding Now Tops $400 Million In Past 18 Months Adding up all the investments that CDNetworks, EdgeCast, Panther Express, Grid Networks, Highwinds, Velocix, Itiva, Move Networks, Pando Networks, Conviva, BitTorrent, ChinaCache, Rawflow, Oversi and BitGravity have gotten, it totals $314 million. In addition to these providers, Kontki, SimpleCDN, Vusion, Highwinds and EdgeStream have all raised undisclosed amounts as well which puts the total amount of money raised into the CDN space well over $340 million. And if we think of AT&T's CDN offering as a startup, which they basically are, with their $75 million investment into their network this year, that puts the total amount of money raised to over $400 million in the past 18 months. And more funding is on the way. Additional CDNs will announce more funding.

  4. Number One Question In The Market "How do you think we should proceed looking for a new CDN and how do we get any data that will help us determine who we choose? All the CDN sales reps are blaming the other one in terms of network size, service quality, etc. and we can’t see the difference between many CDNs. Do you have research in terms of how much bandwidth, capacity, scalability, performance, etc?”

  5. Before we look at pricing: What classifies a company as a CDN?- Where do I get my data?- Don’t compare vendors! Compare products- One vendor is not better than another- Why is this so complicated 14 years later?- Customers don’t buy on price alone- Know the product! (example: overages)

  6. Video Delivery Pricing For Q3 2008 Q2: 250TB: High $0.55 per GB, Low $0.40 per GBQ3: 250TB: High $0.35 per GB, Low $0.20 per GBQ2: 500TB: High $0.30 per GB, Low $0.10 per GBQ3: 500TB: High $0.30 per GB, Low $0.10 per GBQ2: 750TB: High $0.12 per GB, Low $0.07 per GBQ2: 750TB: High $0.12 per GB, Low $0.05 per GBQ2: 1000TB: High $0.09 per GB, Low $0.04 per GBQ2: 1000TB: High $0.10 per GB, Low $0.025 per GB • This is per GB delivered pricing, not per MB sustained • Pricing is for major CDNs who focus on global delivery • Cheaper prices can be found by going to regional service providers • This is the “average”. Customers have different needs and requirements which determines the final price.

  7. QUESTIONS? (917) 523-4562 CDN Pricing: Costs for Outsourced Video Delivery Detailed pricing data can be seen at: www.cdnpricing.comwww.cdnlist.comwww.contentdeliveryblog.com

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