In 2015, live-to-VOD is an emerging, converging set of solutions and technologies designed to support all video publishing initiatives, more specifically the broadcast industry’s transition to an IP delivery model, built on the foundation of abundant compute capacities and open software architectures.
IP-based video consumption (across multiple screens, access points and devices) is increasing all over the world, including inside China.
IP video platforms, services and solutions (from ingest to monetization, transcoding, customized modules to integrated workflow) are poised to book $3 billion in 2015 spending, with large, integrated vendors (i.e. Brightcove, Kaltura, Ooyala and Piksel, among others) capturing 60.7% of the work.
These software and services segments (i.e. the enterprise, media players, discovery/recommendation/optimization engines, analytics, ad stitching/serving, processing/transcoding and end-to-end workflow) combined exhibit a 2007 – 2017 CAGR of 26.5%, according to a multi-disciplinary analysis by AccuStream Research.
This trade resource, IP Video Tech Live-to-VOD: CDNs, Cloud Software Platforms and Services, contains sector-specific, actionable knowledge (from company positioning to core tech modules, R & D, pricing, M & A valuations, global sell-in opportunities and business/billing models), as well as revenue performance and product strengths(by company, service and segment) through 2017.
CDNs, for their part, are betting that the next wave of video consumption growth will take place through connected televisions and set top boxes, collaborating with accounts about how best todeploytechnologies that address the video industry’s migration to IP.
Bandwidth provisioning, cloud storageand QOS guarantees (i.e. high quality, uninterrupted streams), real-time transcode, DRM, DDoS, network DVR, custom support modules and integration services offered at commercialized prices,CDNs (excluding AWS) are set to book $5.8 billion in topline revenue, an increase of 24% in 2015. Including AWS, the figure is $11.2 billion.
As account work requirements and pass-through volumes have increased, so has CDN MRR. Bandwidth fees are projected to remain a major component to MRR,however, account renewal discussions do not typically focus on pricing. With volume pricing rates already low, there is very little elasticity of demand now associated with incremental price declines, according to the research.
CDN and IP software vendors are delivering against the value proposition that integrated systems centralizing viewing experiences across all devices and screens results in performance and cost efficiencies.
And, vendors are positioning for linear and non-linear sell-in opportunities as the video industry integrates operations, and those conversations are taking place today.
SECTION ONE 1
CDN OPERATIONS, PROVISIONING ROADMAP AND SELL-IN ANALYTICS 1
CDN Terminology / Definitions: 1
CDNs 2015 – 2017: IP VIDEO 360: AUDIENCE MIGRATION TESTS NETWORK AVAILABILITY, SECURITY, QUALITY AND SCALE 8
AKAMAI GROSS MARGIN ANALYSIS: COGS 2007 – 2014 9
AKAMAI COGS ANALYSIS: 2007 – 2014 10
LIMELIGHT NETWORKS: COGS TREND 2006 – 2014 12
LIMELIGHT NETWORKS: COGS ANALYSIS 2008 – 2014 13
Selling In: what the market is buying, and why: 2015 15
MEDIA AND ENTERTAINMENT PERCENT CDN REVENUE: 2006 – 2014 16
CDN business operations, market dynamics, technology and account acquisition trends 2015 – 2017 18
Account Acquisition, new entrants and competitive forces 18
Retail and transit bandwidth pricing indicators: 2015 – 2017 18
Video formats and adoption trends 19
International markets, competition and account wins 19
The macro market: CDN MRR as calculated as topline revenue divided by total accounts declined by .2% in 2014 20
CDN ANNUAL ACCOUNTS: 2005 – 2014/2015 20
CDN MONTHLY RECURRING REVENUE ANALYSIS: 2005 – 2014 21
MRR analyzed by individual CDN: Average MRR increased 12.3% in 2014 to $8,153 22
CDN MONTHLY RECURRING REVENUE ANALYSIS: 2005 – 2014 23
Akamai continues to lead the market in revenue share 24
CDN REVENUE AND MARKET SHARE: 2010 – 2014 26
CDN SHARE OF MARKET: 2010 – 2014 27
CAP Ex investment rose by 19.6% in 2014: Compute platforms continue to add heft 27
CDN CAPEX INVESTMENT: 2007 – 2014 28
CDNs CAPEX investment balanced against account additions 2006 – 2017 30
CAP EX ANALYSIS: SERVER DEPLOYMENTS AND ACCOUNT GROWTH: 2006 – 2014 30
The CDN sector grew by 36.9% in 2014, including AWS and international vendors with a U.S. presence 32
CDN MARKET REVENUE ANALYSIS: 2003 – 2017 34
Media and Entertainment (audio/video—excluding games) contract value delivers 36.6% revenue share in 2014 37
MEDIA AND ENTERTAINMENT PERCENT CDN REVENUE: 2006 – 2014 37
Commercial market value in media and entertainment (IP Video and Audio) estimated at $3.9 billion in 2014 39
CDN BANDWIDTH SERVICES CATEGORY SHARE: 2014 40
CDN BANDWIDTH SERVICES CATEGORY SHARE: 2014 41
COMMERCIAL BANDWIDTH MARKET VALUE: MEDIA AND ENTERTAINMENT 2006 – 2014 43
Domestic and international CDNs with U.S. operations are forecast to reach $5.7 billion in 2015 revenue 45
GLOBAL CDN MARKET VALUE (Delivered by Domestic vs. International CDNs) 46
GLOBAL CDN MARKET VALUE (Delivered by Domestic and International CDNs) 2006 – 2017 48
CDN market expansion 2015 – 2017: the strongest account growth is taking place at lower MRR bands of the market 49
CDN REVENUE AND ACCOUNT GROWTH RATES: 2006 – 2014 49
Retail bandwidth pricing has stabilized in the period 2013 – 2015 50
GIGABYTES TRANSFERRED AND Mbps RETAIL CONTRACT PRICING: 2006 – 2015 51
Mbps (rate/95/5) RETAIL CONTRACT PRICING: 2006 – 2015 52
Retail and transit pricing declines do not necessarily move in tandem 53
ANNUAL PRICING COMPARISON: RETAIL VERSUS TRANSIT 2006 – 2015 54
ANNUAL PRICING PERCENT CHANGE COMPARISON RETAIL VS. TRANSIT 2006 – 2013/2014 56
CDN PROVISIONING: REVENUE, ACCOUNT PERFORMANCE METRICS, INFRASTRUCTURE ANALYSIS 2003 – 2017 (Part 1) 58
EXECUTIVE FORUM: Q & A BRIEFINGS WITH INDUSTRY LEADERS 64
ALCATEL-LUCENT 64
AKAMAI 67
CHINACACHE 71
CLOUDFLARE 75
KWICR 79
LEVEL 3 82
LIMELIGHT NETWORKS 86
MAXCDN 92
MIRROR IMAGE 96
SECTION TWO 100
IP VIDEO TECH 360 SOFTWARE PLATFORMS, MODULES, TRANSCODING, PLAYERS AND WORKFLOW INTEGRATION 2015 – 2017 100
TERMS AND DEFINITIONS 100
IP VIDEO TECH 360 SOFTWARE SECTOR OVERVIEW: PLATFORMS, MODULES AND WORKFLOW: THE MARKET DEMANDS CUSTOMIZED SOLUTIONS AT COMMERCIALIZED PRICES 106
The Big Picture: Selling IP Video Tech 360 solutions across account verticals, transforming the video business across all channels and platforms 106
IP Video Tech 360: The viewing experience and status of video formats and media players 108
Must Have IP Video Tech: Transcoding and media processing demand seen across all content/publishing/distribution verticals 109
IP Video Tech 360: Legacy business models ported to all devices, at all times 109
IP Video Tech Recommendation engines: Measuring ROI 110
Financial Fundamentals: Products, services and solution suite expansion and sell-in strategy evolution provide the foundation for double-digit growth 110
IP VIDEO 360 TECH PLATFORMS, MODULES, WORKFLOW, PROCESSING: TOPLINE REVENUE 2007 – 2017 111
Workflow vendors capture the majority of IP Video Tech Spend 2007 – 2017 114
IP VIDEO 360 TECH PLATFORMS, TRANSCODING, DISCOVERY, PLAYERS AND SERVICES: MULTI-SECTOR REVENUE HISTORY AND PROJECTIONS: 2007 – 2017 115
IP VIDEO 360 TECH PLATFORMS, TRANSCODING, DISCOVERY, PLAYERS AND SERVICES: MARKET SHARE 2007 – 2017 116
IP Video Tech markets continue to consolidate, reorganize, expand geographically, ramp up R & D, hire additional staff, plus attract venture capital and generate M & A 118
IP VIDEO 360 PLATFORMS, TECH SERVICES, PROCESSING, PLAYER AND INTEGRATED WORKFLOW SYSTEMS: M & A EXIT VALUATIONS 2006 – 2015 119
CAGR by IP Video Tech vendor vertical through 2017 120
CAGR ANALYSIS BY SEGMENT: 2007 – 2017 120
IP VIDEO TECH 360 VENDOR ALIGNMENT, CORE COMPETENCIES, PRODUCT DIFFERENTIATION, PRICING AND BUSINESS MODELS 2015 – 2017 122
IP VIDEO 360 TECH PLATFORM, PROCESSING, TRANSCODING, WORKFLOW: SERVICES, CORE TECHNOLOGIES AND BUSINESS MODELS 2015 – 2017 122
IP VIDEO TECH 360: MAPPING ECOSYSTEM REVENUE 2007 – 2017 125
IP Video Tech vendor segment solutions alignment and revenue analysis 2007 – 2017 128
IP video tech 360 platform, service and workflow vendors: Price, positioning, product and promotion 2015 – 2017 128
IP VIDEO TECH PLATFORMS, MODULES AND INTEGRATED WORKFLOW SOLUTIONS: SEGMENT REVENUE ANALYSIS 2007 – 2017 130
IP VIDEO 360 TECH PLATFORMS (OTT/IPTV/VOD): INTEGRATED WORKFLOW REVENUE TRAJECTORY 2007 – 2017 132
Enterprise-facing IP video tech solutions are steady performers: Product, price, position and promotion 2015 – 2017 134
ENTERPRISE/B-TO-B IP VIDEO TECH PLATFORM/WORKFLOW SERVICES SPECIALISTS: SEGMENT REVENUE 2007 – 2017 137
Encoding/Transcoding/Processing and CRM: Products, price, positioning and promotion 2015 – 2017 139
IP VIDEO 360 ENCODING, TRANSCODING, PROCESSING AND MEDIA OPTIMIZATION: SEGMENT REVENUE PERFORMANCE 2007 – 2017 142
IP VIDEO TECH 360: ENCODING, TRANSCODING, PROCESSING AND MEDIA OPTIMIZATION REVENUE 2007 – 2017 143
IP Video Tech: Discovery, social engagement, search, navigation, recommendation tools and technology 144
IP VIDEO TECH 360: DISCOVERY, ENGAGEMENT, RECOMMENDATION SERVICES REVENUE 2007 – 2017 147
IP VIDEO TECH 360 DISCOVERY, RECOMMENDATION TOOLS AND SERVICES: 2007 – 2017 148
IP Video Tech 360: Media Players and Solutions 149
IP VIDEO TECH 360 MEDIA PLAYERS AND SERVICES: 2007 – 2017 152
IP VIDEO TECH 360 MEDIA PLAYERS, SOFTWARE SOLUTIONS AND SERVICES: 2007 – 2017 153
EXECUTIVE FORUM: SECTOR Q & A’s 154
ALLDIGITAL BREVITY 154
ANVATO 158
BEAMR 162
BITMOVIN 164
BRIGHTCOVE 167
CONVIVA 171
DACAST 176
DIGITALSMITHS 179
HAIVISION 182
INVODO 185
MODE MEDIA 188
OOYALA 190
PIKSEL 194
TELESTREAM 198
thePLATFORM 201
VANTRIX 205
