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Report: CDNs Enjoy Double-Digit Growth in 2010

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It's a good time to be in the online video business. Content delivery networks (CDNs) are showing double-digit growth in 2010, a report from AccuStream Research shows, an improvement from the single-digit growth of 2009.

The report, titled CDN 2011, shows that CDNs are writing new contracts at a 26.7 annualized pace, and should produce $1.5 billion in revenue by the end of the year.

The total revenue for all CDNs is currently $2.7 billion, and the United States makes up 55.6 percent of that market. The report finds that major providers, such as Akamai and Limelight, raise up to 30 percent of their revenue from international contracts.

The reports finds that wholesale bandwidth costs are declining, while retail prices are finally stabilizing. Not surprisingly, more videos are being streamed to more devices.

Looking ahead, AccuStream forecasts improved gross margins and double-digit top line increases for the CDN industry in 2012.

Other CDNs analyzed for the report include Abecast, BitGravity, CDNetworks, CacheFly, Edgecast, Internap, Level 3, Mirror Image, Cotendo, and Highwinds, among others.

As of this writing, the report isn't yet listed for sale on the AccuStream site. When it is, the full report will likely sell for $2,495.

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