Akamai’s Media Pricing Cuts Fail to Address the Company’s Underlying Issues

Akamai’s Media Pricing Cuts Fail to Address the Company’s Underlying Issues

Akamai Should Consider Exiting the Media Business and Focus onWeb Performance and Security Product Lines

RELEASE DATE
14-Nov-2016
REGION
North America
Deliverable Type
Market Research
Research Code: 9849-00-62-00-00
SKU: EM00248-NA-MR_19269
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Description

Akamai must formulate a viable strategy to succeed in an industry that is volatile with thin margins. The company has a commoditized service offering and deals with customers that compete against it. It is challenged both by cloud providers that have more scale and ways to make money, and by competitors that have distinct CapEx advantages. Akamai is sacrificing margins on its media business to add traffic to its network; unfortunately this is not sustainable in the long run.

Table of Contents

Akamai must formulate a viable strategy to succeed in an industry that is volatile with thin margins. The company has a commoditized service offering and deals with customers that compete against it. It is challenged both by cloud providers that have more scale and ways to make money, and by competitors that have distinct CapEx advantages. Akamai is sacrificing margins on its media business to add traffic to its network; unfortunately this is not sustainable in the long run.
More Information
Deliverable Type Market Research
No Index No
Podcast No
Author Dan Rayburn
Industries Entertainment and Media
WIP Number 9849-00-62-00-00
Is Prebook No