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

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.