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Understanding the Impact of OTT Services on CDN’s Revenue
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The growth of OTT and all video services is having a positive impact on the CDNs, but the growth of these services is tempered by the fact that: the actual rate of growth is small, pricing for the services is low, traffic is split out amongst multiple CDNs, and the number of bits needed to view on mobile and tablets is 2/3 smaller than what’s needed to a TV screen. Investors in Wall Street should rely on actual data, market numbers that show what people are consuming, how often, at what bitrate, and what that value is, in revenue, to the CDNs.
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