The Implications of Sharply Declining Prices for the CDN Industry

With customers having so many different CDNs to choose from, both regionally and globally, and the ease of use of switching between multi-CDN vendors, media delivery simply isn’t a sticky product. Media delivery pricing continue to fall and since CDNs are not able to make up for the lower price based on additional traffic volume on a consistent basis, the business of media delivery will continue to be challenging. It will grow, but slowly from a revenue standpoint. And the CDNs that will do the best are the ones that will be strategic about which traffic they bring on their network and which customers they say no to.