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Media & Entertainment:

Streaming Media Value Chain 2003 - 2007: CDN, Advertising, Subscription and download Analysis

Accustream imedia research
Market Study  September 2007

PDF Single User - GBP 997.50  

Table of Contents

The research report, covering a five year period, reveals CDN and bandwidth costs made up an average of 18.9% of total market value. Advertising (pre roll and embedded video, audio gateway and inserted audio ads) 25.4%, subscription media 20.1%, and download content 35.6% of the combined total.

The report's four detailed sections thoroughly analyze each value chain component, including CDN pricing and revenue by content category, advertising revenue by avail type, subscription revenue by service or offering and download revenue by brand, service and offering.

Top line report findings and analysis:

-The streaming media value chain (including CDN services supporting streaming content, progressive download video, download music and movies, advertising and subscription media) is estimated at $4.9 billion in 2007, up 38.5% over 2006
-The corresponding value chain figure was $3.5 billion in 2006, up 64.2% over 2005
-Over a five-year period, the streaming, CDN, advertising, subscription and download value chain has generated a total of $12.3 billion
-In 2007, the combined value chain is expected to grow at a 38.5% rate, and $4.9 billion represents 39.8% of the five-year total
-Over a five year period, CDN and bandwidth provisioning costs have made up 18.9% of total market value
-Advertising (pre roll, embedded, audio gateway, audio inserted etc.) have made up 25.4 of total market value
-Subscription media has made up 20.1% of total market value
-Download media has made up 35.6% of total market value

The research report, Streaming Media Value Chain 2003 - 2007: CDN, Advertising, Subscription and Download Segment Analysis, combines and then individually analyzes four core segments contributing to value chain, supported by detailed historical and current year data.

The research, covering a five-year period, reveals CDN and bandwidth costs made up an average of 18.9% of the value chain. Advertising (pre roll and embedded video, audio gateway and inserted audio ads) 25.4%, subscription media 20.1%, and download content 35.6% of the combined total.

Reflecting the overall downward trend in wholesale and retail bandwidth pricing since 2003, CDN and associated distribution costs attached to streaming and download media have declined in overall value chain contribution from a high of 32.9% in 2003 to a low of 17.2% in 2007.

Individual segment analytics indicates download media growth at 49% for 2007, streaming advertising 41.1%, CDN and bandwidth services (retail contracts, backhaul and self hosting costs) 32.6% and subscription at 16.2%.

"Since 2003, when the market reached $560 million in value, there has been a steady upward climb to $4.9 billion in combined worth, a testament to how quickly audience demand motivated investment in both distribution and content assets required to facilitate a better experience and thereby expand the market," commented Paul A. Palumbo, research director at AccuStream.

"With distribution costs at an all time low, streaming advertising at an all time high, broadband penetration at a new peak, and the expansion of content categories now including professional, semi professional and user content, the value chain is delivering on the promise of a circular content, brand and user relationship," he added.

The report's four detailed sections thoroughly analyze each value chain component, including CDN pricing and revenue by content category, advertising revenue by avail type, subscription revenue by service or offering and download revenue by brand, service and offering.

For full details, please email keithw@cmsinfo.com

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