CDNs cache content closer to the consumer at the edge of the network. This vastly increases video download speeds. We continue to believe that CDNs are the primary beneficiaries of, and the best thematic plays on, OTT and the growth of video traffic across wireless and fixed line networks.
A recent OTT survey by Streamingmedia.com (of 809 global respondents currently offering an OTT service, or exploring OTT opportunities) found:
1. quality of service and bandwidth limitations were the most significant technical challenges for businesses offering an OTT service today;
2. latency performance is of paramount importance for businesses? OTT solution set
Akamai has a global leadership position with an expansive customer base and unrivaled scale and IP. Akamai prefers to compete at the top-end of the ~$4bln global CDN market where its delivery and performance algorithms are truly differentiated from competitors; this puts them in an ideal position to secure early-stage OTT contracts OTT contracts with the largest global content providers.
Limelight is far smaller in scale and capitalization than Akamai, despite their consensus number two position in the outsourced CDN industry. LLNW has made substantial improvements to their network quality, underwriting discipline and operational efficiency over
the past two years.
