CDN Forecast to 2024
CDNs will benefit hugely from more and more traffic travelling as high density and “live” video, says a report out this week from Rethink Technology Research’s Rethink TV service.
The new report is entitled, “SRT triggers “live” video surge on global CDNs – CDN Forecast to 2024” and it is part of the Rethink TV series of forecasts, sold as a subscription service.
Video is taking an increasing proportion of CDN traffic and CDNs in turn are expanding their share of all IP traffic. But the main emerging factors will be a surge in live streaming video traffic, and hitched to that a boom in low latency protocols, particularly the SRT (Secure Reliable Transport) and possibly Reliable Internet Stream Transport (RIST) protocols because of their ability to shave latencies much closer to the ultimate limits imposed by the laws of physics.
If you thought the rise of SVoD was fast and extreme, the rise of “live” content will happen even faster and create more changes in both the entertainment landscape and its underlying technology backdrop. SRT has emerged as the protocol of choice for delivering live video as close to “synchronous” as possible.
Live streaming has only just emerged from the shadow of SVoD which has dominated streaming traffic ever since Netflix began ramping a decade ago. Even though SVoD has plenty of room for growth yet, live streaming traffic will rise much more steeply and overtake non live video traffic between 2023 and 2024. Live video accounted for 11 Exabytes compared with total CDN video traffic of 58 EB in 2018, by 2024 it will be 238 EB against 453 EB.
Some SRT traffic will go through CDNs and some over unmanaged Internet traffic as part of Online Video Platforms (OVP). Comparing revenues associated with SRT traffic against total video CDN traffic, we see this rising from just 2% in 2018 to 43.5% by 2024. While 2018 SRT traffic generated $236 million compared with $4.46 billion for CDNs in total, by 2024 it will be $9.66 billion out of $22.2 billion.
There are also strong regional differences in rates of growth in CDN video traffic and particularly live streaming, with Asia Pacific set for an especially rapid increase in traffic, which will account for 51% of the world’s total in 2024 compared with 29% in 2018. There are also considerable regional differences in the proportion of total CDN video traffic accounted for by private CDNs owned by larger streaming providers such as Amazon and Netflix. These will account for a rising proportion of total CDN traffic in all regions but with the trend strongest in North America where they will take 75% by 2024.
Who should read this report and what should they get out of it?
This Report, “SRT triggers “live” video surge – bigger than SVoD” CDN Forecast to 2024, is essential for planning any online video business. Right now Netflix and rivals have taken SVoD as far online as it can go, but this is not the true for “live” events, and these are breaking records every week. The Woman’s World Soccer Cup will no doubt break more online records this week.
SRT seems to us to be one of the critical technologies required to shift more and more sport to live, going direct to the consumer, and the winners of this revolution will be CDN players as much as cloud players and anyone in the OTT pipeline. Traditional channel TV cannot be examined without understanding what’s about to happen to it, neither can OTT entertainment, and “live” sport is on the verge of a major transformation.
This is the first report that has tried to put numbers of what will happen as Live streams take over the world, and what direct to consumer may do to existing sports-driven TV channels.
You will get a 35 page report with 17 graphs showing all types of online video global traffic, split regionally and by technology.
C-Suite decision makers and their strategy teams will need this high level report to ensure decision-making is smooth and considers everything and does not simply assume that during the next five years things will merely stay the same.
Companies mentioned in this report:
Akamai, Amazon, Amazon Web Services, AT&T, Baidu, Cisco, Comcast, DaCast, Disney, Facebook, FubboTV, Google, Grupo Clarin, Haivision, IBM Cloud Video, Microsoft, Millicast, NBC Universal, Netflix, Peer5, Sky, Skype, Snapchat, Strive, TenCent, Twitter, Vimeo Livestream, Warner Media, WeChat, WhatsApp, Wowza, Youku Tudou, YouTube, YuppTV
For more information contact:
Natalia Szczepanek (Client Relations and Marketing Manager): [email protected]