Content Delivery Networks (CDNs) and data centers will dramatically change the business model and the user experience for video delivery services, reports In-Stat. CDN-provisioned video-on-demand (VOD) will allow content owners more control over their creations and provide viewers with more choices in programming and delivery methods.

“As Content Providers build or out-source their own data centers, they will be in charge of every aspect of their content,” says Gerry Kaufhold, In-Stat analyst. “We will see flexible, complex, and creative ways to derive every last penny out of every piece of content.”

Recent research by In-Stat found that over the next five years, the worldwide value of CDNs will nearly double, to more than $2 billion, and that cable TV operators need to migrate their existing siloed VOD infrastructure to more efficient data center and CDN models.

In addition, the research found that Internet Protocol (IP) networks that connect from data centers and CDNs to last mile networks provide a lean delivery system that can profitably support advanced advertising and more personalized video delivery. The report said adaptive bit rate video approaches will permit IP-networks to deliver a high-quality user experience at lower bit rates, and will cross over to TV-based services.

The research, “CDNs and Data Centers to Usurp Video-on-Demand” covers the worldwide market through 2013 and includes brief profiles of vendors including: Akamai, Limelight Networks, DG Fastchannel, CD Networks, Level 3, Cotendo, Internap, Highwinds CDN, Signiant, Cisco, Juniper Networks, Alcatel/Lucent, Ericsson, Adobe Systems, Microsoft, Apple, Real Networks, thePlatform, Harris Broadcast Communications, Thomson Technicolor, Ascent Media, Intel, Inlet, Envivio, Concurrent, Edgeware and Verivue. (For more on CDNs, click here).

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