Digital Video Value Chain 2013

Publisher Name :
Date: 19-Mar-2013
No. of pages: 0

Digital Video Value Chain Climbs 38% To $6.3 Bil. In '12; Global Ecosystem Revenues Reach $9.4 Bil.

The digital video value chain (comprising CDN, video ad networks, serving platforms, auctions, exchanges, RTBs, integrated video platforms, media transformation, processing, optimization and analytics, mobile ad networks, platforms and media clearing environments made a combined $6.3 billion in 2012 revenue.

Revenues (net of requisite publisher payouts) improved 38.1% for U.S.-based vendors, including their international operations.

Globally, the digital video value chain grew 36.6% to $9.4 billion, bookending a nine-year CAGR of 38.6%, as encompassed in this multi-disciplinary ecosystem, operations and business analytics report by AccuStream Research.

This 600+ page edition, Digital Video Value Chain 2013, presents exclusive, extensive primary quantitative research about each value chain entrant and related sectors, comparative growth rates and business model implementations.

Company revenue and sector valuations are enhanced, complemented and contextualized through dozens of comprehensive and insightful operations-focused Q & A's conducted with management, sales, technology and marketing executives across the entire value chain.

Operations analysis provides number of accounts, MRR, fill rates, billings and billing models (i.e. CPM, CPC, CPCV), impressions delivered or cleared (by format and region of the world), business model constructs, publisher payout percentages, core competencies, revenue (historical, current and forecast to 2015), global reach, market share, R & D initiatives, competitive assessments and strategic partnering initiatives.

Video value chain principals include Akamai, Limelight Networks, Internap, Level 3, Edgecast, CDNetworks, ChinaCache, Brightcove, thePlatform, Kaltura, DigitalSmiths, Kit Digital, Adobe Auditude, RAMP, Sharethrough, adRise, Tremor Video, SpotXchange, Adap.tv, DG/MediaMind, SET Media, Freewheel, YuMe, AudienceScience, TubeMogul, Buzz City, JumpTap, Madhouse, Mobclix, InMobi, Origin Digital, Encoding.com, Sorensen Media and many more.

On a global basis, mobile ad networks, platforms and clearing environments are forecast to capture 29.3% of digital video ecosystem net revenue by 2015, online video ad networks and CDNs at 27%, integrated platforms, optimization and processing 16%.

AccuStream Research produces investment grade sector reports covering digital video viewing, audio listening and monetization, subscription media storefronts, video processing, workflow, in-stream and digital video advertising, video advertising networks, mobile advertising networks, CDN, integrated video platforms, alongside client-specific analyses.

Digital Video Value Chain 2013

Table Of Contents

Executive Summary 1
Digital Video Value Chain Markets Combine for 41% Growth in 2012 1
Double-digit growth seen across all value chain sectors analyzed in 2012 1
Digital Video Value Chain Revenue Share 2006 - 2012: CDN, Ad Networks and Platforms 3
Global Digital Video Value Chain Rolls to a 36.6% 2012 Increase, Surpassing $9.4 Billion in Revenue 5
Global Digital Video Value Chain to Continue Double-Digit Rates of Expansion through 2015 7
The Global Digital Video Value Chain Forecast to Reach $22 Billion in Revenue by Year-End 2015 7
Mobile ad networks, ad trafficking platforms, auctions and exchanges forecast to outpace digital video value chain market sectors 7

Section One 8
Digital Video Value Chain Markets Combine for 41% Growth in 2012 8
Double-Digit Growth Seen Across All Value Chain Sectors Analyzed in 2012 8
Digital Video Value Chain 2006 - 2012: CDNs, Ad Networks, Auctions, Exchanges and Integrated Platforms 9
CDN is a Relatively Mature Business Sector, and Continues to Lead in Value Chain Revenue,though Share is Declining 11
Digital Video Value Chain 2006 - 2012: CDNs, Ad Networks, Auctions, Exchanges and Integrated Platforms 16
Digital Video Value Chain Revenue Share 2006 - 2012: CDN, Ad Networks and Platforms 17
U.S. Contribution to Digital Video Value Chain Forecast to Grow in Excess of 30% through 2015 19
Digital Video Value Chain: 2006 - 2015 20
Video Ad Networks, Ad Trafficking Platforms and Media Clearing Environments are Forecast to Lead the Market 2013 - 2015 21
Global Digital Video Value Chain Rolls to a 36.6% 2012 Increase, Surpassing $9.4 Billion in Revenue 24
Global Video Value Chain 2006 - 2012: CDNs, Ad Networks, Auctions, Exchanges and Integrated Platforms 25
Global Digital Video Value Chain to Continue Double-Digit Rates of Expansion through 2015 28
The Global Digital Video Value Chain Forecast to Reach $22 Billion in Revenue by Year-End 2015 28
Mobile Ad Networks, Ad Trafficking Platforms, Auctions and Exchanges Forecast to Outpace Digital Video Value Chain Market Sectors 28
Global Digital Video Value Chain: 2006 - 2015 30
Mobile Ad Networks, Platforms, Auctions, Exchanges and Clearing Environments on Course to Capture 29.3% of the Digital Video Value Chain by 2015 34
Global Digital Video Value Chain: 2006 - 2015 37
Digital Video Value Chain Sector Summaries 38
CDN Market Continues to Grow at a Steady Rate 38
CDN Market Value 2006 - 2015 38
Media and Entertainment Percent CDN Revenue: 2006 - 2012 41
Video Ad Networks and Ad Trafficking Platforms Grew at 42.3% in 2012 43
Video Advertising Network, Trafficking and Clearing Platform Revenue 2006 - 2012 43
Integrated Video Platforms, Media Processing and Optimization Solutions Produce 33.8% Growth in 2012 45
Integrated Video Platforms/Solutions Revenue: 2006 - 2012 45
Mobile Ad Networks, Ad Trafficking and Clearing Platforms: Rapid Growth Ahead 47
Global Mobile Ad Networks, Trafficking Platforms and Clearing Environments: 2009-2014 47

Section Two CDN Sector Analysis 2013 50
CDN Terminology Definitions: 50
CDN Sector Dynamics Introduction and 2012-2015 Overview 52
CDN sector business, technology and account acquisition trends 52
Account Acquisition, new entrants and competitive forces 53
Retail and transit bandwidth pricing indicators 54
Video formats and adoption trends 54
International markets, competition and account winds 54
R & D Initiatives 55
CAP EX allocation 55
CDN accounts under contract swell by 61.2% in 2012 56
CDN Annual Accounts: 2005 - 2012 57
CDN Total Year End Accounts: 2012 57
Akamai continues to lead the market in revenue 58
CDN Revenue and Market Share: 2010 - 2012 58
CAP Ex investment rose by 25.1% in 2012 60
CDN Cap Ex Investment: 2007 - 2012 60
CDNs continue to deliver Cap Ex investment efficiency balanced against account additions 62
Cap Ex Analysis: Server Deployments and Account Growth 62
The CDN sector grew by 18.3% in 2012; Double-digit growth forecast through 2015 64
CDN Market Revenue Analysis: 2003 - 2015 64
Average MRR increased 8% in 2012 to $5,265 64
CDN Monthly Recurring Revenue Analysis: 2005 - 2012 65
Media and Entertainment contract value increased by 20% in 2012 71
Total Media and Entertainment CDN Contract Value: 2006 - 2012 71
Entertainment Media Revenue Share of CDN Market: 2006 - 2012 71
Domestic CDNs are forecast to reach $2.71 billion in 2013 revenue 71
International CDNs are estimated at $1.2 billion in 2012 contract billings 73
Global CDN Market Value (Domestic vs. International CDNs) 75
Account additions at the lower end of the MRR spectrum are being aggressively targeted by smaller CDNs 77
CDN Revenue and Account Growth Rates: 2006 - 2012 77
The global CDN market is estimated at $3.7+ billion in 2012 79
The Commercial Market Value of Audio/Video delivery surpassed $1.33 billion in 2012 82
Commercial Bandwidth Market Value: Audio/Video 2006 - 2012 82
Professional video delivery represents the largest share of bandwidth consumption 84
Streaming/Http Audio/Video Content Category Share: Commercial Market Value 2006 - 2012 84
CDN Bandwidth Services Category Share: 2011 86
CDN Bandwidth Services Category Share: 2012 87
Retail bandwidth pricing stabilized in 2012 88
Retail Contract Pricing: 2006 - 2012 88
Retail Contract Pricing: 2006 - 2012 91
Retail and transit pricing declines do not necessarily move in tandem 93
Annual Pricing Comparison: Retail Versus Transit 2006 - 2012 93
CDN Q & A's 96
Akamai 96
Bitgravity & Tata Communications CDN 103
Cdnetworks 106
Chinacache 111
Cloudflare 116
Edgecast 123
Highwinds 128
Internap 135
Level 3 140
Limelight Networks 145
Mainstream Networks 150
Mirror Image 154
Netdna 158
Yottaa 161

Section Three Video AD Networks, AD Trafficking Platforms, Auctions, Exchanges And RTBS 163
Digital Video Advertising Network and Platform Terminology Definitions 163
Video Ad Networks, Ad Trafficking Platforms, Auctions, Exchanges and RTBs Forecast to Earn $1.1 Billion in 2012 Revenue 167
Video Advertising Platforms: Revenue Analysis by Media Clearing/Serving Category 2007 - 2014 171
Post Publisher Payout Topline Revenue Analysis 174
Video Advertising Networks, Ad Serving Platforms, Auctions, Exchanges, RTBs, Mediation Layers, SSPs and DSPs: Revenue Analysis 2007 - 2012 174
Video Advertising Networks, Ad Serving Platforms, Auctions, Exchanges, RTBs, Mediation Layers, SSPs and DSPs 175
Total Platform Revenue: CPM Share Revenue with Platform Licensing, Data, Audience Targeting, Transactions and Usage Fees 2007 - 2014 178
Video Advertising Networks, Ad Serving Platforms, Auctions, Exchanges, RTBs, Mediation Layers, SSPs and DSPs: Platform Revenue Analysis 2007 - 2014 184
Video Ad Trafficking: Scale, Reach, Technology and Integration Specialists 185
Video Ad Serving Platforms: Revenue Analysis 2007 - 2014 185
Video Advertising Networks: Managing the Media Buy and Delivering the Audience 189
Video Advertising Networks: Platform Revenue Analysis 2007 - 2014 192
Auctions, Exchanges and RTBs: Experiencing High Growth 193
Video Auctions, Exchanges and RTBs: Platform Revenue Analysis 2007 - 2014 196
Social Video Ad Campaign Platforms and Networks 197
Social Video Advertising Networks: Platform Revenue Analysis 2007 - 2014 199
Over-The-Top Ad Platforms 200
Over-The-Top Video Advertising Solutions: Platform Revenue Analysis 2007 - 2014 201
Unscrambling the Market Puzzle: Sizing Duplicate Video Ad Network, Serving Platform Impressions and Corresponding Media Spend 202
Inventory Duplication Analysis: 2008 - 2012 202
Video Advertising Networks, Ad Serving Platforms, Auctions, Exchanges, RTBs, Mediation Layers, SSPs and DSPs 204
Legend: Video Ad Networks, Platforms, Auctions, Exchanges and RTBs 206
Video Advertising Networks, Ad Serving Platforms, Auctions, Exchanges, RTBs, Mediation Layers, SSPs and DSPs 2008 - 2012 208
Video Ad Networks and Platforms: Non-Duplicated Media Spend (All Formats) Cleared or Served Estimated at $8.2 Billion in 2012 209
Video Advertising Networks, Ad Serving Platforms, SSPs and DSPs 212
Video Media Spend Cleared by Ad Networks or Trafficked Over Distribution Platforms to Reach $6.2 Billion in 2012 213
Video Advertising Networks, Ad Serving Platforms, SSPs and DSPs 216
Q & A's 217
Adap.TV 217
Adbrite 222
Adobe Auditude 228
Adrise 233
Audiencescience 237
Blackarrow 245
Blinkx 250
Doubleverify 256
Freewheel 260
Innovate Media/Oculu 267
Jun Group 271
Limelight Video Platform 278
Mediamind (A Division Of DG) 283
Mixpo 290
Pointroll 296
Rocket Fuel 301
Rovion (A Unit Of Local Corporation) 305
Set Media 309
Sharethrough 315
Spotxchange 319
Tremor Video 327
Tubemogul 333
Videology 340
Visible Measures 347
Yume Inc 354

Section Four: Integrated Video Platforms, Media Processing And Optimization Solutions 361
Integrated video platforms, media processing and optimization solutions terms and definitions 361
Overview: Video Platforms, Encoding, Processing, Engagement and Recommendation 364
Business Fundamentals and Market Outlook 364
Video Platforms, Transformation, Processing and Discovery Solutions Markets Forecast at $1.12 Billion in 2012 366
Video Platforms, Processing and Optimization: Revenue Analysis 2007 - 2014 367
Video Platforms, Processing and Discovery: Market Segments Analyzed 2012 372
Video Platforms, Media Processing and Workflow: Market Positions and Core Competencies 373
Integrated Video Platforms, IPTV/OTT Solutions Segments Lead in Total Sector Revenue 2007 - 2014 375
Integrated Video Platforms, Processing, Optimization And Engagement Solutions: Eight Year Revenue Analysis And Projections: 2007 - 2014 378
Business Models are Predominantly SAAs/MRR, with Bandwidth, Storage and Usage Fees 380
Integrated Video Platforms 380
IPTV and OTT Video Platform Solutions 381
Video Processing, Transformation, Encoding and Optimization 382
Enterprise Video Platforms: Billing Models and Pricing 383
Video Discovery, Engagement and Recommendation Software Solutions 384
Q & As 385
Anvato 385
Brightcove 389
Conviva 398
Digitalsmiths 403
Encoding.Com 409
Eyeio 415
Ignite Technologies 418
Kaltura 422
Kit Digital 426
Kontiki 430
Labone 436
Metrixstream / Metrixapps 440
Octoshape 443
Origin Digital 450
Qumu 458
Ramp 462
Snappytv 468
Sorenson Media 473
Sundaysky 479
Taboola 483
Telestream 486
Theplatform 490
Vbrick 497
Vidizmo 501
Vimation 505
Vzaar 509

Section Five: Mobile AD Networks, AD Serving Platforms, Auctions, Exchanges And RTBS 516
Mobile ad networks, ad serving platforms terms and definitions 516
Global Mobile Advertising Markets in Motion: Total Inventory, Filled Impressions, Billed Impressions and Media Spend are Climbing 518
Filled and Billed Impression Analysis: 2010 - 2012 519
Global Mobile Inventory Clearing Overview: Market Drivers and Media Spend Dynamics 521
Ad Networks, Ad Serving Platforms, Auctions and Exchanges: Media Clearing Obliges Publishers Take an All-Inclusive Approach 521
Regional Media Clearing Contours and Contrasts: U.S. and Western Europe are Market Growth Leaders 522
Global Mobile Billed Advertising Impressions by Region: 2010 - 2012 523
Global Mobile Media Spend Forecast at $7.13 Billion in 2012 525
Mobile Ad Network Billed/Paid Inventory and Media Spend Analysis Summary: 2010 - 2012 526
The U.S. Leads All Markets in Billed Impressions 529
Global Mobile Billed Impressions by Region: 2010 - 2012 529
Mobile Ad Network, Ad Serving Platform, Exchange, Auction and RTB Media Spend by Region: 2010 - 2012 532
Mobile Advertising Network Billed Impressions Delivered by Geographic Region: 2010 533
Mobile Advertising Network Billed Impressions Delivered by Geographic Region: 2011 535
Mobile Advertising Network Billed Impressions Delivered by Geographic Region: 2012 537
ECPMs Vary by Region, Publisher, and Brand 539
ECPMs by Region: 2010 - 2012 540
ECPM Sample Pricing Conversion Grid 542
Mobile Ad Network Market Positions are Diverse, with Sophisticated Ad Ingest, Clearing, Serving, Tracking, Handset, OS and Audience Targeting Technologies 542
Mobile Ad Networks are Sophisticated Audience Targeting Vehicles 542
Mobile Advertising Networks: Market Position Analysis: 2012 544
Mobile Advertising Networks: Inventory and Platform Billing Models 2012 546
Mobile Advertising Networks, Platforms, Auctions and Exchanges: Revenue Share/Participation Analysis: 2011 - 2012 548
Mobile Advertising Networks, Platforms, Auctions Exchanges and RTB: Billing Models and Formats Supported 2012 551
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Reach 2009 - 2012 553
Mobile Ad Networks, Platforms, Ad Serving Solutions, Auctions, Exchanges and RTB Solutions are Forecast to Capture $1.6 Billion in 2012 Net Revenue 555
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Media Spend, Revenue Share and Net Revenue 2009 - 2014 556
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Media Spend, Revenue Share and Net Revenue 2009 - 2012 562
Mobile Ad Networks, Platforms, Ad Serving Solutions, Auctions, Exchanges and RTB Solutions are Forecast to Capture $1.6 Billion in 2012 Net Revenue 563
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Media Spend, Revenue Share and Net Revenue 2009 - 2014 564
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Media Spend, Revenue Share and Net Revenue 2009 - 2014 568
Mobile Advertising Networks, Platforms, Auctions, Exchanges and RTBs: Media Spend, Revenue Share and Net Revenue 2009 - 2012 570
Q & A's 571
Adfonic 571
Aditic (A Division Of Sofialys) 573
Admarvel (A Unit Of Opera Software) 574
Admoda/Adultmoda 576
Amobee 578
Buzz City 581
Casee 583
Inmobi 584
Jumptap 587
Madhouse 589
Madvertise 591
Mobgold 594
Mogreet 596
Mojiva 600
Nexage 601
Tremor Video 603
XAD, Inc 605

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