CDN Funding Continues: CDNetworks Raises $96.5 Million

Hot on the heels of EdgeCast announcing it had raised $6 million dollars, content delivery provider CDNetworks announced late yesterday that it had raised $96.5 million in private placement. For CDNetworks, this funding now gives them the ability to make a serious push in the U.S. market for content delivery of video and static content. The funding announcement also coincides with the launch of a new company website.

To date, CDNetworks primary business has solely been in Asia but over the past few months they have been out in the U.S. market selling services and ramping up their sales team. From the pricing I have seen in RFPs, they are not the low cost leader in the space and they are not, I repeat, not undercutting Limelight and others on price just to win market share. I think all CDN providers understand by now that they can't give this stuff away just to win market share and expect to stay in business. The pricing "war" that so many analysts are "speculating" on is completely overblown in the market. Just because a new provider enters the market does not mean they are selling on price.

Comments

[John]

Even with high pricing most CDN's are loss leaders. Look at the massive investments compared to the revenues. Bubble 2.0!
We outsourced to a steady company, StreamZilla. No investors, no loans, they're profitable - and with considerably lower prices than these CDN's. You should write an article about those guys!

[Dan Rayburn]

My guess is that the person who posted this may work for the company as the e-mail address used is not valid and the IP address comes from Europe.

That being said, I know the StreamZilla folks but comparing them to a global CDN is not a fair comparison. StreamZilla is a Europe only regional hosting provider that has hosting packages that start at about $300 a month and are tailored to small and medium sized customers. Nothing wrong with that, but comparing them to a global CDN is not an apples to apples comparison.