US content delivery services revenues will grow about 20%, in 2003, from the estimated level of $186 million in 2002, according to In-Stat/MDR. The high-tech market research firm reports that growth will come from both existing customers expanding their use of content delivery services, and from new customers subscribing to these services. "Content delivery services are one of the key forces shaping the next-generation Internet and corporate Intranets," says Henry Goldberg, a Senior Analyst with In-Stat/MDR. "They improve the speed of Web site delivery, provide high-quality video/audio streaming, rapidly download files, and are beginning to extend into distributed computing of Web-based applications."
Recently, In-Stat/MDR conducted a survey of 485 end-user organizations on the adoption of content delivery services or in-house CDNs (where organizations purchase and manage a CDN themselves). About 23% currently use a content delivery itself (either by itself or as a hybrid solution with an in-house CDN), but almost twice as many currently use an in-house CDN. According to Goldberg, "Converting in-house CDN users to outsourced content delivery services should be a key goal of content delivery service providers, because this would greatly increase the market for these services"