Rayburn: Consolidation Coming in CDN Sector

Dan Rayburn says the content delivery sector is getting crowded, and substantial consolidation may be coming soon.

The number of companies and entering the content delivery network space is not sustainable, says Dan Rayburn, director of Streaming Media and an authority on the content delivery network business. More than $282 million in venture funding has been raised over the past 12 months for CDN players in an industry that has total revenue of $410 million in the U.S. Rayburn says a dramatic consolidation is inevitable within the next 18 months. Dan was interviewed by Andy Plesser at Beet.tv.

Dan has also posted an item at Seeking Alpha addressing some of the rationales for Goldman Sachs downgrade yesterday of Akamai (AKAM), the market leader in the content delivery sector.