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Online Video Commoditisation: “Not A Dirty Word”

by Naresh Sarwan on September 29, 2010

Dan Rayburn of discusses the issue of commoditisation on a recent blog and contends that it is not a “dirty word” but a healthy trend that allows vendors to demonstrate how their technologies are acquiring mass acceptance and scaling to meet increasing demand:

No single individual including myself decides what technology or services are commoditized in our industry. The market and customers decide what they think is unique and worth paying more money for and what isn’t. Last year we saw pricing for video delivery services across CDNs drop on average between 35-40%. The reason for this is that content owners decided that the differences amongst many of the vendors, specific to video delivery, were very similar. Many CDN vendors want to disagree with this notion but the fact is, every CDN is focusing on services they call “value add”. They are spending more of their time and effort to show customers the differences in their services, the value they provide and the reason why a customer should pay more for that service. This is a good thing!” [Read More]

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