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#5 Price Aggressively
The surge in online video traffic, projected to increase at a compound annual growth rate of 32% through 2015**, has also ushered in a slew of new content delivery networks. This swell in traffic has triggered volume discounts by rival content delivery networks. Add an influx of new CDN providers to the equation and the result is a buyer’s market for content owners, with entrenched competitors like Akamai offering rates as low as 5¢ per gigabyte***
All of which means that aggressive pricing is a must if you are to get a foothold in the market.
Because the cost savings derived from reducing transit volumes across your network are so great, you shouldn’t let revenue goals stop you from on-boarding content owners — even if that requires an aggressive pricing strategy. This is especially true at off-peak times when you have excess unused capacity.
Skytide can help you to optimize your pricing to compete effectively. For instance, our analytics and reporting can help you to measure how much traffic your CDN offloads from its network. Skytide can also help you to identify which time periods are peak and off-peak for each PoP and geographic zone.
Read our white paper, “5 Ways Operator CDNs Can Land More Customers“