OTT Platforms In-Source CDNs, Challenging Providers

Major OTT platforms like Netflix, YouTube, and Disney+ are increasingly building their own CDN infrastructure, reducing dependence on third-party providers. This shift challenges traditional CDNs by shrinking their revenue from large clients. It highlights the need for providers to target midsize publishers.

In-sourcing involves deploying proprietary PoP networks and origin servers optimized for streaming. This allows OTTs to control latency and costs, achieving lower p95 delivery times. However, it requires significant capital investment.

The trend pushes CDN providers to offer specialized services like managed Multi-CDN orchestration. Midsize businesses benefit from these tailored solutions, which improve availability without in-house infrastructure.

Providers must innovate to retain market share. Expect more focus on value-added services like edge computing and security to attract diverse clients.