1 week Limelight Networks News: Why LLNW Stock Is Getting Slammed 30% Today InvestorPlace . Of all the CDNs, I’m told CenturyLink (formerly Level 3), has the largest percentage of Disney’s traffic as it stands today, based on volume. Two weeks ago, PiperJaffray put out a report saying that by 2024, the Disney+ traffic business “could result in $68M in revenue for Akamai.” And when combined with traffic from Hulu and ESPN+, Disney could be a “>$100M Media customer by 2024.” I’ve been getting so many questions about these numbers that I thought a blog post that details some of the costs and deployment details would be helpful. While this is a metric to keep a close eye on, this small company has nonetheless been able to stay on track with its bottom-line goals for full-year 2020. The economic fallout from the ongoing pandemic is lifting the lid on the vulnerabilities of certain companies struggling to weather the drastic peaks and valleys of the coronavirus stock market. It’s widely known that Disney Streaming Services and CenturyLink have had a great working relationship for a very long time. “Preserving outstanding video quality and service reliability while reducing latency all comes down to robust delivery strategies. Some OTT providers have suggested that when a service gets to 20M subscribers, that’s the threshold from a size and scale standpoint of when it makes sense to consider building your own CDN.
The stock is down 37% from its January trading price.
In its second-quarter earnings release, the company reported nearly $35 million in operating losses along with a $3.1 million inventory writedown.
Electric car company Nikola (NASDAQ: NKLA) made headlines with its $12 billion initial public offering (IPO) this past June.
But nowhere in the report does it say what bitrates they used to come up with the total bits delivered number or what percentage will be on a smaller screen. Booming web traffic during the economic lockdown in the spring has started to moderate, and the first hyper-growth stock to be tamed was Fastly (NYSE: FSLY).
It’s not an efficient model at all for SVOD OTT providers. Disney could build out a CDN for the delivery of Disney+ content for under $100M in initial CAPEX costs.
How Sony and Microsoft Will Use Third-Party CDNs for New Console Launches, Continuous Innovation Is a Competitive Strategy: Why 870 Million Monthly Users in Asia Depend on HEVC and AV1 Codec Standards, Fastly’s Acquisition of Signal Sciences Is All About Applying Application Level Security to Edge Computing Deployments. With all that said, let’s look at the numbers in the PiperJaffray report and break those down based on the estimates they used. The report also suggests users will watch two hours of video per day and that by 2024, 9% of the traffic will be in SD, 61% in HD, and 30% UHD. Limelight had previously stated its intent to get gross margin back to 40%, but that didn't transpire in Q3.
You must be logged in to post a comment Shares of Coty (NYSE: COTY), a multinational company that owns more than 70 different beauty-focused brands, have fallen by more than 70% from January. Based on Piper’s numbers, they say Disney would spend $196M in total in 2024, to deliver Disney+ traffic to 75M subscribers and that Akamai would get 35% of that traffic, making the business worth $68M in revenue to Akamai in 2024. Nordstrom posted net losses equivalent to $255 million in the second quarter, while its pre-tax losses came to a staggering $370 million. They do say that “HD and UHD generate ~3.6x and ~8.4x more bytes compared to SD”, but they don’t break out what bitrates they are comparing that to. The company also lacks the robust e-commerce presence that has helped other retailers like Walmart or Target resist excess volatility from the pandemic. It’s high-level speculation since we don’t how many subscribers they will have, how many hours each subscriber will watch, what the average bitrate will be across all devices, and what percentage of Disney’s traffic will be served by third-party CDNs.
Shares of Tempe-based Limelight Networks Inc. dipped by more ... the media services provider says it's continuing to grow its on-demand video services by helping The Walt Disney … The stock is down about 80% year to date. Akamai is also one of Disney Streaming Services primary CDNs and I expect when Disney+ launches internationally, Disney will use at least four CDNs including CenturyLink, Akamai, Limelight Networks, and Fastly, with the latter two being critical for Disney’s international launch. That’s 20% fewer bits than they suggest. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys.
Note that the $4M per month figure would be just for pure bit delivery and Disney could have some additional charges on top of that for other functionality or services tied to the delivery of video.
However, with an increasingly crowded streaming market, how will Disney Plus stack amongst the bigger incumbents of Netflix and Amazon Prime Video?
Publishers, CDNs and service providers need to consider built-in contingency and scale. If you continue to use this site we will assume that you are happy with it. The company reported a $1.1 billion loss in Q2, with oil-equivalent production seeing a 7% year-over-year decline. If you’re searching for stocks to buy and hold for the long haul, these 13 risky buys may not be worth the trouble. If Piper is going to quote Akamai on that, I suggest they give attribution, otherwise it’s hearsay. McKinsey & Company’s report also noted that, “With the closure of premium beauty-product outlets because of COVID-19, approximately 30 percent of the beauty-industry market was shut down.”. When Disney+ launches multiple CDNs will be used to stream and download the on-demand videos.
At no time has Akamai suggested it would take Disney $2B to build out their own CDN. J.C. Penney (OTC: JCPN.Q) wasn’t in great shape heading into 2020, and the situation has only worsened as the pandemic drags on.
The massive global scale of these players and their bargaining power may be what’s keeping a lid on Limelight’s margins. Delta Air Lines (NYSE: DAL) has also been hit extremely hard by the pandemic.
The company filed for bankruptcy in May.
The company’s net revenue was down 22% in fiscal 2020.
If you have further questions on this topic, feel free to reach out to me at any time. And you can buy them now for less than $49 a share! Much of the rally in LLNW stock is thanks to a bullish analyst note from Gregory Miller at Truist Financial. The cannabis industry has always had its share of troubles in light of mixed legalization, and the pandemic certainly isn’t doing the sector any favors. The company’s total second-quarter revenue represented a 52% decline compared with the same period in 2019.
One year ago, you could purchase a single share of the company for around $40.
Growing competition in the Canadian cannabis market is another headwind that the company is facing independent of the COVID-19 pandemic. InvestorPlace – Stock Market News, Stock Advice & Trading Tips Limelight Networks (LLNW) news for Friday includes LLNW stock taking a beating after releasing its earnings report for Q3 2020. During the second quarter of this year, the company experienced a nearly $17 million decline in revenue as the result of ongoing cruise cancellations. Another cannabis stock that has had a particularly volatile year, Cronos Group (NASDAQ: CRON) is swimming in a serious financial mire. Piper is using incorrect numbers to make their estimates both on total GB delivered per month, per user, and the cost per GB Disney would pay today, and five years from now. They built the first OTT video service in the market 17 years ago with MLB.TV and if they wanted to build their own CDN, they could do it quickly and cost-effectively with a great quality of service. What Disney’s DIY deployment will look like from an architecture standpoint is unknown, but come 2024, third-party CDNs will not be delivering the majority of Disney+ traffic. Piper is using data that can’t be correlated or compared to today’s market conditions in any capacity.
The post Limelight Networks News: Why LLNW Stock Is Getti…
Disney could build their own CDN long before 2024 if they wanted to and they could also work directly with ISPs to cache Disney+ content inside last-mile networks, like many of the large OTT platforms do today. Although the company reduced its debt load in the final quarter of fiscal 2020, its total net revenue was down by 5%. Gallery: 13 Risky Stocks That Could Crumble in 2021 (The Motley Fool). In the age of stay-at-home orders, closures of nonessential businesses, and prolonged delays of production and film releases (not to mention the boom of streaming services), movie theater chains simply can’t keep up. It’s important to remember that a high-risk stock doesn’t automatically translate to a high-reward investment. Nicholas Rossolillo owns shares of Cloudflare, Inc., Limelight Networks, and Walt Disney. )” Lion’s share means, the largest part of something and majority share means, the greater part, or more than half, of the total. Login, Copyright Advanced Television Ltd © 2001–2020. This net loss figure represented a $45.4 million increase from the second quarter of last year. Disney Plus has finally launched in the UK amid avid excitement. When the company released its third-quarter results on Oct. 13, its balance sheet revealed that Delta is hemorrhaging financially. As a reminder, some of the top users of Limelight's web traffic services are TV broadcast and streaming giants like Disney. *Stock Advisor returns as of October 20, 2020, Like us on Facebook to see similar stories, A woman died while scuba diving in a lake at Montana's Glacier National Park, 'Order from McDonald's': Burger King urges UK customers to support its rivals ahead of a second COVID-19 lockdown. So what is the value of Disney+ video delivery to third-party CDNs in 2024?
Although the beauty industry isn’t the first that comes to mind when considering sectors most affected by the pandemic, this particular market has been dealt a few blows of its own this year. After the promotional period, the price would increase to $0.06 per GB per month.” In 2009 I wrote a detailed blog post on Netflix’s cost to stream their videos and the average price point from third-party CDNs was $0.03, or half of what Piper suggests. What does email security have to do with OTT video delivery?
Disney isn’t looking for “lower cost options”, they want the best user experience they can provide.
Disney has said they expect between 60M-90M subscribers for Disney+ in five years.
Akamai is also one of Disney Streaming Services primary CDNs and I expect when Disney+ launches internationally, Disney will use at least four CDNs including CenturyLink, Akamai, Limelight Networks, and Fastly, with the latter two being critical for Disney’s international launch.
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