CDN Pricing Content Delivery Network (CDN) industry watchers recently reported seeing pricing of $.01 per GB of data transferred. What does this mean? Let’s translate into plain language. A DVD holds about 4GB (Gigabytes) of data. So you can imagine a DVD with a very long movie, all kinds of extra scenes and goodies, would be require about 4GB of data. To download this DVD via the internet at $.01/GB, the cost will be $.04 for the DVD. So for a cost of $10,000 per month, a content provider can deliver 250,000 DVDs to consumers. To get a sense of the media industry scale of this, let’s consider a recent movie: Sherlock Holmes, that grossed $62,390,000 in its first week. Assuming a ticket price of $7.50, this means 8,318,666 people saw the film in the first week. If that entire first week gross was spent on delivery of a fully loaded DVD of Sherlock Holmes, that first week could see delivery of 1,559,750,000 DVDs. Be careful – I’m not comparing revenue to cost here. I’m simply giving a sense of scale of what $.01/GB means to the industry. I can remember when, while working at leading CDN provider Speedera Networks, we were afraid that pricing would fall to $1.00/GB. This was in about 2002.