Limelight's CDN Pricing Gets Disruptive

Dan Rayburn at the Business of Online Video tracks pricing for content delivery services as closely as anyone. When analysts predict CDN pricing wars, Dan is usually the voice of caution, adding balance and context to the conversation. So his post this morning about the recent price cuts by Limelight Networks (LLNW) got my attention.

Limelight has been "getting a lot more aggressive" on pricing for video delivery, and telling customers that the new pricing is driven by recent infrastructure improvements that have lowered Limelight's delivery costs. Dan had anticipated this would happen eventually, but wasn't expecting to see it until the second quarter of 2009. He writes:

Limelight's recent momentum would have seemed unlikely back in February, when the company lost its patent infringement lawsuit with rival Akamai (AKAM). At the time, analysts questioned the company's ability to continue operating and predicted a sale to a competitor or telco.