AT&T Invests in Content Delivery Network

AT&T has added new partners and invested $70 million for its content delivery network. The goal is to fuel development of services aimed at helping companies package and deliver web content to the TV, PC and mobile device.

AT&T's Digital Media Solutions suite already includes services for content distribution and management as well as broadcast video and digital signage. The telco has teamed with software firms ExtendMedia, Qumu and Stratacache, that format and package content for streaming video, live and on-demand webcasting and the delivery of advertising.

By yearend, AT&T will complete its $70 million global CDN network infrastructure investment. In the coming months, the telco says it will work with the new software partners to provide “one-stop shopping and simplified network-based solutions to encode, deliver, manage and support video and multimedia files.”

To further drive its content agenda, AT&T is creating a new unit to accelerate the company's activities in the content space, and it named Cathy Martine, executive vice president-Content Distribution, to lead AT&T's enterprise digital media efforts.

"Today's announcement is the latest proof that AT&T is delivering on its promise to connect businesses to their world, and do it better than anyone else," said Ron Spears, group president, Global Business Services, in prepared comments.

By paying for CDN services, companies limit or obviate the need to buy and build broad, far-reaching networks to deliver rich media services with consistent performance to customers during normal and peak periods.

A top and longtime content delivery network customer, CBSSports.com, uses Akamai Technologies Inc. to provide live streaming of basketball games to the masses during March Madness every year. The multi-week sports playoffs is said to be the largest live streaming web video event of the year.

With an estimated 1,500 web video sharing sites, some web-only operations and some owned by traditional businesses, content delivery network services have become big business.

In the content delivery network space, AT&T’s up against established powerhouses such as Akamai., Limelight Networks, and Mirror Image Internet.

The sector has gained attention starting in January thanks to patent lawsuits between content delivery network companies, such as Level 3 and Limelight. Both hold numerous patents for their networks and services and have been busy defending them

The company did not detail the planned services nor how it will spend the $70 million beyond bulking up its content delivery network in Europe and Asia.

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