CDNs are distributed computing systems, built to smoothly and quickly transmit large media files like videos and music online to many users. Every media company needs a CDN.
Los Angeles-based EdgeCast has differentiated itself by charging separately for bandwidth component of its service, instead of lumping it in as part of a fixed cost package of other CDN services. In other words, while other CDNs force customers to lock into a contract to pay for bandwidth as a fixed price, EdgeCast adjusts the bandwidth cost as the market price swings up and down, it says.
There’s speculation that market leaders Akamai, Limelight and CDNetworks are feeling pricing pressure, but that’s being debated. Those companies have business partnerships with many large music and video sites.
Disney, which is also reportedly looking to acquire 20 consumer internet startups, is apparently thinking about its delivery costs. Its investing arm, Steamboat Ventures, has led a $6 million investing round into the company — a strategic relationship between the two companies.
EdgeCast previous raised $4 million.