Analysts say Lime light's IPO and news surrounding the emergence of other CDNs has raised customer awareness of competition in the market, which is causing customers to be more proactive in seeking better deals -- or finding creative ways to control more of the content delivery process themselves. (See Limelight Locks In Microsoft.)
Lime light spoke to this effect in its second quarter earnings call. During the call, CEO Jeff Lunsford said in some cases customers were asking for "lower per-unit rates as their volumes grow and as their business models develop."
Even with lower per-unit prices for larger media deals, analysts believe larger deal volumes at Akamai and Limelight will make up for any loss of profit margins.
"The amount of bandwidth hitting this industry is going to support this pricing model," says Morgan Stanley analyst Brian Essex. "Other players have cut into the bottom line from a commodity perspective, but Akamai and Limelight still provide value-added services, adding incremental value for these types of deals."