Featured by Streaming Media Blog’s Dan Rayburn: A Look into Netskrt’s Unique Approach to CDN Profitability
Guest author
Dan Rayburn is a 30-year streaming media industry veteran recognized as a foremost authority on streaming technology and OTT business models. Conference Chairman for NAB Show Streaming Summit, his widely-read streamingmediablog.com serves broadcasters, content owners, and industry executives.
Streaming Media Blog’s Dan Rayburn has published a new article featuring the unique model and market approach we’re taking here at Netskrt. In it, he explores how we’ve built a model for scaling CDN capacity that is designed to be cost-effective and profitable in a streaming landscape defined by relentless performance expectations and pricing pressure.
Dan provides a detailed glimpse into Netskrt’s role in supporting tier-one live streaming events. He connects that work to Netskrt’s novel underlying approach: broad, deep deployment of pure software PoP instances that reduce underlying cost and increase deployment flexibility.
As Dan reports, Netskrt’s current steady-state capacity is approximately 65 Tbps, while our model allows substantially more capacity to be instantiated within 24 to 48 hours when required. He also highlights the fact that Netskrt can spin up additional capacity in minutes using cloud-based spot instances.
The article further explains Netskrt’s stratified infrastructure strategy, aligning CapEx-oriented deployments with persistent demand and leaning toward OpEx-based options when demand is spiky and seasonal, as is common with major live sports events.
With approximately $30 million in invested capital, Netskrt expects to exceed a 1:1 capital-to-revenue ratio in 2026 and reach a 1:4 capital-to-capacity ratio. Conventional CDNs typically operate closer to 4:1 and 1:1, respectively. As Dan notes, Netskrt’s current growth trajectory, which has picked up significantly over the last year, puts us on pace to reach 150 Tbps by the end of 2026.
Read the full article by Dan Rayburn here.