Akamai

Netflix reveals data delivery plans; shares in Akamai, Limelight slump

Netflix reveals data delivery plans; shares in Akamai, Limelight slump

Netflix Inc. On Tuesday confirmed that it had started building its own delivery network, a development that dragged shares in content delivery companies Akamai Technologies Inc. and Limelight Networks Inc. down.

Netflix announced that it would carry on working with its content delivery collaborators for the next few years, but would eventually like to transit the bulk of its data transportation to its own network.

Vice President Ken Florance, of content delivery at Netflix, said, “Given our size and growth, it now makes economic sense for Netflix to have [our own network].”