Akamai 4Q16 Earnings Call Notes

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Frank Thomson Leighton

I think there’s going to be changes with net neutrality

“With net neutrality, I think there’s going to be changes there with the new administration. I think a lot of rules that existed before may go away, and I don’t think that really makes much difference to our business. We weren’t regulated in the first place, and I don’t see anything coming there that would be bad in any way for Akamai.”

Media business is very healthy

“Even years there are more events, but as we’ve talked about in the past, any given event gives us some revenue, but it’s not really swinging the needle. Now sometimes with Olympics and so forth new devices will come out and someday like VR, for example, we’ve started to do some of that, and that can drive traffic levels on a more sustained basis afterwards. But I wouldn’t read a lot into that, and I think the Media business is very healthy. We’re seeing very strong growth in OTT, very strong growth in our gaming customers and just Modulo the very big, the six platform companies that are doing more on their own, the Media business has been very good.”

OTT growing at a solid pace, but hasn’t exploded yet

” I’d say OTT is growing at a very solid pace. It hasn’t exploded. At times people think that might happen, but that’s not taken place. I think there’s a lot of new offers out there – continue to be new offers. People are going to try lots of different kinds of things, and some will have more success than others in the marketplace. It is a very hard thing to do. Just even the delivery of the videos at high levels of quality is very hard, and that’s where we really excel.”

James Benson

OTT and VR are catalysts to drive growth in media business

“And I’d say that has been the bigger catalyst driving growth in the Media business that those – the gaming and the software download area tends to be much more spiky. And you’ll have surges at times and then it won’t at other times. So I think the catalyst for growth in the Media business is going to be OTT. I don’t think you’re going to see the catalyst. You may see even a catalyst, as Tom mentioned, as you see more VR and things like that in the gaming space that require performance to work well, but I think that between things like that and OTT, that’s going to be the cause of kind of re-acceleration in the Media business.”