Dan Rayburn notes that significant VC funding has flowed into the CDN market over the past 12 months. Much of this attention is almost certainly due to the explosion of web video and the it’s various providers. Sure, there are lots of other bandwidth hungry web applications like widgets, games, slideshows, etc. but nothing really clogs the pipes like video. And following Dan’s lead it certainly makes sense to expect consolidation in both of these markets. There are only so many users to go around and there is only so much content they can consume.

The good news is that there is still a lack of online video ad inventory so at least that part of the market isn’t saturated. At least not yet.