MySpace Dumps Limelight (LLNW) for Akamai (AKAM)

More troubles for content delivery network Limelight Networks (LLNW), via their 10-Q, filed yesterday. News Corp.’s MySpace has apparently dropped Limelight as its primary CDN, opting for larger rival Akamai Technologies.

According to Limelight’s filing, sales to “CDN Consulting,” which resold services primarily to MySpace, represented 21% of Limelight’s 2006 revenue, or about $13.5 million.  Last quarter, however, MySpace business dropped to about 2% of Limelight’s revenue, or about $424,000 — that’s an annual run rate of $1.7 million. An Akamai rep confirms that Fox Interactive has moved much of MySpace’s CDN business to their network. It’s not clear if MySpace has terminated its relationship with Limelight; large content companies often keep accounts at multiple CDNs for redundancy or to juggle traffic.  We have not yet determined when, exactly, the transition took place.

Reps for MySpace and Limelight were not immediately available for comment — we’ll update if we get new information.

See Also: analysing CDN Pain: What’s Next For Akamai (AKAM), Et Al

Disclosure: SAI Chairman Kevin Ryan is CEO and an investor in Panther Express, a NY-based CDN.