Among the victims of Stage6’s imminent demise will be its CDN, Limelight Networks, according to CDN business insiders. There is speculation that it’s a big-ticket hit for Limelight. When contacted, a Limelight spokesperson said the Stage6 news was already factored into its results and directed us to the following transcript from its quarterly conference call on Feb. 20th:
“Second, we have a few large customers in the ’emerging business model’ category that are undergoing business model shifts that will involve decreased traffic levels starting within the first quarter. It is important to note that these are not competitive losses but, instead, changes in operating profiles of these businesses. “
Still, the shuttering of Stage6 is just more bad news for Limelight, which recently blamed the writers’ strike for its poor performance.