Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jonathan Atkins - RBC Capital Markets.
Jonathan Atkins - RBC Capital Markets
A couple questions, the next-generation CDM products slated for launch in the second half, if you could maybe just review kind of the main differentiators that you hope to see there. Then on the churn, you indicated there was slightly elevated level due to customer consolidation and qualitatively, what do you sort of expect for second half churn in both Colo and IP given what you’ve seen so far in the quarter?
Eric Cooney
I’ll comment on the CDN question and let George comment on the churn. In terms of the CDN, I guess at a high level I’ll say, we obviously haven’t launched the product yet so I’d prefer not to get too much into the details in terms of what specific features and functions we’ll offer, but the short description is we’ve specifically decided to narrow the focus of our CDN offering to video specific or video centric offering as opposed to a small file, HTTP download type of CDN offering.
In terms of video CDN, the tag line is we’re looking to deliver video at a superior quality and superior performance relative to what else is out there, and will implement things that provide for features and functions like dynamic transcoding, device detection, network awareness, bandwidth awareness, etc. and implement that in a way that we think provides at the end of the day a better consumer experience, a better video quality experience relative to what else we think will be on the market at the time.
George Kilguss
Jonathan, with regard to the churn, we’re not giving guidance for third quarter. I would say in general, we did have elevated levels of churn especially in the data center unit which was 2.9% in the quarter up from 1.3% a year ago. Another data point, our revenue churn is really a combination of down grades as well as customer losses, and in this particular quarter, roughly 60% of our churn was related to down grades in the quarter.
We did have a couple of large customers that did consolidate their data center footprint and so we saw our revenue churn spike in the data center market. We’re constantly trying to work to reduce churn and we’ll continue to try to do that, but we have not provided guidance for churn for Q3.
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