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CDNs will reduce bandwidth costs per user to essentially nothing. Content creation is the lion's share of their costs.
by spyspy 9y ago
CDNs will reduce bandwidth costs per user to essentially nothing. Content creation is the lion's share of their costs.
- joering2 9y agoBiggest CDN charge $9 per 1TB of transfer... how is watching 20TB per month worth less than netflix fee so that they actually make some profit?
- jtmcmc 9y agoat the scale netflix transfers data they pay much much less than this. They also do direct peering and will put boxes in your ISP datacenter - https://openconnect.netflix.com/en/ https://openconnect.netflix.com/en/
- joering2 9y agoIm sorry it still doesnt make sense to me. "buy 1 tone of fish pay $10 per kg", "buy 10,000 tone of fish, pay 1 cent". Doesnt make sense!! At some point more is not that much cheaper. I doubt coming back to my CDN asking for price on 1,000 TB would bring price to 1 cent per TB.
- svachalek 9y agoWould it help to say OpenConnect is the CDN?
- JetSpiegel 9y agoIf they have a box in your ISP with a cache of the content, those Gigabits are coming from a a LAN and are basically free, only limited by the infrastructure.
- jonknee 9y agoNetflix is the single largest bandwidth user in the world, they don't pay list prices.
- kondro 9y agoI really doubt people are watching 30+ hours of video per day per user (ca. 1TB/month).