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https://en.wikipedia.org/wiki/Cross_subsidization https://en.wikipedia.org/wiki/Cross_subsidization They don't make money, they just want to gain market levera
by lapinot 8y ago
https://en.wikipedia.org/wiki/Cross_subsidization https://en.wikipedia.org/wiki/Cross_subsidization
They don't make money, they just want to gain market leverage. This will make their network more interesting because of crowd effect. Akin to fb letting people create profiles/chat, google giving free search results/emails/file hosting, etc. Just finished reading a book about this, see [1] for a review.
[1] https://blogs.lse.ac.uk/lsereviewofbooks/2017/06/05/book-review-platform-capitalism-by-nick-srnicek/ https://blogs.lse.ac.uk/lsereviewofbooks/2017/06/05/book-rev...
- ksec 8y agoYes, Cross Subsidisation assumes you have one market segment or product where you have heavy leverage / control and margin to subsidise another. Example Intel could afford the billions of R&D on 4G Modem and losses on Mobile SoC when they have 90% of Server Market and Mobile PC Market. None of those CDN Price Plan I mentioned in the original comment works in those margin, and has little lock in ecosystem. Facebook's business modem is simple, Ads. And its business model only works once you reach a certain level of user and usage.