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Seems like a good opportunity for Netflix to raise their prices in S.Korea and use a portion of that increase to pay what the courts seem like they're going to
by wccrawford 5y ago
Seems like a good opportunity for Netflix to raise their prices in S.Korea and use a portion of that increase to pay what the courts seem like they're going to demand.
The rest of the increase would go to offsetting the additional burden on Netflix that this will cause by forcing them to treat S.Korea differently than everyone else.
I'm honestly surprised that any corporations are paying that there, but if the government is going to requirement, there's not a lot you can do about it. It's a very bad precedent and I don't see it actually going well for S. Korea. Putting up extra barriers is a way to keep companies out. We usually call it a "tariff", but that's generally for physical goods. And the goal is often to prevent as many of those goods from being imported.
What would S.Korea's internet look like if even 1 of the major players decided to just block the country instead of paying the fees?
- marcus_holmes 5y ago> I'm honestly surprised that any corporations are paying that there, It benefits Netflix in the long term as it raises barriers to entry for disruptive competitors. If, in order to reach an ISP's customers, you have to pay the ISP for the privilege, then creating new startups is harder and the incumbents can just price it in. I wouldn't be at all surprised if this became more common elsewhere, as everyone involved benefits. Except us, the customers, of course, but we don't get a seat at this table and the people who should be fighting for us are taking bribes (sorry "campaign donations").
- criley2 5y agoWhile I see the logic in what you're saying, the Netflix business moat is already much deeper due to A) billion dollar content deals with major providers and B) billion dollar investments into first party content. Content is king and competitors are already priced out long before minor squabbles over bandwidth.
- marcus_holmes 5y agoThe disruptor may have an answer for the content problem that Netflix never thought of. It's a competition for attention, after all, and if someone else can provide a more compelling alternative than video for people's attention then that will mess with Netflix' business despite its content deals.
- 14 5y agoThis reminds me of Netflix vs blockbuster.