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Because the price you pay doesn't account for everyone using their connection at the same time, if this was the case you would need to pay a lot more. ISPs can
by Hikikomori 2y ago
Because the price you pay doesn't account for everyone using their connection at the same time, if this was the case you would need to pay a lot more. ISPs can either increase the price you pay directly or try to get that money elsewhere. Doesn't really matter if you pay for this to your ISP or to them via Netflix.
The real problem is lack of competition and insane profits of US ISPs. Where I live its common for the local municipality to build out fiber and run their own ISP that lets other ISPs connect to their network and sell access. In that case part of my cost goes to the local ISP (which isn't profit driven) and the Internet providing ISPs can compete on price.
- michaelt 2y ago> Doesn't really matter if you pay for this to your ISP or to them via Netflix. Of course it matters. If my ISP demands an extra $1 from me, I can move to a different ISP. If my ISP demands an extra $1 from Netflix, Netflix can't move me to a different ISP. That's pretty important, as our whole economy is built on the assumption that raising prices lowers demand.
- Hikikomori 2y agoAnd when all other ISPs charge $1 extra? Most people cannot choose between different ISPs without moving anyway.
- michaelt 2y agoIf only there were some sort of legislation designed to reign in monopolies, duopolies, collusion, and business practices that prevent competition :) You know who doesn't have a monopoly allowing them to charge whatever they like? Netflix.
- Hikikomori 2y agoBased on US ISP profits I'd say there is practically no regulation and they even split up the market so there's no competition so most consumers only have one choice. Netflix competes with all the other streaming services no? If they increase the price too much people will stop subscribing. Or is your argument that they and other content owners should be forced to sell their content to all other streaming services?
- JSteph22 2y ago>Based on US ISP profits I'd say there is practically no regulation There's plenty of antitrust laws already on the books. It's just a matter of enforcement.
- lupusreal 2y agoI don't use Netflix (true), but if almost everybody else does (also true) then I and up paying more to subsidize them. Also there's only one reasonable option for internet in my neighborhood. Starlink or cellular would cost even more and for what? I'd still be subsidizing Netflix use. Splitting up Netflix doesn't help; if everybody falls asleep watching a plethora of streaming services instead of one, they're still wasting bandwidth. Similarly, splitting up ISPs doesn't solve the problem either. The real solution would be to charge everybody for what they actually use. Metered data, with the price fluctuating with demand. The way the electrical system works.
- Wytwwww 2y ago> The way the electrical system works. But that's hardly comparable? Each kWh costs some amount of energy to generate. Do you think it costs an ISP meaningfully more to run a 10 Gbps at 90% than 70%?