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Building and staffing data centers is a non-trivial fixed cost required to run a streaming video service.
by nickm12 14y ago
Building and staffing data centers is a non-trivial fixed cost required to run a streaming video service.
- rogerbinns 14y agoTrue, but you can buy the streaming service as you use it. There are numerous CDNs out there, and Amazon itself has the same. Amazon did not need to spend an additional billion dollars in order to serve the first 10,000 customers of video. If the expenses are coming from additional fixed infrastructure then the article is still misleading - the more viewers you have the lower the per viewer cost. The article in no way implies that infrastructure is relevant to their monetary claims.