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What exactly does "mutually beneficial" mean, though? It doesn't necessarily mean traffic is flowing in both directions. Theoretically, when Netflix delivers
by comex 13y ago
What exactly does "mutually beneficial" mean, though? It doesn't necessarily mean traffic is flowing in both directions. Theoretically, when Netflix delivers traffic to residential customers, Netflix benefits through subscription fees, and the residential ISP benefits in that it is able to offer a fast internet experience to its paying customers. If it were easy to switch ISPs, then customers might switch to those with better Netflix streaming, giving Netflix bargaining power. Unfortunately, not only is it not easy to switch, but many areas have effective ISP monopolies... and on the other side, switching from Netflix to competing video services is easy, so customers are much more likely to punish Netflix than their ISP for bad interconnection. But that arguably has elements of market distortion to it.
- jjoonathan 13y agoExactly. Cogent isn't shoving a burden onto Comcast because that "burden" is part of Comcast's value proposition to its customers. Calling it a "burden" is like saying that Zappos is placing a burden on UPS and should pay above the standard rate to have their product delivered. Of course, UPS doesn't have a monopoly, so they can't get away with that crap. But they reveal the truth: this is all about leverage.
- allochthon 13y ago> Unfortunately, not only is it not easy to switch More to the point, in the US there's often only two players, a DSL and a cable provider, so little meaningful choice.