>If Netflix is 35% of global internet traffic at peak capacity (as per the Akamai CEO's comments at a number of events), is it really fair to treat them like ev

>If Netflix is 35% of global internet traffic at peak capacity (as per the Akamai CEO's comments at a number of events), is it really fair to treat them like every other company? I don't see why not. I think it might make more sense to think of it as streaming video, the category of goods, rather than Netflix, the company. So 35% of global internet traffic is people streaming videos. And who cares that it's video; from Comcast's or Verizon's perspective, it's just an awful lot of bytes. So if the issue is the amount of traffic, it's just Verizon complaining that we're using too much bandwidth (yes, us; we're the ones watching Netflix). I get that's expensive to deliver all those bytes to my home, but that's what precisely what I'm paying for. That a huge number of those bytes comes from the same originator shouldn't enter into it. It's just a site on the internet. EDIT: Also, I wanted to add, that all of the traffic comes from the same source actually helps Verizon from a practical standpoint, since it can solve a lot of it with only a small number of interconnects. Compare to a more fragmented market, where Verizon might have to make specific peering provisions for a bunch of different 5%-market-share content providers to fulfill its customer obligations. > Guilt tripping Verizon into adding more routers is a major net positive to Netflix's business. All sorts of businesses benefit from the ecosystem of other businesses around them. If I run a store in rural Iowa and Acme Co opens a huge factory there, then I stand to make a bunch of money from all these newly employed customers. Should I subsidize Acme? [1] After all, hiring people is expensive. If I open a hardware store near a bunch of planned construction, should I pay those real estate developers? You can expand this to the whole economy being basically just a set of interdependent positive externalities. Maybe Verizon should pay Netflix for making their service more valuable? Or we can use the simpler model, in which you get to charge your customers. Verizon charges us for delivering the content we request. Netflix charges us for the content itself. Cogent (or whomever) charges Netflix for its bandwidth. Everything works. > They're not utilities and have a profit motive, right? They could charge more, and they could even charge per unit bandwidth (or tiered bandwidth) if they wanted. "My business isn't working that well" is not a good excuse to hold your subscribers hostage. You could equally use "Wall Street demands growth!" to defend Comcast's new practice of robbing banks. Imagine I bought a popular TV set in 1980 to watch broadcast content, but after I got it home, the TV maker remotely activated a previously undisclosed filter that would only show certain channels. Then they went to ABC, NBC, and FOX and said, "So guys, you want your content seen? My margins on these TVs keep going down, so somebody's gotta pay." Not cool, right? EDIT: Another point, probably the most important. The "problem" here is ridiculous: it's that demand for Verizon's product (i.e. internet access for end-users) is increasing a lot because it is becoming more useful to its customers. That's what every business wants! "We sell internet access and everyone is now using so much more internet! Whatever shall we do?" The idea that Verizon is up against some sort of profitability wall because of how popular its product is becoming and thus needs to charge the companies responsible for that increased popularity...it's simply not credible. Not sure why I didn't think of this point earlier. Edit: s/Comcast/Verizon, since that's specifically who we're talking about. [1] This actually does happen in the form of tax incentives for companies opening factories. It's a bit messed up.