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Comcast gets paid at both ends of the data transfer: from Netflix to send the data, and for users to receive it. But the data is only sent once.
by frandroid 12y ago
Comcast gets paid at both ends of the data transfer: from Netflix to send the data, and for users to receive it. But the data is only sent once.
- harryh 12y agoNetflix is paying half the cost, you're paying the other half.
- pas 12y agoThe marginal cost is close to zero. So it's not an issue who pays it. It's not even about reciprocity of used bandwidth (that is used to be taken as the basis for free peering), but the provided value from the traffic flows. And since there's an asymmetry in value (the request data from Comcast's customers is much more valuable for Netflix than for Comcast, and with the added local monopoly of Comcast, there's no real value for Comcast in those reverse flows, because it doesn't help its business position, market share, and just means net upkeep costs) both Netflix and the end-user ends up playing more to Comcast than what'd be reasonable in competitive market.
- rayiner 12y agoHow is that different than the example I just gave? Riders pay to get to businesses near Silver Line Metro stations, and those businesses near the stations also pay. Data might only be sent once, but every internet transaction has two sides that benefit from the underlying infrastructure. Why is it wrong for the company who builds the infrastructure to charge both parties who benefit from it?
- manicdee 12y agoThe problem is more like Silver Line Metro charging people to ride the metro to the business district station, and then charging them more when they want to leave the station to get to the business district. The landlord is charging me rent for the property I'm living in, and then charging me more when I have friends over for dinner.