4 ms·

>What is "average" profitability supposed to mean? Comparing several ISPs and finding their profitability similar and therefore all "average"? You obviously can

>What is "average" profitability supposed to mean? Comparing several ISPs and finding their profitability similar and therefore all "average"? You obviously can't reasonably compare them to tech startups or family owned restaurants or the like. >But they're making billions of dollars. S&P500 average maybe. You can use a bunch of different ways, but they are pretty average by any measure. So what if they make billions, they have hundreds of billions of dollar of capital invested. Do you honestly think we should measure profits in nominal dollars? >Still not sure how billions of dollars is possibly considered "a low amount." Are you running a low IQ shtick or something? >Netflix is also paying to license (or produce) its content and it delivers it with no commercials for $9/month. Zero day license v. 6-9months after release.

AnthonyMouse 12y ago
> You can use a bunch of different ways, but they are pretty average by any measure. They do significantly better than other utility companies and are significantly less volatile than most companies that provide the same ROI. > Zero day license v. 6-9months after release. Network programming is broadcast over the air for free from day zero, just by putting commercials in it, and for that $9/month Netflix is producing a fair amount of commercial-free zero day original content on top of what they're licensing. That's really not it. The math on this is very simple. It takes some number of dollars to operate a data network. It takes some number of dollars to license content. If you add these two numbers together, people are willing to pay more than the sum to get both of the things. It stands to reason that if the content is instead sold by some third party who assumes the cost of licensing the content, that cost can be removed from the cost of the data service while still allowing both to be profitable.

AnthonyMouse 12y ago

> You can use a bunch of different ways, but they are pretty average by any measure. They do significantly better than other utility companies and are significantly less volatile than most companies that provide the same ROI. > Zero day license v. 6-9months after release. Network programming is broadcast over the air for free from day zero, just by putting commercials in it, and for that $9/month Netflix is producing a fair amount of commercial-free zero day original content on top of what they're licensing. That's really not it. The math on this is very simple. It takes some number of dollars to operate a data network. It takes some number of dollars to license content. If you add these two numbers together, people are willing to pay more than the sum to get both of the things. It stands to reason that if the content is instead sold by some third party who assumes the cost of licensing the content, that cost can be removed from the cost of the data service while still allowing both to be profitable.