12-01-2017, 02:44 PM
(12-01-2017, 01:12 PM)Benton Wrote: That, I think, is the direction most sites are going. I know media is. Most of the new models that are succeeding rely on little to no advertising, they're subscription based services. And that's carrying over in other areas (Netflix, Spotify, etc). But part of what makes those sites able to charge a low fee is that they can keep operating costs low by not having to pay providers ATT or Comcast.
They absolutely pay bandwidth fees. Netflix price to stream a movie has actually dropped from 5 PENNIES to 2.5. The bulk of their costs - and the price you pay - is actually for content. Spotify distributes like 70% of it's money in royalties based on play counts, and the other 30% is their revenue. Theoretically, if people double how many songs they play on Spotify, Spotify will take a bit of a hit for bandwidth costs (but we are talking 1GB of music = @7 hours, which costs them like 3 pennies, or a 1% hit to margins).
For content providers, there are basically 3 models - advertising, subscription or a mix. I don't see how NN could or should change that.
The concern about a layer of "middle man" fees where the ISP charges you to access certain cites is a non-starter, IMO. These are national deals, and if Comcast tried to paywall HBO, for example, HBO probably says "screw you" and hurts Comcast massively because Comcast DOES have significant competition in many markets.
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