FCC plan would give Internet providers power to decide how you use your internet

[Benton]

(12-01-2017, 02:44 PM)JustWinBaby Wrote: 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.

You are correct. I should have said they keep costs low by not having to pay additional fees.

But it's not just a national issue. Not all companies are as big as HBO and Comcast. I operate two sites. The revenue off them is nearly negligible, but it funnels interest and other revenue into other products. Sort of like social media, where I make no money, but use it to drive other products. If the model changes and there's significant cost increases, that pretty much knocks out the use of my sites.