Playing Devil's advocate here for a second:
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? That is to say, if Netflix is really the sole driver of Network upgrades, why does Verizon have to subsidize their costs of business?
I'm not taking the stance that this is correct, only querying as to why the dynamics here are such that we automatically assume Netflix is in the right. Guilt tripping Verizon into adding more routers is a major net positive to Netflix's business.
Yes, ISP customers are paying for access but the business reality is that the ARPU per subscriber is decreasing every year at a rate lower than additional subscriber acquisition can sate. As Wall Street demands growth, it has to come from somewhere, and since Carriers are not able to sell consumers additional services (no matter how hard they try), they need to find another set of wallets (content providers). They're not utilities and have a profit motive, right?
Again, I'm not saying this is correct, simply trying to add another viewpoint to the conversation.
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? That is to say, if Netflix is really the sole driver of Network upgrades, why does Verizon have to subsidize their costs of business?
I'm not taking the stance that this is correct, only querying as to why the dynamics here are such that we automatically assume Netflix is in the right. Guilt tripping Verizon into adding more routers is a major net positive to Netflix's business.
Yes, ISP customers are paying for access but the business reality is that the ARPU per subscriber is decreasing every year at a rate lower than additional subscriber acquisition can sate. As Wall Street demands growth, it has to come from somewhere, and since Carriers are not able to sell consumers additional services (no matter how hard they try), they need to find another set of wallets (content providers). They're not utilities and have a profit motive, right?
Again, I'm not saying this is correct, simply trying to add another viewpoint to the conversation.