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join:2002-05-12
Phoenix, AZ

Bandwidth isn't an issue

Like one of the previous posters said, bandwidth obviously isn't a cost issue if Netflix is able to offer their product at such a low cost. Netflix has to output just as much bandwidth as ISPs have to receive it and look at how cheap it is! Especially given that Netflix has it's fair share of fixed cost overhead as well, and yet it's still able to offer it at a very reasonable price. Now I'm well aware that ISP's need more bandwidth because of other network traffic besides Netflix, but obviously it isn't breaking the bank. If anything, an ISP's biggest expense and greatest congestion point is bandwidth at the last mile (node to premises). But that's why we pay them a monthly fee, and believe me, there is a profit margin included in that fee. The fee includes service and maintenance costs, and of course, profit. That's why this whole idea of caps doesn't make any sense other than to protect their TV revenues, or possibly a predatory move to make customers pay additional fees of pure profit, in addition to the profit already included in the monthly fee.