Netflix falling bandwidth costs confirm networks are no barriers
I’ve stated before that “The real barrier to innovation isn’t the cost of bandwidth” and it looks like Netflix’s 10K filing confirms this. Despite a huge increase in online content and users, bandwidth costs have barely risen. However, it would seem that the US Postal Service is a significant and increasing cost to Netflix’s bottom line.
Bandwidth at the Netflix end of the transaction isn’t an issue. But Netflix is forcing costs up at the customer end, where bandwidth is MUCH more expensive to obtain and transport. Especially as it tries to avoid those postal costs.
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