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YouTube’s Bandwidth Bill Is Zero. Welcome to the New Net

BizAbh [PersonRank 10]

Friday, October 16, 2009
14 years ago2,859 views

YouTube may pay less to be online than you do, a new report on internet connectivity suggests, calling into question a recent analysis arguing Google’s popular video service is bleeding money and demonstrating how the internet has continued to morph to fit user’s behavior.

In fact, with YouTube’s help, Google is now responsible for at least 6 percent of the internet’s traffic, and likely more — and may not be paying an ISP at all to serve up all that content and attached ads.

Credit Suisse made headlines this summer when it estimated that YouTube was binging on bandwidth, losing Google a half a billion dollars in 2009 as it streams 75 billion videos. But a new report from Arbor Networks suggests that Google’s traffic is approaching 10 percent of the net’s traffic, and that it’s got so much fiber optic cable, it is simply trading traffic, with no payment involved, with the net’s largest ISPs.


DPic [PersonRank 10]

14 years ago #

Isn't trading still paying?

Sohil [PersonRank 10]

14 years ago #

Ya it's essentially opportunity cost. Just because Google didn't pay physical cash, doesn't mean it's "zero".

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