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(Ignoring sunk costs:)

The ongoing costs to an ISP are not the costs of providing bits. Let me hand-wave a bit and say the 99th percentile of families is using 4 hours of Netflix per day, and that's about 1 GB per hour, so 120GB per month, which is maybe a few bucks of costs to the ISP.

The ongoing costs to an ISP are constantly building out and upgrading the network so that when we want to watch Netflix on Tuesday of next year at the peak hour we can. If there is metering or preference used, it should only apply at the peak times.




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