In this case:

The shipping costs have been paid by the Recipient already:

Shipper - Netflix, ships it COD
Fedex/UPS - Verizon
Recipient - Residential Customer, pays the shipper for the delivery


JBB

On 7/22/14, 1:55 PM, Derek Balling wrote:
On Jul 22, 2014, at 1:50 PM, David Lang <[email protected]> wrote:
Think about this in terms of mail delivery. Would it be reasonable for FedEx or 
UPS to decide that they are delivering a lot of things to a warehouse 
somewhere, so that warehouse should pay them for the privilege of delivering 
the packages to them (even though the people shipping the packages already paid 
the shipping)?
Wait, I fear your analogy has broken.

Shipper - Netflix
Fedex/UPS - Verizon
Recipient - Residential Customer

... Explain to me how the "Shipper" in your analogy has paid Fedex/UPS for the 
shipping?

Some people say that Netflix needs the local ISPs more than they need Netflix 
because the customers are on the local ISPs. That's only the case if the 
customers can't move away from them because there is no competition. Change 
that fact and then the situation changes and if you have the choice between one 
ISP that works with everything and another that Netflix doesn't work on, you 
would find that a lot of people will move to the one that Netflix works on.
And that's why fixing the competition problem is the key, not trying to 
micromanage the backbone interconnects.

If this wasn't the case, why would Verizon care that Netflix is claiming that 
people using their network can't get as an experience?
Because (hypothetically) it's defamatory. I may not be "threatened" by someone 
saying I {did bad thing}, but I'm still going to raise a stink when someone makes it as 
an assertion of fact.

This shows that even the minor amount of competition that there is is enough to 
worry them.
I think you confuse "worry" with "defense of brand value".

D



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