Quote:
Originally Posted by Snake Doctor
Google's transit costs are close to zero the same way Level3 or XO's transit costs are close to zero.
It costs virtually nothing to send packets through a network, and peering agreements allow them to use other people's networks without paying for it in dollars.
Their hardware costs are probably astronomical, and it certainly cost them a fortune to build the network they have, but now that it's in place it costs them about as much to serve a video as it costs AT&T to connect a phone call.
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what really cool about that is that google can now buy other money losing sites and by leveraging this surplus bandwidth turn them into profitable companies.
should be interesting when peer to peer browser based stream becomes mainstream
under that situation 10,000 people watching the same video will only cost google the download of 1 video.