YouTube’s Bandwidth: Cheap, But Not Free check

How much is YouTube paying for the information measure to deliver its one billion page views per day? Credit Suisse says $470 million a year. RampRate says $174 million.  Google says “less than you think that.” currently asserts that YouTube’s information measure bill is zero, citing associate analysis by Arbor Networks. The gist of the report is that YouTube has slashed its video delivery prices through the employment of peering relationships and its in-house GoogleNet connecting its knowledge centers (assembled through the company’s oft-reported purchases of dark fiber).

Can Google extremely be paying nothing to deliver video? Dan Rayburn from the Business of on-line Videosays Wired has misinterpreted the statment by Arbor Networks’ Craig Labovitz that ”Google’s transit prices square measure near zero.”

“Transit prices aren't a similar as information measure prices and Wired ought to grasp that,” Rayburn writes. He conjointly says that though Google will cut its prices by peering with giant ISPs, it’s not going to strike similar deals with smaller suppliers.  

Peering permits 2 suppliers exchanging giant volumes of traffic to avoid wasting cash by connecting directly, instead of routing traffic across their paid net connections.  Peering is usually free as long because the quantity of traffic changed isn't out of balance, providing substantial price savings for information measure for high-traffic sites and networks.

Michael Masnick from TechDirt is additionally skeptical of the notion that YouTube pays next to zilch for information measure. “I’m unsure i feel that either, however at the terribly least, it points out that there’s lots additional to contemplate here than merely extrapolating out the quantity of videos times the fundamental price of information measure,” Masnick writes.

Google doesn’t share numbers on its prices, however a recent web log item suggests that it’s not losing cash on its video infrastructure. ”The truth is that each one our infrastructure is constructed from scratch, which implies models that use normal trade rating square measure too high once it involves information measure and similar prices,” write YouTube’s Chris valley and Aaron Zamos. “We square measure at a degree wherever growth is unquestionably sensible for our bottom line, not bad.”
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