Today's Hard|Forum Post
Today's Hard|Forum Post

Thursday June 21, 2012

Netflix Cutting Costs With New Content Delivery Network

Moving to its own content delivery network is one of the smartest things Netflix has done in a long time. Hell, anything the company can do to cut down on the massive cost of content delivery will help. eek!

Assuming an average bit rate of 2.33 Mbps, one hour of content would equate to 1.02 GB of data. Netflix probably pays the bargain basement price of 1.5 cents to deliver 1.0 GB of data. Using these numbers, if Netflix was streaming 1.0 billion hours of content a month they would be paying about $15.4 million a month in delivery fees or $184.2 million a year. If Netflix were delivering 1.0 billion hours of HD content a month at the maximum 5.18 Mbps rate, they would be paying $410.1 million a year in delivery costs.