Is YouTube traffic free? Welcome to the New Internet

    Credit Suisse analysts hit the headlines a couple of months ago when they posted their YouTube cost estimate. In their opinion, Google spends $ 2 million per day on the content of this service , including traffic costs of $ 1 million per day. The assessment was made based on the minimum tariffs for renting channels, taking into account the 50% discount that Google should receive due to the large volumes. It was immediately clear that the methodology looked rather dubious, but we had no other opinions. Now it is. And it immediately became clear that Credit Suisse’s assessment could be completely wrong.

    As the new data show, YouTube traffic bills are most likely close to zero due to peer-to-peer agreements with providers and their own “black fiber” (dark fiber - unused trunk channels that Google has been quietly buying up for many years in the US and abroad ; the information is strictly classified, as well as information about Google data centers).

    So, does Google pay anything despite the fact that YouTube uploads a billion videos a day and generates 10% of all traffic on the Internet? If so, then it remains to be noted: we are entering the era of the New Internet, where different game rules and new business models apply, writes Wired.

    Arbor Networks authoritative analysts rated it in a commentary on their 2009 Internet Observatory Report study , conducted in collaboration with Merit Network and the University of Michigan. The full version of the document was presented yesterday at the NANOG47 Network Engineering Conference (presentation from the conference, PDF file ).

    Internet Observatory Report 2009 is unlikely to be published in the public domain, and a case study by Google, including the comment of analysts on YouTube, is known to us only thanks to information obtained by Wired journalists. But its reliability, as well as the professional competence of Arbor Networks specialists is hardly worth doubting.

    Statistics for the Internet Observatory Report were collected for two years, this is the largest study of the traffic structure in the history of the World Wide Web. Among the authors are serious scientists with many years of experience. Arbor Networks sells traffic monitoring equipment that is installed at 70% of US Internet service providers. That is, these guys understand the issue like no other.

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