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[QUOTE="WickedOrange, post: 641746, member: 915"]
They don't need to start up or maintain a server farm. You go with a cloud solution. Netflix is using Amazon's Elastic Compute Cloud (EC2) and Simple Storage Service (S3). Netflix alone is over 33 percent of prime-time Internet traffic in the US.

I'm 40 and cut the cord over four years ago. My kids (5 and 3) will probably never know what traditional cable is. It will be a sad day in my household, if we are regularly consuming six concurrent video/video game streams.
 
I pay $55 for a broadband connection, $10 for netflix and augment with an antenna for OTA. I still have room for a la carte streaming services (I'm looking at you ACC/ESPN) and still be under $100.
 
Stonybrook was the only football game I had to leave the couch for, everything else, I could see from my livingroom.
 
I also think you're ignoring the gains being made in compression.
 
[url]https://brendaneich.com/2013/05/today-i-saw-the-future/[/url]
 
[I]ORBX.js, a downloadable HD codec written in JS and WebGL. The advantages are many. On the good-for-the-open-web side: no encumbered-format burden on web browsers, they are just IP-blind runtimes. Technical wins start with the ability to evolve and improve the codec over time, instead of taking ten years to specify and burn it into silicon.[/I]
 
[B][I]After these come more wins: 25% better compression than H.264 for competitive quality, adaptive bit-rate while streaming, integer and (soon) floating point coding, better color depth, better intra-frame coding, a more parallelizable design — the list goes on.[/I][/B]
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