That would increase the average royalty rate, as paid subscribers bring in substantially more money than free users.
Except that the second paragraph you wrote above actually disproves this. Rhapsody doesn't have free users, and brings in less money than Spotify. Looks like free users DO bring in more money.
It looks to me like they're trying too hard to make sure they don't accidentally prevent providers from giving different speeds available for different prices. Like we currently have now, paying more/month for a faster connection (which is fine). But they need to craft it so that it is impossible to pay more/month to degrade others' connections (which isn't fine).
The problem comes with the technicalities of how (cable) broadband connections work... They use an algorithm to split up the max bandwidth among those who are subscribed, with each person getting a piece of the bandwidth, according to how much they're paying. And it's those final six words that give people fits...
I suspect we may find some inspiration from the banking system, as the algorithm used in connections is used in banking. (A bank doesn't have ALL of the money deposited in it, in cash form, at ALL times. Similarly, an ISP doesn't have ALL of the bandwidth being purchased from it available at ALL times.) With a bank, I'm not sure, but my guess is the FDIC insures them in case everyone decides they want their cash money NOW. We might need something similar in case everyone on an ISP decides they want to use ALL of their purchased bandwidth at the same time.
But yeah, they have to be careful writing those rules, because 'cannot degrade someone else's connection' is actually happening now, and is a legit reason for a slowdown: The infrastructure simply doesn't support it. (I'm not saying this is the only reason for slow connections, just that this is a legitimate reason that could accidentally become against the rules.)
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(Joke shamelessly stolen from timeless movie.)
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Re: Spotify
Except that the second paragraph you wrote above actually disproves this. Rhapsody doesn't have free users, and brings in less money than Spotify. Looks like free users DO bring in more money.
Just not by themselves. ;)
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Re: Re: Re:
Then I gave it a Funny.
On the post: FCC Tests The Waters On A 'Hybrid' Net Neutrality Solution That Almost Everyone Hates
The problem comes with the technicalities of how (cable) broadband connections work... They use an algorithm to split up the max bandwidth among those who are subscribed, with each person getting a piece of the bandwidth, according to how much they're paying. And it's those final six words that give people fits...
I suspect we may find some inspiration from the banking system, as the algorithm used in connections is used in banking. (A bank doesn't have ALL of the money deposited in it, in cash form, at ALL times. Similarly, an ISP doesn't have ALL of the bandwidth being purchased from it available at ALL times.) With a bank, I'm not sure, but my guess is the FDIC insures them in case everyone decides they want their cash money NOW. We might need something similar in case everyone on an ISP decides they want to use ALL of their purchased bandwidth at the same time.
But yeah, they have to be careful writing those rules, because 'cannot degrade someone else's connection' is actually happening now, and is a legit reason for a slowdown: The infrastructure simply doesn't support it. (I'm not saying this is the only reason for slow connections, just that this is a legitimate reason that could accidentally become against the rules.)
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