This isn't really true. Netflix, for example, strongarms ISPs into colocating their boxes for free, which bring massive amounts of their data closer to consumers, and guarantees them some of the best performance on the Internet.
If ISPs were able to charge for this (they want to), Netflix would have to pay a lot more for this sort of premium placement, giving smaller players much more room to compete financially. (i.e., if Netflix's cost to provide this best-in-class service they currently get for free is much higher, either it's more financially viable for small companies to pay for the same service, or they'll be able to offer video on demand cheaper than Netflix does)
> If ISPs were able to charge for this (they want to), Netflix would have to pay a lot more for this sort of premium placement, giving smaller players much more room to compete financially.
This sounds like you're claiming that greater barriers to entry make it easier for smaller firms. In economics I think the opposite is generally accepted as true.
> If ISPs were able to charge for this (they want to), Netflix would have to pay a lot more for this sort of premium placement, giving smaller players much more room to compete financially.
We've already seen that ISPs will abuse peering to charge for non-premium placement. And they'll charge that to smaller players too. So the end result is that Netflix will still get colocated, while smaller players are even worse off because they're paying extra for peering.
Can you provide a citation for this? Curious to see what kinds of arrangements they made.
What’s to say that Netflix won’t strongarm ISPs after the NN repeal? No ISP wants to be the ISP that doesn’t have good Netflix support anymore, given their popularity and clout.
I don't think the debate is over whether to allow Netflix to survive, Netflix will be OK and has a good bargaining position with regard to ISPs because they have content everyone wants. The more interesting question is are we creating a system that allows independent bloggers, vloggers, and other content creators to get discovered and be compensated either through ads or subscriptions or some other model.
If ISPs were able to charge for this (they want to), Netflix would have to pay a lot more for this sort of premium placement, giving smaller players much more room to compete financially. (i.e., if Netflix's cost to provide this best-in-class service they currently get for free is much higher, either it's more financially viable for small companies to pay for the same service, or they'll be able to offer video on demand cheaper than Netflix does)