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Bandwidth intensive sites are considering throttling down the amount of content delivered to developing countries where online "...ad rates are ridiculously low" and "renowned brands struggle to turn even a tiny profit." The chief executive of Joost goes so far as to proclaim that if web companies "...really want to make money, they would shut off all those countries."
70% of Facebook's users live outside of the United States, many in countries that do not contribute to it's profitability. Underlining the urgency of the cost of expanding internationally, Facebook's Chief Financial Officer Gideon Yu bolted from Facebook because he reportedley objected to the company's profitability projections.
Three people familiar with the internal maneuverings at Facebook said Mr. Yu objected to such a rosy projection as the company was struggling to finance its expensive global growth.
The issue of bandwidth is critical to social networking and user generated content sites that deliver vast amounts of bandwidth intensive files and struggle to make a profit in the face of escalating bandwidth costs. Large sites like MySpace are testing "a stripped-down version of the site that is less expensive to display because it requires less bandwidth...".
The bottom line appears to be that, "from the business side of things, serving videos to the entire world is just not supportable at this time."
[edited by: The_Shower_Scene at 9:29 am (utc) on April 27, 2009]
This is nothing new because many people in the Spider Forum already block entire countries for a myriad of options that include bandwidth theft, scraping, spam, fraud CC charges and many other things that are harmful to the site, server resources, bandwidth and last but not least the WEBMASTER's resources.
In the brick and mortar world the same thing happens when businesses start putting bars on the windows and finally move to a safer neighborhood when the problems exceed the rewards from doing business in that location.
I'm not at all saying you shouldn't do it (as a matter of fact, we do it, for reasons Bill mentioned), but traffic costs have never been the issue over here.
if they're living off base, they'd probably use local providers, but on base, like, can you have a local dsl-provider run cables on base? I personally doubt that, since there would be too many security problems and international borders & agreements to consider. Never really thought about that. Is there anyone that knows how soldiers get online when stationed (on temporary or long-term bases, say, iraq and germany) abroad?
Is there anyone that knows how soldiers get online when stationed (on temporary or long-term bases, say, iraq and germany) abroad?
[edited by: LifeinAsia at 11:51 pm (utc) on April 27, 2009]