&gt;See why ISPs don&#x27;t like Netflix?<p>No, because the $50 was almost entirely profit.  You would have to subtract a much smaller number.<p>Also bandwidth costs drop dramatically over time as we build better fiber endpoints.<p>And in the real world Netflix will connect directly to your network at a cost of $0.  They&#x27;ll come all the way into your datacenter for free.<p>Edit: Okay, you changed your post around a bit, let me respond to that.<p>&gt;Obviously the cost of bandwidth is a lot less than $50&#x2F;month. But even at 1&#x2F;10th that figure, it&#x27;s a big chunk of the variable expense of the service.<p>The ISPs offer different plans.  There&#x27;s usually a minimum plan that&#x27;s something like 1-2mbit.  Just to reach the tier where you are capable of pulling down 10mbps, you have to pay an extra chunk of money, and that covers the cost of equipment and domestic bandwidth all by itself.<p>If those minimum plans are sold below cost, that&#x27;s their problem, and they should stop gouging at the high end to make up for it.  If those minimum plans are not sold below cost, then something isn&#x27;t adding up.