Over-the-top (OTT) services reach users via the open Internet without dedicated infrastructures and have experienced enormous growth in recent years. Netflix, an OTT streaming provider, now accounts for more than one-third of peak U.S. downstream traffic and causes cord-cutting of traditional cable pay-TV services from incumbent Internet service providers (ISPs). However, the service quality of video streaming is still influenced by the last-mile Internet access providers, who do not have incentives to deploy enough capacity and want to charge OTT service providers (OSPs) for direct connection. Although Netflix has reached deals with ISPs such as Comcast and Verizon to improve service quality, their undisclosed agreements have raised concerns about net neutrality. In this article, we study the economics of the Netflix-Comcast type of deals and derive the conditions under which an OSP and an ISP would reach such a deal. We analyze the impact of a deal transaction on the revenue of providers, the utility of users and the social welfare. Based on these results, we further classify different policy regimes and draw regulatory implications that depend on the intensity of ex-post deal competition and the cost of the deal. Our results can help understand how existing deals were made, how future deals might emerge, and how regulators should respond to various market conditions and scenarios.

中文翻译：

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顶级服务提供商和互联网服务提供商之间的纷争：Netflix-Comcast交易类型的分析

OTT（OTT）服务通过不带专用基础结构的开放Internet到达用户，并且近年来发展迅速。Netflix是OTT流媒体提供商，目前占美国下游高峰流量的三分之一以上，并导致现有互联网服务提供商（ISP）切断了传统有线电视付费电视服务。但是，视频流的服务质量仍然受最后一英里的Internet访问提供商的影响，后者没有动力来部署足够的容量，并希望向OTT服务提供商（OSP）收费以进行直接连接。尽管Netflix已与Comcast和Verizon等ISP达成协议以提高服务质量，但未公开的协议引起了人们对网络中立性的担忧。在这篇文章中，我们研究了Netflix-Comcast类型交易的经济性，并得出OSP和ISP达成此类交易的条件。我们分析了交易对提供者的收入，用户的效用和社会福利的影响。根据这些结果，我们进一步对不同的政策制度进行分类，并根据事后交易竞争的激烈程度和交易成本得出监管含义。我们的结果可以帮助您了解如何进行现有交易，如何进行未来交易以及监管机构应如何应对各种市场条件和情况。我们进一步对不同的政策制度进行分类，并根据事后交易竞争的激烈程度和交易成本得出监管含义。我们的结果可以帮助您了解如何进行现有交易，如何进行未来交易以及监管机构应如何应对各种市场条件和情况。我们进一步对不同的政策制度进行分类，并根据事后交易竞争的激烈程度和交易成本得出监管含义。我们的结果可以帮助您了解如何进行现有交易，如何进行未来交易以及监管机构应如何应对各种市场条件和情况。