Re:Verizon Throttles Netflix Subscribers in Test It Doesn't ...
by vertex-four on Tuesday July 25, 2017 @06:56AM
(#14846717)
This isn't a thing that's unique to digital content - it's a common business arrangement for some company to be allowed to be a sole distributor for a product in a market. It reduces risk for the distributor, meaning that they're able to give the product manufacturer a bigger cut.
Why so? It only happens in unhealthy monopolized markets. In healthy competitive markets, content providers should be independent from distributors. They create something (films for instance) and distribute them as widely as possible (i.e. through all distributors), to maximize reach and in turn profit. That would include global unrestricted distribution. But when market is monopolized and there are cartels, all that becomes totally messed up and restrictions pop up all over the place.