You're also not considering the power law distribution. If nineteen customers have 1Mbps uploads and one has symmetric gigabit, the average is >50Mbps. And the discount could be per-byte -- set it at half whatever the cost of central servers would be.
Put on your product hat: as Netflix, you want to control every aspect of the experience to ensure its absolutely seamless. When you outsource distribution to a huge set of third parties that becomes much harder to achieve.
Connections that are known to be slow can seed just the ends of files with faster customers seeding the entire file.
I imagine the maths on this has been done and the cost of bandwidth is much lower than the cost of engineering the solution though.
It's entertaining to expand the idea beyond bandwidth...what about CPU/gpu time on my powerful consumer desktop sitting idle/off all day? Or storage space? The computer would need to be on to seed... Would people pay to also use the idle compute capacity?
Security is a problem, but it could be used to segment customers and providers. (Big corporations bidding for AWS capacity, tiny personal sites hosted on a CDN of cheap consumer hardware).
Tagline it "Uber for the cloud"!
[1]: https://filecoin.io [2]: https://golem.network
not really, because have to pay for the electricity costs of leaving your computer on 24/7. assuming a modest 50W power consumption for a PC, that works out to 36KWh per month, or $3.6 at 10 cents /Kwh. That alone wipes away your $1/month you're saving. also, that's a third of the monthly plan cost, how much of a discount can netflix really offer here?
as for hard disk space, I'll grant it's "free" space (as in the consumer wasn't going to use it anyways), but running consumer drives 24/7 with frequent seeks can't be good for them.
https://ees.lbl.gov/sites/all/files/computers_lbnl_report_v4.pdf
I wouldn't have guessed.Yes, it depends on country. But I also suspect the total upload bandwidth for typical users in typical locations simply isn't there to make the idea work at scale.
(all numbers are hypothetical)