Google/YouTube also try and deliver as much content as possible through peering exchanges and also host edge servers within ISPs in order to reduce bandwidth costs and improve performance. Beneficial for both them and the ISP.

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Yep! Very costly if not heavily monetized 🐶🐾🫡

Netflix also does much the same thing and has servers hosted within ISPs for video streaming and so does Akamai who provide the CDN for many other sites.