said by KrK:said by Core0000:I am really curious why all this metered billing on broadband has started up.
Three words: Video via Broadband.
It's beginning now... you can get streaming movies; so you no longer need Premium movie channels. Other services like Hulu are giving you regular TV shows.
So, soon, if nothing was done, you could turn off your Cable TV or pay TV service. (Even the Telco based Broadband providers are moving into the Pay TV market---- example, Verizon with FIOS TV and AT&T with U-Verse, for example.) So now all the big players in the US market have a vested interest in protecting PayTV revenue and blocking third party Internet sites from streaming video content.
So as the execs figured out that third party internet companies are threatening to force them to compete for their formerly captive audiences, and that people could Actually off their Pay TV services, you see the sudden rise of "We Must Have Metered Broadband" in order "To be fair"...
They know with low caps and high overage fees they can nip this competition in the bud. People won't be able to afford to download movies and TV via their broadband, now, so they'll have no choice but 1) Give up on TV altogether or just use OTA 2) turn back to pay TV options for video entertainment.
And the bonus is they can make even more profit on the overage charges.... So it's Win/Win/Win for them and Lose/Lose/Lose for the consumer.
This is the true reason and the only reason we've seen this massive, recent, hard push for caps and overage charges.
Sounds logical to me. Thanks for the reply.