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espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

Internet video is going to start taming itself

There are already discussions about Hulu charging to view content as media companies are coming to the same realization that newspapers have -- it costs money to develop content, and you can't keep funding that development when you simply give the content away online for free.

Of course, engadgetHD recently conducted a poll that found over 75% of people would be unwilling to pay any amount of money to watch Hulu content. So much for mixed messages -- it's content worthy of the time of millions of viewers.... until you want to charge anything for it, then it's worthless.

I guess piracy would still be an option, if the show somehow finds a way to generate enough ad revenue through other outlets to continue being produced.


IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

Paid, Free, or Pirated... It doesn't matter if there's a 250GB Cap to deal with.



espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

said by IPPlanMan:

Paid, Free, or Pirated... It doesn't matter if there's a 250GB Cap to deal with.
The caps aren't a problem for occasional online viewing.

The "Cut the Cord" model has bigger issues on the supply side well before any kind of cap would be an issue.


LV1099246

@cox.net

reply to espaeth
"it costs money to develop content, and you can't keep funding that development when you simply give the content away online for free."

Hulu doesn't make or develop content, unlike the newspapers and hollywood. They place ads to make money, if they can't make that work, they should give the content back to iTunes (oh I just remember not so long ago NBC dude pulling out of iTunes and then saying how sucessful hulu was going to be. Perhaps people are willing to pay for content - I mean most tv shows don't show up on itunes for a LONG time, why not put them there for a season and see if what happened to the "free music on the net" happens to the tv content. And I disagree with your second post, occasional viewing and the caps - no, never, not. This article is not about occasional viewing. Plain and simple, don't advertise unlimited, when there is a cap, and don't cap legal stuff. If they can't figure out how to do that, then there should not be a cap AT ALL.



IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

reply to espaeth

said by espaeth:

The caps aren't a problem for occasional online viewing.

The "Cut the Cord" model has bigger issues on the supply side well before any kind of cap would be an issue.
I'm not sure why you'd say that...
It's possible to go over your cap merely watching Hulu content right now.
--
"We're going to start at one end of (Fallujah), and we're not going to stop until we get to the other. If there's anybody left when that happens, we're going to turn around and we're going to go back and finish it."
Lt. Col. Pete Newell: 1st Inf. US Army


espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

reply to LV1099246

said by LV1099246 :

"it costs money to develop content, and you can't keep funding that development when you simply give the content away online for free."

Hulu doesn't make or develop content, unlike the newspapers and hollywood.
Hulu is run by the companies that produce the content:
Hulu is a joint venture of NBC Universal (GE) and Fox Entertainment Group (News Corp), with funding by Providence Equity Partners, which made a US$100 million equity investment and holds a 19% stake. ABC, Inc. (Disney) also owns a 27% stake in the venture.
said by LV1099246 :

Plain and simple, don't advertise unlimited, when there is a cap, and don't cap legal stuff. If they can't figure out how to do that, then there should not be a cap AT ALL.
Caps aren't about illegal vs legal uses of your connection -- it's a function of capacity. I do agree with others that caps are an imperfect solution to address that problem though. I also agree that advertising "unlimited" is misleading.


IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

1 edit

People simply aren't going to watch programs online, even "free ones" if they're going to go over the usage caps.

- A "free" program will still cost you money if you have to pay an overage fee (Think Cogeco). A "paid" program will simply cost you what you pay for the program, on top of the "overage" fee.

- People won't watch this stuff at all, paid or free, if going over their cap means that their service is terminated as a result. A warning, followed by another within six months means a one year suspension in the case of Comcast.
--
"We're going to start at one end of (Fallujah), and we're not going to stop until we get to the other. If there's anybody left when that happens, we're going to turn around and we're going to go back and finish it."
Lt. Col. Pete Newell: 1st Inf. US Army



S_engineer
Premium
join:2007-05-16
Chicago, IL

reply to IPPlanMan
What makes these carriers think people won't "cut the HSI cord" as costs surpass cable tv charges by 20% to 200% with overage charges depending on your carrier. And why oh why has there been NO intervention by the FCC?
Sadly, I think I already know the answer to the latter.
--
BF69~~~Please stop suffocating gerbils!



espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

reply to IPPlanMan

said by IPPlanMan:

People simply aren't going to watch programs online, even "free ones" if they're going to go over the usage caps.

- A "free" program will still cost you money if you have to pay an overage fee (Think Cogeco). A "paid" program will simply cost you what you pay for the program, on top of the "overage" fee.
People will have to weigh their options. I pay to rent from Netflix even though RedBox would be cheaper because I value the convenience of just having the movies delivered. There is a plethora of options to get access to the content.

said by IPPlanMan:

- People won't watch this stuff at all, paid or free, if going over their cap means that their service is terminated as a result. A warning, followed by another within six months means a one year suspension in the case of Comcast.
Considering you have to be one of the top 1000 customers, in terms of bandwidth utilization, to get that call, that means that the other 14.7 million people are safe.

That's like saying people won't speed on the freeway because of the risk of getting pulled over. The odds are even more in your favor with Comcast.


IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

reply to S_engineer
I think you'll see a web of consumer coercion happen...

You won't be able to get a "cheap" internet package anymore.

Want something without a 5GB cap from TW, you'll have to pay more, even if you don't want/need the speed.

Go over your cap? You need faster internet, that's the problem.
--
"We're going to start at one end of (Fallujah), and we're not going to stop until we get to the other. If there's anybody left when that happens, we're going to turn around and we're going to go back and finish it."
Lt. Col. Pete Newell: 1st Inf. US Army


wentlanc
You Can't Fix Dumb..

join:2003-07-30
Maineville, OH

reply to espaeth
If it is such a low percentage of people, then why not just penalize them individually. Why would you spend money to put a capping service in place if MOST people will not be affected by it?

It's sheer nonsense. They cannot go backwards and cut people off, but they sure can stop them in the forseeable future. It starts off as not affecting MOST users, and ends up screwing MOST users. But by then, it will just be accepted because that's how things have been. The sheep can be gently eased into the pen, right. Well some of us aren't so blinded by the plan, and are expressing our disagreement with it.

cw



badtrip
I heart the East Bay
Premium
join:2004-03-20
Albany, CA

reply to espaeth

said by espaeth:

There are already discussions about Hulu charging to view content as media companies are coming to the same realization that newspapers have -- it costs money to develop content, and you can't keep funding that development when you simply give the content away online for free.

Of course, engadgetHD recently conducted a poll that found over 75% of people would be unwilling to pay any amount of money to watch Hulu content. So much for mixed messages -- it's content worthy of the time of millions of viewers.... until you want to charge anything for it, then it's worthless.

I guess piracy would still be an option, if the show somehow finds a way to generate enough ad revenue through other outlets to continue being produced.
Hulu has ads, not many ads but they are there. Thus they are not giving away anything for free. 75% of folks won't pay for Hulu content (I know I wouldn't) because the exact same content can be watched for free via different (and legal) means.

Hulu should just add more commercials during their breaks. If they want to charge for content, they better remove all ads, have a more complete battery of shows they offer and charge no more than $0.05-$0.25 for unlimited viewing of an episode.

At this point, Hulu strikes me as more of a vehicle to drive DVD sales for popular shows or to get folks to tune into regular television to watch shows featured on Hulu...in effect Hulu is an advertisement itself.


espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

reply to wentlanc

said by wentlanc:

If it is such a low percentage of people, then why not just penalize them individually. Why would you spend money to put a capping service in place if MOST people will not be affected by it?
You can't penalize people for using "too much" capacity unless you define an amount that constitutes "too much."


MTBikerChris
Premium
join:2001-08-28
Broomfield, CO
Reviews:
·Comcast

reply to IPPlanMan

Click for full size
said by IPPlanMan:

Paid, Free, or Pirated... It doesn't matter if there's a 250GB Cap to deal with.
Dude just get over it if you go over 250 it's you fault. I do alot of watching TV and nextflix and download the summer tour of the Dave Matthews band all summer so far and i have not come near my 250 a month..This is since Jan 2 of 09 BTW.


espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

reply to badtrip

said by badtrip:

Hulu has ads, not many ads but they are there. Thus they are not giving away anything for free.
Indeed they have ads, but folks including the CFO of Netflix have argued that the current advertising does nothing more than slow the current rate of bleeding.

said by badtrip:

75% of folks won't pay for Hulu content (I know I wouldn't) because the exact same content can be watched for free via different (and legal) means.
Absolutely. With an antenna, an ATSC tuner, and a couple dirt cheap hard drives I get most of the content I want to watch in full 1080i resolution with 5.1 digital surround. For the most part with Hulu we're talking about shows that have already been digitally delivered to your home over public airwaves, satellite transmissions, MSO coax cables, or FTTH systems.

said by badtrip:

At this point, Hulu strikes me as more of a vehicle to drive DVD sales for popular shows or to get folks to tune into regular television to watch shows featured on Hulu...in effect Hulu is an advertisement itself.
Honestly, I believe that was the intention from the onset was to provide a collection of shows to get people interested in various series to drive interest in more TV viewership.

I see a lot of value in services like Hulu to have an archive of shows to be able to watch on demand. It's a great secondary distribution model -- the problems set in when people try to make it a primary distribution model.


IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

reply to MTBikerChris
It's clear to me that the less TV you watch and the more online content you stream/view, the more likely you are to hit the cap. I'm not sure why that's something that you're not getting.

Besides, you're just one person. Try that with 4-5 people on the same modem.

It's very easy to reach 250GB with roommates, housemates, children, etc.

I did the math in this post: »Re: Bandwidth Limits/Congestion Management - All discussion here

----
If the shoe fits?

You conveniently disregarded everything else I said in my other posts about "regular" use.... which are all affected and limited by the cap...

I consider online backups regular use...
I consider streaming video from other sources besides Comcast regular use....
I consider uploading photos/videos regular use....

These are regular uses ... but you don't think so.

And then factor in the people that share my connection with me... and it becomes an issue. I'm not the only one using my connection, so it's very easy to get to the cap.

Split a 250 GB cap between 2 people on the same modem and it's 125 GB/month per person... and you have to split that between uploads and downloads, so it's 62.5 GB download and 62.5 GB upload.

Let's split it among 3 people: 83.3333 GB per person per month... and now it's 41.6666 GB upload and 41.6666 download per person per month.

It's fair to make the split evenly between uploads and downloads because some people do online backups and other uploads of movies and photos, etc.

Shall I keep going? How about we split it among 4 or 5 people.... Wow... that looks like an actual family! 250 GB per month for the whole family, with all of them potentially interested in different iTunes/Netflix content! And the cap hasn't moved upwards since it was introduced back in October of last year.

Let's add some more things that are part of regular use... Software updates!
Sometimes Apple updates are a few hundred MB... Multiply by 3, 4, or 5 and now we're talking noticeable numbers towards the cap.

You can't take Comcast movies with you on the go, unlike the iTunes rentals/purchases which you can, either on a laptop or an iPod/iPhone. So that's a feature. That's a feature that some people are willing to pay for.

It's not that you're doing anything wrong. You just can't believe that anyone would want to do anything else... or more.
-----
--
"We're going to start at one end of (Fallujah), and we're not going to stop until we get to the other. If there's anybody left when that happens, we're going to turn around and we're going to go back and finish it."
Lt. Col. Pete Newell: 1st Inf. US Army



JoesphM

@rr.com

approval from:
dadkins See Profile

reply to IPPlanMan

said by IPPlanMan:

People simply aren't going to watch programs online, even "free ones" if they're going to go over the usage caps.
Do you realize how many movies you would need to watch to break a 250 GB cap?

People keep ranting like 250 GB is a low cap.... when something like 90% of internet users use less than 20 GB a month, less than 5% use more than 100 GB a month, and less than 1% use more than 250 GB.


dadkins
Can you do Blu?
Premium,MVM
join:2003-09-26
Hercules, CA
kudos:18

1 edit

reply to IPPlanMan
Yeah... and see what I responded with pal:

"Look friend, if your use exceeds the 250GB cap that is known and currently in place, there is only a few choices you can make...

Re-evaluate your use and reduce it to acceptable levels - regardless of user count.

Discontinue service and start looking for a new provider.

Get a second account at your house.

I consider staying within the Terms of Service that I agreed to as "regular use"

It doesn't matter what you consider fair or normal or regular.
What matters is abiding by the rules set forth by the network owner.

Hope you figure it out! "

--
Think outside the Fox... Opera



espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

reply to IPPlanMan

said by IPPlanMan:

It's clear to me that the less TV you watch and the more online content you stream/view, the more likely you are to hit the cap. I'm not sure why that's something that you're not getting.
That's one reason the "Cut the Cord" model breaks down in a hurry.

Look at all of the infrastructure that YouTube currently has to deliver 0-10 minute clips in "watchable" quality to roughly 80 million viewers. If you follow the same scaling architecture to support the replacement to replace 3-5 hours of TV viewing per day, the infrastructure becomes impossibly expensive to maintain.

said by IPPlanMan:

It's very easy to reach 250GB with roommates, housemates, children, etc.
Perhaps, but most people don't.

Numbers out of Japan, for instance, show averages below 40GB/mo and mode in the 3-4GB/mo range (depending how accurate the models are). »www.caida.org/workshops/wide/080···ffic.pdf

I run DRDB filesystem replication from my hosting servers to home for continuous backup purposes, and even with 180GB of replicated storage on top of my regular usage I rarely break 150GB/mo. That includes VPN use for work and my personal Internet use with it. (I have both a Comcast business account and a DSL business account)


IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
kudos:1

reply to JoesphM
See above... I did the math. Some people don't like how the math comes out, but don't blame me for that.


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