Will Limited Bandwidth Capacity Raise The Costs of Streaming?
The news last week was about the sharp rise in Netflix fees. What was $7.99 a month for DVDs and streaming is about to double to $15.99. But, cautions The Wall Street Journal, Netflix and its competitors are apt to raise consumer costs well beyond simple fee hikes.
That's because Netflix, Amazon and others, according to a piece in the Journal, "are promoting services like music and video streaming that encourage consumers to gobble up bandwidth." And this in turn is leading to "consumption-based pricing for 'fixed broadband,' landlines that provide Internet access for consumers in their homes, either via a cable or a home Wi-Fi network." In short, those who stream and download bandwidth-hogging music and video will have to pay more — if they aren't already doing so.
AT&T defended the use of consumption-based pricing, saying "that the continued need to invest capital in network upgrades crucial to handling that increased bandwidth necessitates that kind of pricing model."
Regardless of pricing structure, though, companies will have to continue adding capacity to be able to give users the streaming they are increasingly demanding — at affordable prices.
The Time Bomb in Netflix's Streaming Strategy (Wall Street Journal)
CWA members oppose AT&T’s attempts to stop serving rural and low-income communities in California
CWA urges FCC to deny industry attempts to loosen pole attachment standards
CWA District 6 reaches agreement with AT&T Mobility