Many believe that the multi-billion dollar cable companies are trying to stifle internet TV services to prevent cord cutting and keep those big subscriber numbers up. Delusional fantasy? Well, maybe not as it seems that the Justice Department are actively looking at cable companies, and whether they are improperly trying to nobble online TV and video competition from companies such as Netflix,.
Are cable companies unfairly capping online TV?
The news reported by the Wall Street Journal says that US Justice deptartment officials have been talking to several web video suppliers such as Hulu and Netflix, and also have been questioning cable companies such as Time Warner and Comcast about data capping online TV ventures. These Data limits serve to dissuade customers from subscribing as they get hit with a second charge for downloaded data.
The cable companies have come out fighting though, claiming monthly useage caps are needed so that heavy data users (i.e. video viewers) do not overuse the broadband networks and slow them down for others.
However internet TV providers such as Netflix just see the practice as unfair. CEO of Netflix, Reed Hastings claimed that Comcast let their subscribers watch own-brand Xfinity streaming without eating into their monthly data cap, but rivals like Netflix, Hulu and HBO Go do. So Comcast give preferential treatment for their streaming and subscribers are not tempted to cut the cord.
The Journal who are quoted unnamed sources providing the info, say that the Justice Department will also look to see if Comcast?s data policy violates commitments that were made when it brought a majority stake in NBC Universal last year.
It does seem that the big boys are unfairly penalizing online services, but then would Turkey?s vote for Christmas? They will only stop when they are made to stop.
Hi everyone my name is Kelly from the UK. Please let me know what you think of my posts by leaving a comment (or 2)
Kelly
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