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Demand for Netflix Could Lead to Higher Cable Bills

2011-12-01 10:28 by
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Time Warner Cable and U.S. pay-TV companies are on the verge of instituting new fees for heavy users of their web-access services - fees that would help them profit from demand for services like Netflix and Hulu while mitigating those threats to traditional TV.

The move is being portrayed as an opportunity for cable and telco providers to create new packages that take into account this consumer thirst for bandwidth, or, a opportunity to move basic subscribers into higher premium tiers of broadband, where the margins for operators can be as much as 90%.

"As more video shifts to the Web, the cable operators will inevitably align their pricing models," Mr. Moffett, an analyst with Sanford C. Bernstein & Co. in New York said in an interview. "With the right usage-based pricing plan, they can embrace the transition instead of resisting it."

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  User Reviews/Comments:
by sava700 - 2011-12-01 16:46
Here we go again with ISP's thinking of ways to screw the customers with caps and pay per use broadband - going in the wrong direction if they do this. It must remain unlimited use per packages and the package prices shouldn't rise no more than 2% each year if that. Cable Companies can profit from internet if they increase speeds to keep up with rising prices while getting away from traditional TV packages and go to channel selection per customer instead. I only watch maybe 10 channels on all of my Dish sub scription so why should I have to pay the same as someone that watches all 100?
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