Article: Not so dumb pipes (The Deal Magazine)
This is becoming a key issue: the OTT world versus the cable guys...?
Not so dumb pipes (The Deal Magazine)
http://www.thedeal.com/magazine/ID/040214/2011/not-so-dumb-pipes.php
But this isn’t the only pricing dispute Netflix faces. The Los Gatos, Calif., company is a vocal party in another debate with far-reaching consequences, pitting companies that sell content online against the cable and telecom operators that provide and maintain the infrastructure. AT&T Inc. and some other broadband providers have begun to charge Internet subscribers based on how many gigabytes of data they consume, a change in pricing that has profound implications for Netflix, Pandora Media Inc. and other companies that make their money by moving content over the Internet.Metering broadband service is a cousin to the perennially divisive issue of net neutrality, or the precept that network operators should not discriminate between certain content traveling over the Internet. So far, the Federal Communications Commission has signaled its openness to the new pricing models.
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