This is getting pretty hysterical. With every bit of detail Time Warner gives out on its “tiered” pricing plans — debuting soon in Gboro — consumers scream louder.
TW likes to trot out all kinds of net metrics to show that absent these sorts of price-rationing mechanisms, the net will crawl to a halt in a few years. Let’s give that a qualified “perhaps” and explain what is really going on.
Streamed video.
That competes directly with TW’s CATV breadbasket. Now in theory TW could junk part/most of the bandwidth given over to delivering crappy CATV and use to it pipe net bits into homes. In fact, imagine all of the coax dedicated to bits rather than CATV. That dire capacity squeeze does not look so dire, does it?
But the ads and subs revenue, why they do not flow to TW and other content providers. Any wonder then we are moving to distribution system which places a premium on GBs of vid and entertainment not captured and monetized by TW and its partners?
