Skip to main content

Cable companies mulling a ‘Netflix tax’ for high data usage

netflix-factory
Image used with permission by copyright holder

According to a report from Bloomberg earlier today, Time Warner Cable, Cox Communications and Charter Communications was looking into usage-based fees based on the amount of bandwidth consumed rather than simply a flat rate for a specific transmission speed. This modification in pricing would impose extra monthly fees on consumers that consume larger amounts of bandwidth, likely due to watching high definition video on services like Netflix, Vudu and Hulu Plus. Charlie Ergen, chairman of Dish Network, estimates that a typical fee structure could cost consumers an additional $20 a month. If a consumer was only subscribed to Netflix, it would cost a total of $335 a year to access the video streaming service with that additional $20 surcharge figured into the total yearly price.

hulu-plus-tv-screen-image-hand-remoteIf any cable company decides to implement a usage-based fee structure in 2012, this would likely slow the number of people attempting to “cut the cord” and cancel cable subscriptions. This option has previously been attractive for consumers as a combined monthly subscription to Netflix and Hulu Plus costs approximately $16 a month. According to Sanford C. Bernstein & Co. analyst Craig Moffett, he expects that at least one cable company will shift to usage-based pricing within the next twelve months. Time Warner Cable spokesman Alex Dudley was quick to point out that customers that use a low amount of data like email and simple Web surfing could benefit from the usage-based structure and perhaps get a discount on broadband service.  

Since Netflix now consumes approximately a third of all Internet bandwidth in North America, cable companies are concerned about further growth of the streaming company as well as the rise of competitors like Amazon Prime. If Internet-based video consumption continues, analysts estimate that 12.5 million U.S. households will receive television programming and movies through Internet video rather than traditional services by 2015.  

Mike Flacy
By day, I'm the content and social media manager for High-Def Digest, Steve's Digicams and The CheckOut on Ben's Bargains…
How many devices can you watch Sling TV on at once?
Sling TV on an iPhone.

One of the coolest things about live-streaming video is that you’re almost never limited to just a single feed on a single device. But if you’re trying to figure out how many devices you can watch Sling TV on at once, the answer is “it depends.”

Sling TV is unlike its competitors in that it has a couple of base plans from which to choose—Sling Orange and Sling Blue. They have fewer channels (separately and combined) than you’d find on other options, but they also cost less. You then couple them with add-ons (called “Extras” in Sling world) to fill out your plan. And the number of devices on which you can simultaneously watch Sling TV depends on how you put your scheme together.

Read more
We tested them all — these are the best Sonos soundbars in 2024
Sonos Beam Gen 2 soundbar.

If you're shopping for a soundbar, you've probably stumbled upon Sonos. The company is responsible for many of the best soundbars of 2024, thanks to a combination of rich audio, time-tested reliability, and (fairly) reasonable prices. Sonos soundbars are great for home theaters, but they're just as capable of serving as a dedicated sound system for your favorite music, making them a hot commodity among all types of shoppers.

But which Sonos soundbar is the best? Many specs are shared across all devices in its lineup, which can make it difficult to figure out which is best for your needs. Should you opt for the expensive Sonos Arc? Or would you be better served by the affordable Sonos Ray? And what about the mid-range Beam – is it good enough to serve as the anchor of your home theater?

Read more
What is Sling Freestream?
Sling TV Freestream logo.

If you were to ask about the biggest trend in streaming video of late, chances are it’d be something called FAST. That’s short for free, ad-supported television. It’s everywhere. And if you’re looking to watch something without having to pay yet another monthly fee, it’s got you covered.

Sling TV has its own FAST service, called Sling Freestream. As the name implies, it’s free. In fact, you don’t even have to have a Sling TV account to watch.

Read more