Two questions:
1: How will media companies survive when content is free?
2: If I want fast internet-but only on the weekends- do i splurge for a 6 mbps data package or settle for 1 mbps?
What if Media companies should partner with ISPs to charge you per high res instant download. What if basic internet was free, but you could pay 50 cents to get an HD TV show instantly by spontaneously bumping up your bandwidth.
People care about high res media, but they care more about getting it NOW. They would rather youtube it than wait for the high-res version. And buying the full premium internet package is too expensive for many people who arent home most of the time anyway.
When you buy internet at a certain speed, it’s an artificial pipeline limit that the ISP imposes on you. The ISP has a real upper limit on their overall bandwidth because they operate at capacity: They have to keep the average usage down below their total capacity devided by the number of users. But any given user has a physical pipeline with the potential to function at the highest speed. In other words, when you upgrade to the max speed, the ISP doesnt add any pipelines, they just take away their speed limit on your account.
This is a big untapped market – it isn’t being done now, because ISPs don’t want to hurt their subscriptions of premium high speed internet packages. But when media goes to free, and data bandwidth follows close behind, it will make sense for media companies to try something like this. It’s not just about content anymore, it’s about being the fastest and easist path to that content. In order to survive, media content companies need to start partnering with content providers. If they can’t regulate the websites that are dishing it out, why not try regulating the bandwidth?
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