Update (4/16/09): Looks like TWC is shelving the tiered pricing! Check it out:
You probably have heard of the ridiculous bandwidth caps that Time Warner is testing. Their plan: $54.95/month for 40GB of data per month! This seems to be both upstream and downstream data combined. Why might they be doing this?
From their financial statement:
“Technological advancements, such as video on demand, new video formats and Internet streaming and downloading, have increased the number of media and entertainment choices available to consumers and intensified the challenges posed by audience fragmentation. The increasing number of choices available to audiences could negatively impact not only consumer demand for the Company’s products and services, but also advertisers’ willingness to purchase advertising from the Company’s businesses. If the Company does not respond appropriately to further increases in the leisure and entertainment choices available to consumers, the Company’s competitive position could deteriorate, and its financial results could suffer.”
Hulu.com, a web site that allows you to watch TV programs online, is also specifically mentioned:
TWC’s video services face competition from a number of different sources, including companies that deliver movies, television shows and other video programming over broadband Internet connections, such as Hulu.com, as well as online order services with mail delivery, and video stores and home video services. Increasingly, content owners are using Internet-based delivery of content directly to consumers, often without charging a fee for access to the content. Furthermore, due to consumer electronics innovations, consumers will over time be more readily able to watch such Internet-delivered content on television sets.
So basically to drown out the competition to your video services: just make it really expense to use them!
Keep tabs on the ordeal at:
P.S. Verzion FIOS not coming to Wisconsin anytime soon
P.S.S. Time Warner rep did not get back to me on what, if any changes, there will be for Business Class RoadRunner which I use.
– Soli Deo Gloria