June 15th, 2008
The title of this blog entry is also the title of a piece
in today’s New York Times. The story
is most simply stated by quoting from part of the second paragraph: “three of
the country’s largest Internet service providers are threatening to clamp down
on their most active subscribers by placing monthly limits on their online
activity.â€Â
Time Warner Cable, Comcast and AT&T are all
experimenting with plans (read this as “about to implement said plansâ€Â) to
first of all offer tiered monthly pricing based on the amount of data that can
be downloaded, and supplement that with additional “per gigabyte†charges for
those who go beyond their contracted limit.
The Times
article reads as very sympathetic to these ISPs, with quotes like “all three
companies say that placing caps on broadband use will ensure fair access for
all users†and “the goal, says Mitch Bowling, a senior vice president at
Comcast, is ‘ensuring that a small number of users don’t impact the experience
for everyone else.’â€Â
But the actual strategy is obviously quite different
that what’s quoted in the article. Who are the heavy bandwidth users? People
who are fully engaged in video on the Web. Much of the video is coming out of
Hollywood and TV-land, and from sites like YouTube. These ISPs clearly just
want their “vig†(short for “vigorishâ€Â): bookmakers’ and gangsters’ slang for a
cut of the action. They make lots of money; why shouldn’t we (even though we’re
already are raking it in)?
As the article notes: “Even if the caps are far above the
average users’ consumption, their mere existence could cause users to reduce
their time online. Just ask people who carefully monitor their monthly
allotments of cellphone minutes and text messages.â€Â
This is bad news for the future of publishing. As
always, the greed of the companies panning for Internet gold remains limitless.