Cable Company Picks Out Nice Plot of Land, Starts Digging Its Own Grave

No sooner do I write about possibly ditching cable television for good in favor of getting content online, does a cable company come out and make me question if I soon won’t have to quit getting the Internet via that route as well.

Apparently the cable companies are both greedy and stupid. Two traits I really admire in a company. I guess they want none of my money.

I don’t have Time Warner cable, but if I did, this news that they are testing out metered Internet would really piss me off. It’s exactly what it sounds like, you pay your base rate and for that you get to use the Internet up to a certain point, after which you are charged by the gigabyte.

Remember back in the day on AOL when they used to charge when you went over your alloted minutes? Eventually they had to go unlimited because the market demanded it. Part of that was actually the cable companies and their always-on, unlimited cable modems. This pretty much ruined AOL as a service.

Now those same cable companies are going the opposite way. And guess what is going to happen? Something else, be it WiMAX or super-fast 3G or 4G connections are going to come along and blow them out of the water. They don’t realize it yet, but if they actually go ahead with this plan, they are already dead.

  • gregory
    by now we should know that all companies have a beginning a middle, and an end


    small, agile, and revolutionary becomes ossified, sterile, stuck



    really, it is just like the life of a person



    it is completely pointless to try make them change, that would be going against natural processes. same with detroit or microsoft or whatever.



    and if you know this, you can write about what is coming on, rather than what is leaving
  • MG Siegler
    @gregory - I actually think Time Warner will change their policy here once they see the backlash. If they don't, people will simply start using competitors.
  • I'm blackout
    I'm pretty sure that a very small percentage of customers out there will understand what this change means.


    Sure, the technical community will be outraged... the pirates will be outraged... the IT pros and heavy media users may be outraged... but the 90% of broadband users that don't know the difference between a cable modem and a router will continue using the service and not care. They won't care because they will rarely (if ever) hit the monthly limit.



    40GB/month is huge. That's over a gigabyte of transfer every day for a month.



    How can you be upset at a business for trying to segment its customer base? There are clearly people who would be willing to pay for a premium service or switch their business elsewhere... I think the cable companies would be fine with losing these customers.



    The interesting thing will be how this affects the viability of digital distribution channels going forward. Now if you pay $2-$5 to rent an HD movie... downloading it could cost you an additional dollar.
  • MG Siegler
    @blackout - yeah the high-level service at the ridiculous $55-a-month has a 40 gig cap, the regular one has a 5 gig cap which is preposterous.


    sure, right this second it will be okay for maybe the average to low-end users, but as you suggest, when digital distribution comes into its own, people will blow by this in a a few days -- if not sooner.



    just think about renting/buying a movie over itunes or xbox live, you could get three to four a month and would be hard-pressed to do much else on the Internet.



    we saw AOL go the opposite way, we're now seeing mobile companies go the opposite way (with unlimited plans), going against the tide will fail for the cable companies if they really are dumb enough to try it beyond this test.
  • gregory
    another time-warner silliness via kottke


    http://www.kottke.org/08/06/tbs-and-their-annoying-interstitial-commericials
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