ISPs Looking to Hike Internet Price; Video Streaming Services Up Against Cable

Video streaming services like Hulu and Netflix had taken over from cable operators to satisfy users’ viewing needs. And people were satisfied, but that satisfaction is in for a bit of shock.

Users are going to be drenched in higher prices, and by higher prices, we don’t mean that Hulu or Netflix is going to drain your wallet.

It’s your internet connection that would be choking you. A study has reported that major US ISPs are conducting experiments on usage-based internet fees.

These major ISPs include Time Warner Cable, Charter, Cox and AT&T. They are looking to put a block on user’s expanding broadband needs as well as make these streaming services like Netflix less attractive.

This is a plot to bring in the old cable back into the living rooms! If you haven’t forgotten, a major share of the large ISPs sells digital TV services as well.

A study by Bloomberg has revealed that companies like Time Warner are losing out their customers to dish-based services and streaming services on a quarterly basis. The cable companies control the internet tubes, so by raising the internet prices, they are looking to earn their lost dues.

Streaming services need a large amount of bandwidth to operate, and if the internet usage prices are high up, the companies figure that users would jump back over to the good old cable ways. Moreover, these usage fees are looked upon as extra revenue for ISPs.

Traditional cable services are losing growth momentum and gaining high costs, so the cash flow from usage fees would be able to equalize that. Looks like cable is going to make a comeback!