BBC boss: Internet TV would drive up broadband costs

A British broadcasting executive has dropped the other shoe: "Once we start seeing IPTV take off, we will see the cost of broadband decommoditizing."

BBC Director-General Mark Thompson, in making the comment at the Royal Television Society's international conference in London, was stating aloud what everyone has been whispering. To paraphrase, despite what over-the-top proponents believe, there is no such thing as a free lunch; cut the cable TV cord and you'll just end up paying more for the cable broadband cord.

Thompson suggested that ITV demand might lead some broadband providers to develop service tiers: one level for normal everyday broadband connectivity, another for optimized connectivity to receive enhanced over-the-net TV services.

For more:
- see this story

Related articles:
Mobile video, OTT services to vie for $2 billion market share
Apple TV, connected TVs create more cord-cutting worries for pay-TV operators
The free ride's about over for cable TV cord cutters

Suggested Articles

Increased internet speeds will outpace premises WiFi capabilities, category cables can deliver the high speed and low latency demanded by consumers.

After announcing a deal to integrate the Amazon Prime Video app earlier this year, Virgin Media said that service is now available to millions of its TV…

NCTA-The Internet and Television Association is pointing to a new report that shows the cable industry had a $450 billion impact on the U.S. economy in 2018.