Sometimes it's necessary to recognize there is an elephant in the room. Few do this better than Karl Bode of Broadband Reports, who has recently shone a naked spotlight on the "relentless drum beat" by service providers to initiate low cap, high per-gig pricing similar to what's being done by our neighbors in Canada.
This would, Bode suggests, have an immediate and punishing impact on a seemingly oblivious Netflix (Nasdaq: NFLX), which plans to make its living via what Level 3 Communications (Nasdaq: LVLT) is now calling the "visual Internet."
"Given that Netflix HD streaming potentially eats bandwidth like popcorn shrimp and Canadian ISPs like Cogeco and Rogers (NYSE: RCI) currently charge up to $5 per extra gigabyte of usage, it seems inevitable that Netflix users and low caps won't get along as usage ramps up," Bode wrote.
- see this blog
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