FCC Urged to Investigate Broadband Caps

06.05.2011

· A recent study by The NPD Group shows that Netflix's share of streamed or downloaded digital movies was a whopping 61 percent between January and February 2011. Comcast was a distant second with 8 percent of the market, while Apple, DirecTV, and Time Warner, all tied for third at 4 percent.

· An October 2010 report by Canadian broadband equipment supplier Sandvine showed that Netflix streaming accounts for more than 20 percent of downstream traffic during peak hours, and is most active between 8 to 10 p.m.

· Netflix is growing like gangbusters, and its nearly 24 million subscribers are less likely to rent movies and TV shows from the cable and satellite providers' on-demand services.

Well, if you're AT&T and Comcast, what would you do? The ISPs are probably miffed that Netflix, as they see it, is getting a free ride on their networks.

The solution: Data caps with overage fees. Since a high-definition Netflix video stream uses about 2GB of data per hour, it's not hard for AT&T DSL subscribers who watch a lot of online movies and TV shows to hit the 150GB monthly cap.