Streaming TV and Movies

Now that Netflix has moved into Canada, there is more attention being given to the prospect of consumers cutting their cord with their cable companies. Already some have done so, usually those who are more technology competent, because a lot of the content they watch on TV is available online. Sometimes it is streamed live and other times it is archived. The idea of cutting out the cost of cable, with its hundreds of channels you never watch, has a lot of appeal.

There's a thorn in the rosebush, however, and that is bandwidth capacity. Streaming video is very heavy on bandwidth, with reportedly an hour of streaming consuming as much as 2.6 Gigabytes. Most internet contracts in Canada establish limits on internet use by charging for download of data over certain amounts. For example, a common basic plan in Canada will have a ceiling of 10 gbs, after which the consumer is charged $2.50 per gb for additional downloads. This could cost more than $5.00 per hour, which is a charge that could add up to something significant. More expensive plans have limits of 40 or 60 gigs per month, which eases the burden somewhat, but may not be enough for many.

That means the initial cost saving from cutting the cable could be more than offset by increased bandwidth charges.

One gets the sense that there is a place for streaming video in our future, but not on the basis of it costing more than we already pay for existing services, which are, after all, pretty good in terms of quality. Our approach to use of the internet vs other means will continue to evolve, including the business models of the providers.

For one take on the cable cutting prospect, check out this article.