Heavy movie streaming users of services like Netflix will soon find that their unlimited offer is just about to end with more and more Internet service providers deciding to enforce new broadband caps as a part of their paid package plans. Once the new data usage limits are enforced subscribers will only be able to download a specific number of gigabytes of data on movies, songs and other online content for every month.
Mediacom is the latest Internet service provider to join the status-quo for broadband caps as the company announced extra charges for customers exceeding the 250 gigabyte allocation in a 30 day billing period. According to Mediacom officials the new rate changes will impact on about 3% of its subscribers. However, industry experts believe that an exponential growth in Internet data usage will ultimately have an impact on a broader number of customers.
Doug Jacobson, a university professor from Iowa State said, ‘the growth in streaming services is now the next hot thing on Internet. We are really looking at systems that were designed about ten to twenty years back. However, demand on Internet and raw volume of individuals have since dramatically increased and so has their usage’.
This issue has today created high competition among the cable industry, cell phone service providers and others causing them to hand out unlimited data plans. Many consumers are of the view that broadband caps are a sort of punishment for those who heavily watch television shows and movies online. Mediacom is Iowa State’s biggest cable provider. Tej Dhawan a customer of Mediacom said, ‘it just does not make any sense to tick off 100% of a customer base through the implementation of these caps and to make people worry. These companies have grown because people saw the value of data they received. Now I think the companies are getting greedier as people start seeing less value in their cable services’.