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by loganu 3935 days ago
[ISPs] have moved beyond just delivering a internet connection to delivering "triple play" (net, cable/streaming, voip).

I thought this bundling was more to protect their profit margins. In Canada, for example, Telus has cable, internet, cellphone, house phone products available. For every product line you purchase, there's a discount. When they charge data overage fees on cell phones and internet plans, they make huge money, and subsidize the cost of running other product lines which help their lock-in effect. (Sorry for the poor wording)

2 comments

I think part of it is that they can charge content owners/distributors (cable networks) more money with higher subscriber numbers. It's why I can pay $69/mo for 100/10 internet service from Comcast but for $99/mo I get 80 channels of cable plus HBO on top of internet service. If I were to buy only cable TV, that same package would not cost just $40/mo but they'd rather have me boosting their cable sub numbers than just paying them for a data pipe so they heavily discount the price.
It is, but it also makes them beholden to the content distributors. The last thing they want is to be delayed in offering the latest blockbuster or hotly debated drama.