Good/bad news for Hollywood: No Internet consumption pricing yet.
After a brutal push back from many active Web users and questions from politicians like New York Sen. Chuch Schumer, Time Warner Cable has decided to "shelve" its trial of consumption based broadband Internet pricing, where those who use more bandwidth pay more instead of getting unlimited Internet content for a flat fee.
To a certain extent, that's good news for big media companies. After all the content that eats up the most bandwidth comes from studios, networks, labels, and game publishers -- TV shows streaming on Hulu, movies downloaded from iTunes, music on last.fm, games played or downloaded via Steam and Xbox Live. Bandwidth charges could have put a real crimp in their efforts to build online business models.
On the other hand, those models aren't building smoothly so far, particularly for TV networks, which have seen, to quote Jeff Zucker, analog dollars replaced by digital dimes (in other words, the same shows streamed on the Web generates a fraction of the revenue as when it airs on TV). Many in Hollywood don't want to make it all too easy for their content to be distributed digitally. They'd rather see that happen slowly, giving them time to figure out new business models while preserving old revenue.
And of course the biggest bandwidth hogs probably aren't Hulu or iTunes or Xbox Live: They're bittorrent applications, aka piracy. People who engage in piracy are usually looking to save a few bucks. If downloading a bunch of movies or TV shows moves them into a new pricing tier for Internet access, some would-be pirates might think again.







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