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HD download rentals may add big hidden fees

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HD download rentals may add big hidden fees
Posted by Seán Byrne
Posted on 19/01/08 01:47
Number of views 1723
HD download rentals may add big hidden fees

Anyone who regularly rents movies from the local video store is well aware of the need to return them within a strict period to avoid paying late rental fees.  Now that there are several online movie rental services to choose from, it seems like one can finally avoid getting penalised.  Well, while this may be the case for the mail based online DVD rental services such as Netflix, Blockbuster and so on, consumers who rent downloadable movies may in for a nasty surprise once they receive their next bill from their Internet service provider.

Time Warner announced that it is going to start testing a new Internet usage policy in Beaumont that would limit how much traffic one can accumulate over a period before they start getting changed for excessive usage.  While they are still looking into what to charge, their spokesman Mr. Dudley said that they will probably be offering packages of between 5GB and 40GB per month, with the top plan being roughly the same price as its highest-speed service, which is around $50 to $60 per month.  Other cable operators may also follow Time Warner's move later on.

What some consumers may not realise is that just because a HD rental may have a price tag of $4.99, does not mean that there are no other charges, at least until they get their next ISP bill.  For example, Bell Canada charges up to C$7.50 per GB when a customer exceedsits monthly transfer allowance on one of its Internet packages, which means that if one of these customers has already gone over its quota and then rents a HD title, they may end up paying $30 for excessive usage, based on a 4GB HD movie download.  As a result, the user would have been far better off purchasing the movie.

According to Mr. Dudley, half of its total bandwidth is consumed by just 5% of its customers, so these bandwidth limits will be intended to crack down on these heavy downloader’s.  Apparently they are scared about the growing number of consumers turning to downloading and streaming movies online instead of traditionally watching these on DVD and on cable.  However, while these excessive usage charges will effectively penalise consumers who rent a lot of downloadable movies each month, according to Mr. Dudley, these limits are actually aimed at people who use file sharing networks, especially those who download terabytes of data. 





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It's simple: people will switch to ISPs that don't s*ck hairy assses.
Yes, unless....all ISP's start to implement this policy...
This would, of course, effectively kill the entire download business. And to some extent, any benefit of having cable internet to begin with.
I think this is a fair idea. It is truth that some heavy downloaders utilise bandwidth more than needed. Besides, ISPs could allow certain sites free access, or a different limit, so that movie rental services might be unaffected.

Why everyone so greedy? It is easy to manage one's own downloads. I know people with only 10gb per month that pick and choose what to download, and they always manage, even with some downloads over 1gb!
http://www.savetheinternet.com/


That is what will happen. We have to save the internet.
This "can't download more than 40GB" is a load of bollocks.

Internet is already expensive as it is. The only way I'm accepting people telling me how much I can or can't download using my "unlimited" service is when the service is free. If I'm paying, and I pay for "unlimited", I want unlimited.

If they have been offering packages based on speed, claiming "unlimited", the tough luck for them, but they better deliver on their promise or get sued.
Sony's problem is that the PS2 is still selling like pancakes. This is the "Wii factor" -- not all buyers go for the best, but choose a budget offer and like this new wave of "social games" (Guitar Hero, Buzz, Singstar).

"The PSP sold 1.4 million in the region, the Playstation 2 sold 1.3 million and the Playstation 3 sold 1.2 million units during the period between Nov. 23 to Dec. 3, bringing combined sales to a total of 3.9 million."
http://gaming.hexus.net/content/item.php?item=11001

So it is not actually a bad season for Sony, but they do have some portfolio management issues.
^^^^^^ LoL wHuT?
Of course watch the same movie provided by your cable company via video on demand, this doesn't count against your bandwidth allotment. Cable companies also have big incentives to make services like Vonage work poorly compared to their own VoIP solution.
$7/GB is absolutely ridiculous! And 4GB is 1/2 the size of a DVD. A good quality HD movie is going to be 25/GB. Rent two movies and you've already gone over the allotted bandwidth.

The top 5% of TWC's users may be using a lot of bandwidth with bittorrent, but the legal internet video rental industry is-a-coming...
The naysayers had their day when Comca$t disappointed investors, but cable is still a bulletproof business.
$7 a GB is to much! in Australia you can get charged up to $0.15 per MB from the biggest ISP in the country (bigpond) and the biggest plan is 60GB. I don't know of any truly unlimited plans from any isp here.
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