Tuesday, August 06, 2013
Broadband-only plans become popular, may deliver enough streaming video to replace cable in many areas
Various media sources are reporting that telecommunications providers are selling broadband-only packages more often in some areas (especially California) and encounter younger customers who prefer that. A typical story on FierceCable (related to Fierce Markets?) is here.
A basic package a just 1 mbps typically costs around $20. But meaningful video experience (movies and major TV episodes) probably needs 30-50 mbps, which could run up to $75 or so for the best service. Still, it is cheaper than full cable and smartphone and everything now.
Data-only plans seem to offer higher profit margins. Is the old cable TV model (known since the 1970s) in trouble.