Practical Technology

for practical people.

Netflix and the Internet bandwidth dilemma


I get it. You’re ticked off at Netflix for raising its prices for online video streaming. I understand perfectly. I recently dropped my cable TV service for a combination of Internet TV services-Netflix, Hulu Plus, and Amazon Instant Video–my own iTunes-based video server, and over-the-air (OTA) TV. Of all of them, I watch Netflix the most. I’m not happy about paying more. I also don’t think I have much of a choice in the matter.

You see, Netflix didn’t have much of a choice in raising its prices. Just like the recording industry before it, video content owners are having a heck of a time shifting over from their old selling and broadcast models to Internet savvy business models. So Netflix knowing darn well that the price it was paying for the right to stream videos made a per-emptive move to raise its rates. Yes, they’ll lose some customers, but they’re betting they’ll still have a good revenue stream. They’re going to need that revenue just to keep their video streams flowing.

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