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July 29, 2017
“(ISPs) want to keep pace with others in the market. It’s a tough balance. If you lower your price just because the competition’s prices are lower, then everyone is racing to get to the lowest price,” said Brett Sappington, the senior director of research at Parks Associates. “The companies are anxious about doing that.”
So instead of always reasonable, fixed rates for high-speed service — as those fortunate enough to have access to Google-owned Webpass can expect — we get something else entirely. The promotional rate. Or, in other words, a means for ISPs to preserve the price of service while still offering new customers an enticing discount.
From the article "Internet pricing 101: Why costs are all over the map" by Jennifer Van Grove.
Looking at the OTT market, Parks says that 60 percent of OTT video services require a subscription, and 64 percent of broadband-enabled U.S. households subscribe to an OTT video service (up from 59 pe...
That 50 percent figure gets a lot of play: In April 2015, Parks Associates reported that 50 percent of U.S. broadband-enabled homes had an SVOD subscription. In March 2016, NPD Group reported that 52...
When consumers can get a streaming video service with live channels and an on-demand library for $15 per month, their $80 per month cable or satellite service starts to look like a poor value. That's...
Luring and keeping customers is becoming harder as the online streaming market gets more crowded and subscribers, freed from cable television's contract model, can cancel service with a click of the m...
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