How much longer will ISPs contribute their infrastructure, their bandwidth and all of the associated expenses for build-out and maintenance to the success of over-the-top movie and entertainment subscription services like Netflix without compensation?
In the view of Pixelmetrix CEO and president Danny Wilson, it’s tough to know exactly when there will be an end to the largess. Wilson, who recently penned a white paper on the over-the-top market and technology, says one of the most important issues facing ISPs is their current inability to share in the revenues of OTT subscription services, which are using a large percentage of the ISPs’ available bandwidth. In his view, there is no such thing as a free lunch, and OTT subscription services have been participating in a virtual smorgasbord of all-you-can consume capacity without paying the tab.
As ISPs look for ways to cope, many are likely to begin demanding payment for a guaranteed quality of experience in the homes of their customers. And while FCC Net Neutrality rules prevent ISPs from discriminating against content rivals like OTT subscription services in the way they allocate bandwidth and manage their networks, Wilson believes offering tiered service to guarantee a certain level of viewer experience may not run afoul of the rules and provide a solution.
In this, the first of a two-part podcast interview with the head of Pixelmetrix, Wilson describes the growing problem and how it can be resolved.