Whose line is it anyway?
By Mark Tennent in Reader
Posted in Video capture, Gripes moans and whinges, Broadband, Internet, Uncategorized on August 21, 2008 at 3:01 pm
iGate took another turn for the worst recently when the BBC announced they were moving streaming services from Akamai to Level 3 Communications. This latest skirmish is just another in the war between the BBC and Internet Service Suppliers.
Not content with threatening ISPs that the BBC would retaliate if customers’ access to streaming content was restricted, it is likely ISPs will be charged a lot more to stream re-runs of BBC shows. Internet suppliers are understandably miffed about the extra demands on their bandwidth that streaming TV makes. Some ISP’s report a 200% increase in traffic due to the iPlayer. To be charged to provide something they gain nothing from is just another kick in the teeth.
This is because nearly all ISPs will have to pay to receive traffic from Level 3 unlike now where they get data from Akamai for virtually nothing. The actual figures are somewhere in the region of £5 per mbit compared with the current £0.50 from Akamai, according to one commentator on thinkbroadband.com.
Just a minute…
Presumably the BBC is switching suppliers so that the end user pays for the service rather than the BBC. As licence fee payers we ought to be pleased but not if it comes as an across the board increase in the price of Internet access. TV companies already have three or more other ways to transmit their programs: analogue and digital RF and cable feeds, satellite as well as on DVDs.
Is there really any need to supply a scrunched-up, low-res version of last week’s Gardeners World when TV capture devices cost less than fifty quid? Not only that, the iPlayer is restricted to a few versions of a proprietary operating system even though the BBC have been told to open the service for Mac and Linux users. The other channels aren’t under the same control and simply ignore anything other than Internet Explorer but at least they are charging for their downloads.
That means we all end up paying more in extra costs for our broadband service as ISPs buy increased bandwidth to enable streaming TV, then add a little more to our bills to cover Level 3’s charge so we can download TV shows whether we want to or not. With a tiny bit more to the BBC to cover their loss of revenue in licence fees because no doubt downloaders won’t buy licences even though they need one.
As broadband speeds rise in the UK it is inevitable that Internet users will download ever increasing amounts of data. TV channels adding to this when they already have their own dedicated delivery mediums is taking things too far if they expect us to pay for it as well.
Rated: 100% (2 votes)
Loading ...Comment by jeremy - August 21, 2008 on 8:01 pm
mark;
just as the BBC is changing their business model so must the ISPs. offering a simple recurring fee for “all you can eat” bandwidth is a model with a limited lifespan. perhaps a better model is one where…if consumers wish to watch iplayer than perhaps they should incur the additional costs and if they don’t then they won’t pay extra. i think the position that ISPs need to raise prices for all user regardless of whether they use iplayer or not is something that needs further investigation.
also, your comment re the need for a new distribution model due to the fact that there are currently other methods is pure bunk. consumers adapt to distribution channels based on their needs not the sunk costs of existing supply chain owners. if you think that analog or physical distribution is going to be the preferred, much less better economical means of distribution, your nuts. the pace of improvement and innovation in the distribution of low/high grade digital content is unmatched.
the position that ISPs should be protected at the expense of others in the supply chain that are better strategically positioned lacks economic and historical basis. if you’re an ISP the value of your franchise just took a hit….deal with it, sell now or change, just like what happens in every other industry in the world.
just my humble opinion.
Comment by Ian Fannon - August 29, 2008 on 12:25 pm
Hi Mark,
I’d just like to clarify – you need a TV Licence for watching TV programmes, not for owning a TV set. So the rules for watching programmes online are exactly the same as watching programmes in any other way. It doesn’t matter how you receive them or what device you use - if you are watching or recording programmes as they are being broadcast, you need a TV Licence.
For more information about TV Licence requirements, visit www.tvlicensing.co.uk/info or contact us on 0844 800 5870.
Ian Fannon
TV Licensing
Comment by Mark Tennent - August 29, 2008 on 1:02 pm
Hello Ian. Thanks for the clarification.
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