Does ESPN stand for Everone Should Pay Now?
When it comes to watching video on the Web, some companies charge consumers for access. Others offer it free. Then there is ESPN who has decided to charge Internet service providers for the right to carry its broadband Web service ESPN 360.
This decision is the total reverse of the Net neutrality debate–a content provider charging its service provider for the right to take up more bandwidth than before. What, exactly, is in it for service providers?
ESPN 360 is standard ESPN fare: Full-length live sports programming, interviews, highlights, games–more rich content than available on ESPN.com. The idea is that ESPN 360 will be such a draw for male Internet users, they'll choose their ISP based on whether they offer the service. Hence, the charge levied on service providers.
As The Wall Street Journal points out, the charge-the-provider model comes from the cable TV world, where channels charge for the rights to carry their programs. There's been no equivalent in the online universe. However, ESPN hasn't proven that this model works; it's landed just two major Internet carriers: Verizon and Charter Communications. Comcast, Cox and Time Warner have all refused. For one thing, they note that ESPN doesn't have the rights to run all of its programming on the Web. For another, there's no proof of significant demand. And some service providers say they are reluctant to pass on added costs to consumers. – Read the whole story…
Posted by admin on August 3rd, 2006 :: Filed under Business Trends
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