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Two Trends that Worry Me


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These are the two trends that worry me: 1) Comcast is capping data in more and more markets. The Chicago market is the latest victim. & 2) Spotify and Pandora have yet to have a profitable year. The points are that we who stream our music are looking at the possibility that the amount of music we stream will be limited by internet providers and the model for streaming music services has to change to something more profitable or, in other words, more expensive.

While a new age of lossless or cd quality streaming is on the horizon, the sun is setting on the golden age of inexpensive streaming. One may say "Ya git what ya pay for!" but, I have to ask what will we be paying when surcharges will be applied to data overages and streaming services will cost 2X?, 3X?, maybe 4x what we pay now.

Certainly internet service providers need to come under PUC control. Fat Chance! The trend to limit data and charge more for data access has been initiated by Comcast. Others are certain to follow.

So, what will it cost to stream in five or ten years?

Any others care to share their concerns?

K.P.Hooligann

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These are the two trends that worry me: 1) Comcast is capping data in more and more markets. The Chicago market is the latest victim. & 2) Spotify and Pandora have yet to have a profitable year. The points are that we who stream our music are looking at the possibility that the amount of music we stream will be limited by internet providers and the model for streaming music services has to change to something more profitable or, in other words, more expensive.

While a new age of lossless or cd quality streaming is on the horizon, the sun is setting on the golden age of inexpensive streaming. One may say "Ya git what ya pay for!" but, I have to ask what will we be paying when surcharges will be applied to data overages and streaming services will cost 2X?, 3X?, maybe 4x what we pay now.

Certainly internet service providers need to come under PUC control. Fat Chance! The trend to limit data and charge more for data access has been initiated by Comcast. Others are certain to follow.

So, what will it cost to stream in five or ten years?

Any others care to share their concerns?

 

The Comcast plan is for a terabyte per month which equals 700 hrs of high def video streaming or about 12,000 hrs of streaming music per month or of course any combination. I could live with that. That is the $49.99 plan with speeds at 75mbps.

David

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These are the two trends that worry me: 1) Comcast is capping data in more and more markets. The Chicago market is the latest victim. & 2) Spotify and Pandora have yet to have a profitable year. The points are that we who stream our music are looking at the possibility that the amount of music we stream will be limited by internet providers and the model for streaming music services has to change to something more profitable or, in other words, more expensive.

While a new age of lossless or cd quality streaming is on the horizon, the sun is setting on the golden age of inexpensive streaming. One may say "Ya git what ya pay for!" but, I have to ask what will we be paying when surcharges will be applied to data overages and streaming services will cost 2X?, 3X?, maybe 4x what we pay now.

Certainly internet service providers need to come under PUC control. Fat Chance! The trend to limit data and charge more for data access has been initiated by Comcast. Others are certain to follow.

So, what will it cost to stream in five or ten years?

Any others care to share their concerns?

 

A large chunk of Pandora's costs goes to paying royalties. Not sure what percentage ends up in the artists hands.

 

The business of streaming media is also about capturing the attention/time of the consumer (who is already being bombarded by so many in-your-face events). Even the news is marketed as info-tainment.

 

My issue with the music industry is that there are so few exciting artists. BandCamp and SoundCloud is my tool to search for cool new artists and bands. Even these two have pretty limited sound matching algorithms.

 

Pandora and Spotify need to do what Netflix did, namely sign up more exclusive deals with artists and fund the creation of new music. Move up the stack, stop being a pipeline only. Be a content originator.

Let every eye ear negotiate for itself and trust no agent. (Shakespeare)

The things that we love tell us what we are. (Aquinas)

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These are the two trends that worry me: 1) Comcast is capping data in more and more markets. The Chicago market is the latest victim. & 2) Spotify and Pandora have yet to have a profitable year. The points are that we who stream our music are looking at the possibility that the amount of music we stream will be limited by internet providers and the model for streaming music services has to change to something more profitable or, in other words, more expensive.

While a new age of lossless or cd quality streaming is on the horizon, the sun is setting on the golden age of inexpensive streaming. One may say "Ya git what ya pay for!" but, I have to ask what will we be paying when surcharges will be applied to data overages and streaming services will cost 2X?, 3X?, maybe 4x what we pay now.

Certainly internet service providers need to come under PUC control. Fat Chance! The trend to limit data and charge more for data access has been initiated by Comcast. Others are certain to follow.

So, what will it cost to stream in five or ten years?

Any others care to share their concerns?

 

None what so ever... the small percentage of data hogs using extreme amounts of service need to be capped so that we aren't subsidizing their gluttony.

Regards,

Dave

 

Audio system

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So, what will it cost to stream in five or ten years? Any others care to share their concerns?

deadhorse.gif My concern runs only as far as having to find the best service at the most reasonable price as the market sets new value standards. This is no more than history repeating itself - just look at the historical costs of cable TV and internet access to understand how and why this is happening. The industry sees this only as the end of the honeymoon for us, which is funny given that cable TV operations remain one of the most profitable business segments for most multimedia giants.

 

Of course, being an ISP at that level is also hugely profitable. From arstechnica a few years ago:

 

"Data caps and metered billing have generated significant consumer resistance not because the idea of metered billing is always bad, but because the new packages on offer feel like highway robbery. Proponents of such caps, like Time Warner Cable, often claim that people need to' pay their fair share' in order to fund future upgrades, so we rounded the quarterly earnings statements out last week from the major US ISPs in an attempt to gauge how accurate that argument might be. It turns out that just about everyone is making huge margins in Internet access, revenue is surging even as costs drop, and companies like Time Warner Cable have actually
reduced
(significantly) their capital outlays on infrastructure. Even those cable companies that are in the midst of their DOCSIS 3.0 upgrades are posting significant profits...

 

Even as Comcast has grown both its subscriber base and its revenues, though, its expenses for "High-speed Internet" have consistently fallen since 2007...

 

Time Warner Cable's overall revenues were up five percent from a year before, but when broken down by category, Internet access did much better—11 percent higher...

 

Essentially, the story is the same wherever we look: healthy operating margins in all telecommunications services, even as companies roll out faster Internet services, add more users, and as Internet use per person increases dramatically."

 

Per the WSJ, cable TV prices have increased 300+% in the last 10 years, with most of the increase attributed by industry executives to programming costs. Industry publications show that "...[w]ithin Services sector, Broadcasting Media & Cable TV Industry achieved highest gross margin...Revenue increased by 957.14 %". FWIW, the mean gross operating margin for the industry is a pathetic 27.54% and Comcast's net operating margin was a terribly disappointing 11.84% per CSIMarket. Boo hoo!

 

With internet programming and services taking over rapidly growing portions of the radio / television audience and telecommunications, "cable TV" and POTS are viewing the sunset. More & more households are cutting both cable ties and land line phone service in favor of internet programming and wireless communication - so internet access will be the core business for Comcast etc and it will generate their main revenue stream. It's not a surprise that they're gearing up to be the final common pathway for all entertainment, both programmed & on demand. So it shouldn't be a surprise that we'll be charged more for service. Yes, I'm concerned - but it's inevitable.

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