This is the most accurate answer. However, a good source of “cost data” is what the companies do with the money, and in the end, the average consumer will probably end up spending less than $1 per minute, regardless of whether you actually use the service they offer.
Let’s say you pay $2 for 1 minute. That’s $12 in revenue for the ISP. This is a big chunk of change, but not very expensive compared to the many thousands of dollars spent annually by cable and satellite operators.
As a result, the ISPs are reluctant to change pricing schemes, and therefore are in a position to give you that $12 a minute without any real penalty in the long run.
Some ISPs have had some problems with video programming, but most don’t really suffer much from it (except, obviously, if a cable or satellite company does a lot of that).
If you’re wondering why I’m calling this “the “content fee” – it’s because you’re technically paying for a very specific type of video. Most “unlimited video” that’s out there is actually limited “prestige cable”, and it’s not just a “low-cost” version of a cable TV service.
In my area of California, you can pick and pay for a single-stream service, where the price is just $5 and you get 100 channels, a high quality TV and HD streaming through Netflix, Hulu or Amazon Prime; or you can pay $20 for 100 channels, a good TV and HD streaming through Netflix, Hulu or Amazon Prime, and then you can have unlimited access to any one channel via a high-speed broadband connection (that you pay by the megabyte). That $20 price is also a big chunk of change to start, and not something that most people can afford without going into debt for hundreds of thousands of dollars.
I suspect that if I were doing that service, the customers would really like it, and would really feel like they’d been “robbed” (because they’d have to pay a premium for that 100 channels), but the ISPs will never put in place the right pricing schemes to allow for that (though they may, for better or worse, try to).
The best solution is to stick the same content in the same packages – that way customers get the same value for their $5 per month and pay $20 to be able to stream whatever they want across the Internet, at whatever speed they want.
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