ESPN Looking to Pay Wireless Carriers for Customer Data Overages
May 10, 2013 11:21 AM
comment(s) - last by
This would allow customers to watch all the ESPN they want monthly
ESPN may pay for data overages that customers encounter when viewing its content on mobile devices.
Many mobile subscribers now have data caps to worry about, since tiered pricing plans have taken over unlimited plans with most carriers. This means that customers must keep an eye on how much content they're consuming monthly, such as videos, games and music -- or else they'll be hit with hefty fees.
ESPN has been talking with an unnamed U.S. carrier about paying for a guarantee that mobile customers viewing its content wouldn't get slapped with data overage fees. This would allow smartphone or tablet users to
watch as much ESPN as they'd like
without it counting toward their monthly data cap.
This model isn't a sure thing yet, as ESPN is still merely in talks with the carrier. However, it could benefit all sides of the situation.
For ESPN, having consumers watch more of its events on smartphones and tablets means greater revenue from ads on these devices.
For the carrier, it means having a new source of revenue without having to keep hiking up monthly data plan prices for customers.
For the customers, they get to watch as much ESPN as they want without worrying about crossing that data cap.
While this could prove to be a great plan for content providers, carriers and mobile customers, telecommunications regulators may have something to say about the deals if they move forward.
Another possible way that ESPN could pay carriers is by sharing the advertising revenue with them.
The Wall Street Journal
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RE: Bad precedent
5/10/2013 4:32:47 PM
Except for the fact that it bears no resemblance to reality, sure.
What ESPN is paying for is preferential treatment. When you hit your cap, *everything* except ESPN content slows to a crawl, or maybe just goes away depending on your plan.
If they were "paying for your overages" then there would effectively be no cap on your data service. That's obviously not what they're doing.
No, what they're doing is guaranteeing that once you hit your cap, you're going to be their captive audience. And if anyone else wants to get a bit of your eyeballs, they're going to have to compete with big money to get it too...just like ESPN did.
RE: Bad precedent
5/11/2013 1:07:17 AM
Yep but small content providers don't have that budget. You can say ESPN is doing their customers a favor OR you could say ESPN is blocking the competition.
It is not illegal as ESPN is not pricing under cost.
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