Bloomberg cites Craig Moffett, an analyst with Sanford C. Bernstein & Co, who predicts that a major cable company will move to usage-based pricing next year in response to the increased Netflix streaming usage by customers
“As more video shifts to the Web, the cable operators will inevitably align their pricing models,” Moffett said in an interview. “With the right usage-based pricing plan, they can embrace the transition instead of resisting it.”
U.S. providers like Time Warner Cable have weighed usage- based plans for years as a way to squeeze more profit from Web access, and to counter slowing growth and rising program costs in the TV business. While customer complaints hampered earlier attempts, pay-TV companies are testing usage caps and price structures that point to the advent of permanent fees.