After receiving a lot of negative media attention towards their new bandwidth caps, TimeWarner has attempted to justify the situation by saying that it’s the customers fault. TimeWarner wants tiered Internet access, but not ala carte cable.
What TimeWarner has essentially done is oversell their subscriber lines, then complain when subscribers try to use the bandwidth they were sold. It is as if TimeWarner has five pieces of candy and sells two different customers three pieces of candy each. Then, when each customer wants their three pieces of candy, they blame the customer for being greedy and charge them more for that third piece.
What happens is that customers get charged for three pieces, but only take two or one because it’s less hassle. TimeWarner profits because it’s charging for candy not taken and they can sell that same third piece over and over, making more profits on something they never intended on giving to the customers.
TimeWarner now claims that their unlimited candy policy is now $150 per month. This is well above what most people can afford. However, once people do start paying this, there will be, again, more caps and limits on speeds while finding a way to charge the customer again.
The fact is, they don’t want you to listen to last.fm. They want you to pay them for their music channels. They don’t want you to stream Netflix. They want you to pay for pay-per-view movies. They don’t want you to watch TV via Hulu. They want you to pay them to watch TV. They don’t want you to watch baseball on mlb.tv. They want you to pay $70 more and watch MLB Extra Innings through them.
This is clearly about keeping money and charging you more for something you can get for free online. Their business model is quickly becoming outdated and TimeWarner are grasping at anything they can to take more of their customers’ money while giving them less. It’s anti-competitive and monopolistic and the sooner TimeWarner’s customers walk, the better.