There might be decisions needed in the area of bandwidth, though. In allowing users to watch linear content online, using over the top broadband access rather than the traditional linear delivery, Comcast engineers face a bit of a dilemma.
When a single user switches viewing from the linear network to the broadband access network, zero bandwidth is saved on the linear network and new demand is created on the broadband access network. Even if most Comcast cable TV customer stopped watching linear TV, Comcast can save no bandwidth.
On the other hand, Comcast would substitute a one-to-one communication for a one-to-many, point to multipoint distribution mode. The difference is significant. If 200,000 users want to watch a linear program, Comcast essentially delivers a single copy, and all 200,000 can watch, with no bandwidth penalty.
If those same 200,000 customers want to view separately, on demand, Comcast has to deliver 200,000 copies. The problem gets worst with growing scale. So the decision that might have to be made is whether to exempt such offset video viewing from the normal 250 gigabyte per month cap, or include the video within the usage cap limits.
On one hand, if the Xfinity option proves popular, Comcast will face new pressure on its access network, and might like the additional revenue it might earn from selling more-expensive access plans that accommodate the additional usage.
On the other hand, Comcast might face customer push back to higher fees, or less usage of Xfinity by users who fear exceeding their limits.
One way of alleviating those concerns is by exempting Xfinity packets from inclusion in the monthly data allowance. None of that likely will be an issue immediately, as few consumers will watch so much, or already consume so much, that there is any danger of exceeding the monthly caps.
Down the road, if the offering proves popular, Comcast might have to ponder other options. Delivering linear programming in on-demand fashion has value. But it also is bandwidth inefficient. At some point, if the offering proves wildly popular, that additional demand will be quite significant.
1 comment:
Thank you for the detailed article. I didn't realize what a tough time Comcast is having with providing their programming online for their customers to access everywhere. My name is Nicole and I work for DISH Network. With the release of the Sling Adapter Dish has already achieved this goal that Comcast is striving for. I'd like to see how Comcast tries to tackle providing all their live programming to customers from any geographical location the way that DISH has already accomplished a while ago.
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