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January 17, 2008

Time Warner Cable to Kill Video Advertising?

This can't portend well for video advertising, or for sites and portals that sell video ads (are you listening, AOL?).

Time Warner Cable just announced they'll be rolling out a sort of pay-as-you-go plan for broadband subscribers. Rather than the usual all-you-can-eat monthly package, they're going to experiment with "tiered levels of service based on how much data [consumers] download per month, rather than the usual fixed-price packages with unlimited downloads."

Pricing information is as yet unavailable, but aside from the fact TWC is obviously targeting users of P2P file sharing services, they're also going after users who download (or stream?) large amounts of video.

Well, that's just ducky for online video advertisers and the publishers, sites and portals who sell video inventory. Time Warner-owned AOL certainly comes to mind. Train consumers to equate online video usage to going on a meter -- rather like making long-distance landline calls or filling up at the gas pump -- and they're likely to think twice before hitting that play button, no?

Initially the trial will only affect new TWC subscribers in Beaumont, Texas. A quick search indicates the populace there -- thankfully -- has other ISP options.

Posted by Rebecca Lieb at January 17, 2008 1:52 PM

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