Sony Holding Off on Streaming Video Services Because of Comcast Data Caps

Sony said earlier this week that it is holding off on launching a video service online because of Comcast's data capping policies and its preferential treatment to its own video services. Sony executive Michael Aragon told Variety on Monday that Comcast's discriminatory data caps are giving the company concerns about launching an Internet video service that would compete with cable and satellite TV services. In March Comcast announced that video streamed to the Xbox from Comcast's video service would be exempt from the 250 GB monthly bandwidth cap subscribers have to adhere to.

Sony went on to say that it was "waiting on clarity" from regulators on whether they would allow Comcast to exempt its own video services from broadband caps. Netflix complained about this very practice last month, and opponents of the Comcast NBC Universal merger predicted that – if given the chance – Comcast would give its video content priority over other video streaming traffic.

"These guys have the pipe and the bandwidth," said Aragon. "If they start capping things, it gets difficult."

Comcast holds more than 20 percent of the residential broadband market, which is why so many video streaming and entertainment services are peeved that they are giving special treatment to their own services. But what everyone is really wondering is why the FCC seems to be ignoring what Comcast is doing..

Source: Ars Technica

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