The Myth of "Expensive Online Video" - $1-2 Per Gigabyte Vastly Inflates Actual Costs
Originally published: August 13, 2009
Last updated: August 13, 2009 - 5:37pm
[Commentary] Myth #1: Hulu is costing broadband providers a ton of money - at least $1-2 per gigabyte. Truth #1: Hulu, and other online video services like it, do generate a considerable amount of broadband traffic in the United States. But since ISPs are actively seeking a way into the online video marketplace themselves, the solution seems to be system upgrades. Myth #2: Online video is such a problem, Canada, South Africa, Australia, and New Zealand adopted usage allowances to limit customers watching Hulu and other online video services "like from the BBC." Truth #2: Hulu restricts access to the majority of its content outside of the United States. If you are watching from Canada, Australia, or South Africa, you're more likely to encounter an error message telling you this content is not licensed for your area.
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