Broadband Data Caps Pressure ‘Cord Cutters’
Data limits once seemed like a problem confined to smartphones. But millions of Americans are facing them in their living rooms as their home Internet providers require them to ration Web usage or pay surcharges. That is a threat to Netflix and video upstarts that depend on broadband to deliver their service.
Fearful of crossing data limits, some customers say they are canceling the streaming services, including Netflix, Sling TV and Sony PlayStation Vue. Many have complained about it to federal regulators: Consumer complaints to the Federal Communications Commission about data caps rose to 7,904 in the second half of 2015 from 863 in the first half. As of mid-April, this year’s total was 1,463.