If you have experienced issues streaming video online, there may be a reason for that problem. Cable companies are being probed in an antitrust investigation by the United States Justice Department to see if they are acting improperly by putting data caps on internet video services so that it can benefit their own services.
According to a report from the Wall Street Journal, video providers like Netflix and Hulu were among the many that were questioned by investigators regarding the possible data caps that cable providers have set on subscribers. Comcast, Time Warner Cable, and others were also questioned by investigators about allegedly placing limits on subscribers each month.
In this world of competition and several media avenues that a subscriber has for online content, cable companies setting data caps is a familiar tactic. Some cellular providers have set limitations on their data plans to help with bandwidth distribution.
So are the companies setting the limits at fault? Depends on their reasoning.
The report points out the companies claim they are setting limits to prevent users from overwhelming the networks. But the video providers like Netflix state they fear the limits are in fact aimed towards moving consumers off of online video services and keep their cable providers.
The Justice Department wants to uncover the validity behind the alleged caps, if any. If it so happens to be true, this will be just another bad mark that may plague cable companies.
(Photo source: Wikimedia)