ESPN is taking a completely different approach to Web video. Some companies charge consumers for Web video access. Others offer it for free while looking for a way to sell ads. ESPN has decided to
charge Internet service providers for the right to carry its broadband Web service ESPN 360. This decision is the total reverse of the Net neutrality debate--a content provider charging its service
provider for the right to take up more bandwidth than before. What, exactly, is in it for service providers? As expected, ESPN 360 is standard ESPN fare: Full-length live sports programming,
interviews, highlights, games--more rich content than available on ESPN.com. The idea is that ESPN 360 will be such a draw for male Internet users, they'll choose their ISP based on whether they offer
the service. Hence, the charge levied on service providers. As
The Wall Street Journal points out, the charge-the-provider model comes from the cable TV world, where channels charge for the
rights to carry their programs. There's been no equivalent in the online universe--until now. However, ESPN hasn't proven that this model works; it's landed just two major Internet carriers: Verizon
and Charter Communications. Comcast, Cox and Time Warner have all refused. For one thing, they note that ESPN doesn't have the rights to run all of its programming on the Web. For another, there's no
proof of significant demand. And some service providers say they are reluctant to pass on added costs to consumers.
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