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CEO Hastings: Concerned About Data Usage Plans

26 Jan, 2011 By: Erik Gruenwedel

When Netflix launched a streaming-only service in Canada last summer, Rogers Communications, one of the country’s largest Internet service providers, began lowering data limits subscribers could use per month without paying a premium.

In the case of two-tiered plans, Rogers dropped the limit to 25GB per month. A separate online report found that streaming more than 13.65 hours of Netflix programming per month would exceed the limit and could result in additional charges.

Telecommunication operators in the U.S., including AT&T and Verizon, have recently implemented similar monthly data plans for mobile devices.

During Netflix’s Jan. 26 fiscal call, CEO Reed Hastings said the data limits imposed in Canada and other countries represented significant challenges going forward. He said efforts to implement so-called “pay-per gigabyte” in the U.S. would be met accordingly.

“We will be involved in that debate,” Hastings said. “We don’t expect it to happen, but we won’t be asleep at the wheel and let it happen, either.”

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