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Data caps prevent online video offerings that compete with – and potentially replace – cable TV. But don’t take our word for it. Just ask Sony.
Last fall, the Wall Street Journal reported that Sony was planning an online video service – something like a virtual cable company. For a fee, Sony would offer you a bunch of channels and deliver them over the internet. This model is great because it allows new companies to offer TV content and compete with cable companies. The only problem is that it relies on the fat broadband pipes that the cable companies control.