"Two-speed" cable content could threaten advertising.
A debate in the US over digital content speeds could have a dramatic impact on global online advertising structures. Currently, US-based cable companies treat all digital content equally, delivering everything at the same speed.
However, if the Federal Communications Commission (FCC) has its way, "net neutrality" could turn into "paid prioritisation", allowing cable companies the opportunity to charge a premium for content which uses more bandwidth.
The result for consumers will mean receiving the paid content more quickly than standard information. The implications of the proposed regulations for the advertising industry could be significant:
- Advertising of non-prioritised goods and services could be associated with slow content and frustrated customers.
- Paid-for online media outlets may charge advertisers more so that their digital advertising loads more quickly - consumers may only see ads while the rest of their (desired) content loads.
- Brands may stop using current advertising methods and sponsor "fast" content instead. This would feature their own-brand content to cable subscribers whose content providers refuse to pay.
Advertisers' response to "paid prioritisation" may lead to content providers being forced to pay up or lose advertising revenue.