Consumer Spy

Hidden charges of TV on demand

I am the Consumer Spy, on the look out for hidden catches and dubious clauses, reading the small print so you don’t have to…....

Hidden charges of TV on demand

You’ll need to check your broadband contract to avoid being hit with hefty penalties for watching live TV or downloading films on your computer, warn broadband experts.

Following an inbox full of questions from customers worried about receiving bigger bills since the launch of BCC1 and BBC2 iPlayer live streaming last month, the Consumer Spy decided to get on the case and uncover the real costs of TV on demand…

Increasing numbers of broadband customers are downloading TV programmes and films from the internet, with BBC programmes being streamed or downloaded more than 17 million times in the two months following the re-launch of the iPlayer on Christmas day earlier this year, according to BBC figures.

Obviously, you’ll need a high-speed internet connection and large download limit to watch the channels online, but beyond that there are hidden dangers.

Michael Phillips, director here at ConsumerChoices.co.uk, expressed concern over download limits and fair usage policies being difficult to understand.

“The wider public may not be aware of the broadband usage caps and fair usage policies,” he said. “Families never used to download films from the internet but BBC iPlayer and Channel 4’s On Demand have changed all of that. It is causing a nightmare for all the internet service providers.”

He predicts many broadband providers will have to increase their prices in order to cope.

Meanwhile, tens of thousands of internet users are being hit with hidden charges for using online television services; and experts have warned customers could see their broadband bills rise by as much as £20 a month because of the extra costs.

And if your provider doesn’t charge you for exceeding your download limit, you may find that they throttle your connection speeds, such as PlusNet, who will restrict your service to 128Kbps.

The difference between downloading and streaming

Most internet packages come with a set download limit each month, and for those that are deemed “unlimited broadband”, customers will usually find that a fair usage policy applies, preventing heavy usage during peak hours.

The Consumer Spy’s research found that some broadband customers are being charged as much as £2.00 per extra gigabyte, while mobile broadband customers who exceed their download limits are billed per megabyte, and could rack up humongous bills for downloading even a 30 minute episode of EastEnders.

The table below shows how much customers will be charged extra if they exceed their monthly download limits:

So how much of your download limit does watching TV online actually use? Well, as a quick guide:

• Downloading a 10 minute video clip on YouTube = 200MB
• Downloading a DVD quality film = 4.5GB
• Downloading a 30 minute programme = 300MB

Therefore, to download an hour long episode of David Attenborough’s Life in Cold Blood would use 600MB. Streaming, watching the programme live, uses less of your download limit but the quality is reduced. A 30-minute show will use about 125MB if streamed, but this depends on the iPlayer and your connection. Some users have reported watching a half hour live episode of Never Mind the Buzzcocks for as little as 40MB.

This may not appear to be much, but if you’re using mobile broadband, such as the O2 example in the table above, the costs soon mount up. If you’ve exceeded your download limit, streaming a 30-minute episode of EastEnders would cost you an extra £25, and downloading a DVD quality film would add a whooping £900!

The lesson here is clear: make sure you read the small print and stick to your download limit.

Another important point to consider is the fact that if you are watching programmes live using the BBC iPlayer on any device - including mobiles, laptops and PCs – you must, by law, have a valid TV licence. You could be prosecuted and fined up to £1,000 (plus be ordered to pay legal costs) if you don’t have one.

BroadbandChoices.co.uk writer Garnet lists her top five ISPs for downloading here.

If you have a burning issue or a dodgy clause you’d like the Consumer Spy to investigate, please email me.

As always, Consumer Spy is on the look out for hidden catches and dubious clauses, putting you in know.

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