Set-top shakeup is in the cards

(continued from previous page)

Consumers have been able to get CableCards for the past few years simply by asking their cable operator for one. TV manufacturers have been putting CableCard slots into high-definition TVs for the last few years. But as of March, only 259,000 CableCards have been installed, according to the National Cable & Telecommunications Association.

The cable industry argues that this is an indication that there is little demand for CableCard-enabled devices.

"We're supportive of a retail marketplace," said Brian Dietz, a spokesman for the NCTA. "We've made CableCards available. But so far there seems to be little desire on the side of consumers to enable the technology."

In-Stat's Paxton said it will be difficult to create a consumer market for advanced set-top boxes. For one, American consumers like the device-subscription model.

TiVo, which essentially invented the DVR category, has never gained significant market share through its retail strategy. The company has shifted gears in recent years to license its technology to cable operators like Comcast. Satellite TV providers, which used to require subscribers to purchase their own set-top boxes, are now starting to offer their own leasing plans.

"I'm sure there will be some die-hard tech geeks who might be interested in buying their own set-top box. But will those 5,000 or 10,000 customers be enough to make a difference?"

--Mike Paxton, analyst, In-Stat

"Consumers don't seem to want the competition in the set-top market," Paxton said. "They are perfectly happy to lease a box from their cable provider for $5 or $10 a month."

One of the main reasons for this is that leasing a box offers little risk to the consumer, he said. If the box breaks or an upgrade is available, subscribers can just swap one box for another. And, he added, it's actually cheaper to lease a set-top box over the long term than to buy one.

The situation is no better for TV manufacturers, which have been putting CableCard slots in high-end televisions for several years. While consumers using a CableCard-enabled TV won't need a set-top box, the cost of these televisions is considerably more expensive than TVs that don't use cable cards and connect to a regular set-top box.

The other major issue is that the current version of CableCard technology does not allow for two-way communication between the device and the cable network. This means that interactive services like video-on-demand and pay-per-view can't be enabled through a CableCard slot on a TV or a set-top box bought at a retail store.

This is a major issue for companies like Digeo that want to sell their devices to high-end cable subscribers. Video-on-demand is one of the fastest-growing services that cable operators offer. At the end of the first quarter of 2007, roughly 30 million homes used video-on-demand, according to market research firm SNL Kagan. Operator Comcast said that roughly 75 percent of subscribers that could get VOD used the service.

"Without two-way functionality that works, it negates some of the advancements that new set-top box makers can offer consumers," said Ian Olgeirson, senior analyst at SNL Kagan. "They could deliver over-the-top content via the Internet, but I think that market is still a long way off."

A new specification called OCAP, or Open Cable Application Platform, should help. Cable operators and consumer electronics companies are working together to develop an acceptable standard. But that has proven difficult, given the fact that cable operators don't want to give up control of the consumer experience.

But companies like Digeo say that allowing cable operators to dictate what type of interface the consumer sees impedes on their ability to innovate and offer a differentiated experience for subscribers.

At the end of the day, industry experts say that the CableCard revolution and a commercial set-top box market have a tough road ahead.

"I'm sure there will be some die-hard tech geeks who might be interested in buying their own set-top box," Paxton said. "But will those 5,000 or 10,000 customers be enough to make a difference? I don't know. But at least this new rule will give companies like Digeo a distribution channel they didn't really have before."

[m.meister]

CableCards not catching on?

Hmm, Cable companies drag their feet for YEARS .. then finally
come out with a crippled ONE-WAY card.

They then use lack of support for their crappy ONE-WAY card as
evidence that consumers don't want a real CableCard.

Yet another example of corporations twisting reality with the
dumbfounded logic.

The solution for me is to cut off digital cable until such time as
they offer a real two-way CableCard. I don't want to be forced to
use their crappy set-top box (and they are crappy) or worse,
their crappy (AND BUGGY), cheap Tivo knock-off.

I don't think I should pay $13/mo extra (after a recent 30%
increase) for a "DVR" that locks up constantly, loses
programming guide information or worse, recorded programs
and puts ads inside of guides such that they actually interfere
with using the box. No thank you.

[`````]

wow that's bad, had no idea how good my DVR has been

Go Comcast!

[VDeCarlo]

Finally....

I have the best cable box that Time Warner offers (with a built in DVR) and I have to say that it's a horrible piece of equipment. ReplyTV had a better box more than five or six years ago. Allowing other companies the ability to offer competing cable boxes was an excellent move by the FCC and they should be applauded.

[BrettonW]

Happy customers?

InStat needs to do a little bit of checking, I think. Comcast's DVR service is among the worst pieces of software I've ever used. It's allowed to be that way because Comcast owns the link to the customer - this is the definition of anti-trust. I'd love to get TiVo, but the ComCast package is too attractive pricewise. Even absent "new" product ideas, I expect that the competition resulting from this change will increase pressure on the big vendors to ship a high quality product (one that actually works would be a big step, too). It also opens the door to innovation, a door which was previously locked tight.

[LCD1080]

The FCC's requirement will give more choice to the consumer

I disagree with this article when it states that the FCC's requirement will offer very little benefit for consumers. Up until now cable companies have been able to pressure their customers into renting their used cable equipment rather than owning it themselves. This is supposed to be a free market economy where people have the right to choose. Now thanks to the FCC perhaps that choice will become more readily available and adopted.

[ewelch]

One-sided, poorly researched, anti-consumer article

This article was obviously written from one point of view - the cable
operators' position on the subject of cable cards. They don't like the
idea of not being able to charge us $8 or more a month for a DVR.
That's because if there were two-way cable cards, and they allowed the
set-top box companies to download their own software into the boxes,
a major chunk of revenue would disappear. Just ask people who buy
their own cable modems. Is there a benefit there? You bet! No monthly
rental fee!

I will buy a Series 3 TiVO in a minute once I confirm from Time Warner
that they have the 2.0 Cable cards. Why? Because Diego's HD DVR - the
Moxie - is a lousy piece of technology. But of course it's slow and
buggy, it runs on Windows! It's slow and can't touch TIVO for the user
interface. Although the remote was obviously inspired by the TiVO
remote, so it's pretty good, if a mediocre to good imitation.

Actually, I don't really care if I get a 2.0 cable card. I don't use On
Demand video. I don't need interactive TV. I pretty much watch a few
good HD shows and that's about it. I watch very little non-HD stuff any
more because it looks so bad in comparison.

I hope C|Net got lots of money for this placed ad from the cable
companies. Such assertions as this new run not offering consumers any
benefit is a transparent lie. The only alternative is the writer didn't have
enough time to talk to both sides and trusted the cable companies to
give the whole picture. What did they teach us in journalism school?
Who, what, when, where, why. And the why here is obvious.

It was far from quality journalism that readers of this site deserve.

[IronTemple]

Definitely one-sided, poorly researched, etc...

As a TiVo S3 owner, I agree that the use of cable cards is a BIG
PLUS for getting better products on the market for consumers.
The TiVo experience is MUCH, MUCH, MUCH better than the
cable company DVR experience. I don't care about "on-demand"
(due to a lack of things I like), and all the other features on the
TiVo (menus, recording, searching) are FAR superior to cable
provided boxes. So the loss of the cable company's so-called
'features' on their boxes is no loss to me. The only complaint I
have is that my cable company did not have properly trained
technicians and service reps for cable card installation - another
reason they don't like it, I suppose: they have to pay for more
employee training! (Don't be afraid to contact the FCC if you
have trouble with cable card installations!)

[`````]

Ain't got no money, got no chicks for free.

The cable rental department will gladly service your slow, malfunctioning, constantly hacked personal cable modem with their own.
TIVO with 2.0 C-cards? Like I once bought a vacuum cleaner from Wal-Mart that ranked tops in Consumer Reports. When it blew the exhaust filter off I called Panasoni*, ahem, Wal-Mart customer service: "WE know it says HEPA filter in the manual but it's not a real HEPA filter, you see... there is more than one kind of HEPA filter." Yeah, I'm sure that this one is a v1.9-deluxe, not a real 2.0

[rbergerpa]

Why I don't have digital cable

I will never get digital cable until my TV, DVR, etc. can tune it
directly without adding another box from the cable company.
Without Cable Card, I will just avoid those services.

[Renegade Knight]

Exactly

My house is wired for cable. Any room, any device, they all just work with regular cable. As soon as I add a set top box, most of my equipment no longer functions correctly and I lose my convenience.

If they want to sell me digital or hi def they need to allow me to keep it simple.

[rcarsey]

Comcast & CableCards

This is actually a great rule. For about 3-4 months, I routinely called Comcast to have them come out and install a CableCard in my LG television. The answer I always got was "sorry, we don't have any in stock, try again in a couple weeks". I guess they must keep a very small inventory (i wonder why). This will (should) make cable companies carry larger quantities of Cable Cards -- and they can no longer play the "sorry we just ran out" game. I switched to FiOS anyway after that--denying them any more of my money.

[nt007]

Why people are not using cable cards

We actually have a cable card and the card is capable of a lot.
But Comcast does send the channel guide down to the card so it
is even brain dead for 1-way operation. The card has set-up for
the cable guide and we can display a blank channel guide, so it
must be able to use it.

But the most important reason why no cable cards are being
used is that I want TV's with cable card slots so I do not have to
have a desk top box. This is what cable companies are so
pissed about. Without desk top box no on-demand
programming. Now, I could care less about on-demmand
because it is just a way to get more money for programming.
But the cable companies are betting their future on on-demand.

We found one HD TV, Sony Bravia, with a cable card slot a year
and one-half ago. None can be found now at Best Buy.

Cable cards can only be used if there are slots to put them in.

[Cocalina]

Vanishing cable cards

I currently have a Mitsubishi LT 46231 with cable card and it works great. Unfortunatley Mitsubishi discontinued the cable cards on their smaller models. They still offer them on their high end models 46 and above. Pioneer still offers them on their plasma. If you go onto the Tweeter website and click on closeout inventory you will be able to find Samsung and Mitsubshi models with cable cards.

[cidman2001]

A what...?????

Maybe the reason there isn't any demand is the fact that there's been no effort to educate the public, because the cable companies don't like the idea in the first place. This is the first I've heard of it, albeit I don't watch much TV or care much about spending thousands of dollars for HDTV. I have basic cable and guess what I don't have to have a set-top box at all!!

[amigabill]

I want cablecards

I hate having to rent the cable boxes. I'd rather buy them and then pay the smaller cable-card only fee. Having to rent them forever, how many times do you buy the thing before you die of old age? I really only want to buy the box once. And I'd love to have a better choice in what box feaures I get.

I think the big reason we haven't seen a huge run for cable cards so far is that A) the cable company didn't have to and B) they haven't really had two-way cablecards available, so even those with slots directly in their TVs get boxes anyway so they can get on-demand and stuff like that which does not work with one-way cablecards. I'd love to get a Tivo Series 3, which I understand works OK, but does not have on-demand support due to the one-way cabelcards.

Also, I've heard that friends using this stuff have had a terrible time getting their cable company to get things right. One has a Tivo 3, and the cable dompany didn't want to give him two cablecards. Many of the ones they did give him didn't work, not even directly in his TV. They also had him stay home waiting for the isntall guy who twice arrived with no cablecards in his truck. Uh, why are you here to install a cablecard and you don't even have one?

Why does Verizon think it should get a waiver and not be required to do cablecards? I really hate their business methods. Let me choose what hardware I use for crying out loud. I'd like the ability to use my Tivo, as it gives me more than the cableco boxes do. The Digeo thing sounds cool. I'd love to be able to use a MythTV box with a gigantic hard drive. I'd rather pay for two cablecards for a multituner box such as Tivo 3 than have a stack of cableboxes.

The cable companies make money renting equipment to all of us. They don't want to lose that income, and that's why they don't like cablecards. They want to keep their control, power, and money, they don't care what may be "better" for the consummer. Cabelcards are a step toward losing some of each of those things companies want for themselves.

[murric1]

A Great Idea- Like Owning Your Own Phone!

If properly implemented, this would level the playing field on shoddy equipment! I purchased an LG digital tuner with the features I wanted (included upconverting DVD player). I did not need the Comcast Explorer 8300HD unit (features hard drive recording and also early units had firmware problems with HDMI switching A/V receivers). Also the Comcast boxes are ANALOG & digital! They never admit that reception isn't all digital. So, channels I like (HISTORY & DISCOVERY) are not remapped to digital equivalents. They also pass through only the HDTV channels as required by the FCC.

So, I bit the bullet and just ordered basic digital cable with HD. First they delivered a Scientific Atlanta 3250 HD box. It had an OK picture (LG was better!). But, on SD programming, annoying sync codes (white dashes) appeared above the images. Using the 3 postion zoom button, you could eliminate this, but also a large part of the image (LG had incremental sizing - far superior!). Comcast service came again and exchanged the box for an Explorer 8300HD (recording disabled). Exactly the same picture problems (probably the same tuner). An additional service call yielded the same results. On their suggestion, I purchased an expensive component video cable instead of HDMI. Guess what!- results the same! The Service Manager has yet to reply to my repeated calls!

Yes, Two-Way cable cards would be a great idea! Like owning a phone, you pay for the features you want! The quality of the set top box or TV would be your choice, and you can take it anywhere, without paying high rental fees for substandard equipment. The other side of the coin (If Congress would avoid the cable lobby) is a-la-carte programming. Who needs to pay for 17 cartoon and food channels!

[chuck_whealton]

Re: A great idea - like owning your own phone!

Yea, if implimented with the consumer in mind, it WOULD be a great idea.

Unfortunately, when I was looking at a large screen about a year ago, it came with a cable card. I called my local cable provider (name ommitted) and was told that they wouldn't program the card that came with the set.

However, they would be glad to rent me a cable card for several dollars per month.

If the powers to be really wanted to do us a favor, they'de separate sales of hardware from providing the cable service and allow multiple companies to build and market the hardware.

I feel like my cable provider is out to do nothing but take advantage of me.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com

[tgdelb]

Tivo 3 is the best example of cable card potential.

For anyone that want to see how a cable card can set you free try
the Tivo 3. It has two cards/tuners and is a shining example of
what the cable providers should be offering. Add a recordable DVD
and this unit would really be perfect.

[MyLord]

Except for the price

A $17/mon subscription capitalized at 5% is over $4k, a ridiculous price. As nice as it is, it simply isn't worth it.

[Onyxyl]

Making money leasing boxes???

I know for a fact that the Motorola HD DVRs cost around $500. My cable company charges $12.99 a month for the equipment. It would take a couple years to recover that upfront cost and by that time, the equipment would have to be replaced for an upgraded model. Plus you have overhead in stocking equipment, replacing bad equipment, etc. My cable company employees 2 people just to deal with this equipment. These boxes are only used as a value added service and because the competition has them also. My cable company is looking forward for the day that consumers can go purchase their own box!

[tanis143]

OMG, haters beware

Geez, everyone who blames the cable card's craptastic performance on the cable companies need to read who all had a hand in the development. Namely the MPAA stepped in and said they needed to have a say in its creation to "protect" their works. Since then, control methods they want have caused issues with it. Also, with two companies out there making these devices, there are bound to be bugs in both sides (the card and card-enabled device). Hince the reason tv's with cable card slots have updated firmware.

Not only that, but because the FCC pushed this so hard, cable labs was only able to certify the one way card while testing was is still being done on two way cards.

And yes, this requirement is only going to drive up the costs to the consumer. The cable companies have to purchase these cc enabled boxes from either Motorola or Sci Atlanta, and they will pass the cost of R&D onto the cable companies. As they say: Crap rolls downhill.

Though I would applaud a system that would allow me to use my pc to record digital content (ATI has such a card, but guess what, the MPAA will only allow it to be sold oem, so they can control what hardware it goes into) certain agencies feel so threatened over the whole digital age that they clamp down on anything new to prevent "piracy".

[drcos_fl]

OMG, Comcast shills beware!

I have read most of what there is to read.
And I have cards, and they work well once they are properly configured (a process which did in fact take some time due to the CABLE COMPANY).
And yes, I would love to blame the MPAA, but CableLabs is pretty much O&O by the cable companies so they know whose butt gets the first coverage.

And I'm sure TWCast will be complaining all the way to the bank about all the new 'costs' they have to 'pass on' to us consumers.

Hop back in your Comcast truck and be on your way.

[drcos_fl]

Two-way cards?? Check your facts.

Two way cable cards? The existing cards have the capability of two-way communication.
The problem right now is Cable Labs (a wholly-owned subsidiary of your American cable conglomerates) mandate for how the host device is allowed to communicate back to the head-end.
Right now, for communication back, the host must comply with the OCAP standards, which the TiVo does not (it involves basically giving your provider complete control over the box, not something I want to pay $$$ for).

Also, the lack of consumer demand is very much the fault of the lack of any advertising or push from either end on the cards. The only reason the providers are even supporting the cards is the FCC mandate. They would much rather keep their monopoly on renting you a $300 box for $20/month.

[batavier]

Ah, collusion strikes again

so what else is new in our anti-consumer politics

[curmudge1]

Verizon FIOS & CableCard

No way does Verizon deserver a waiver from the FCC -- Verizon knew about this requirement and went ahead and developed and deployed noncompliant technology. Verizon deserves to be penalized for their arrogance and defiance.

BTW & FWIW, in the New Jersey statewide Verizon FIOS TV application, Verizon lists the monthly cost of a CableCard as $2.99, iirc. So Verizon must be able to support CableCards, at least for the current one-way technology.

I, too, am waiting to be able to *purchase* my own NTSC/ATSC/QAM with CableCard set-top box, aka tuner. Anyone know of such? If so, please email me: dstrom and my ISP is speakeasy and the TLD domain is .net. (hope you can put those 3 pieces together to create an email address).

[`````]

I hope that some company can put together the jigsaw puzzle

of that tuner you're looking for. Sounds like some serious bandwidth and decompression abilities for one box. Might have to take a few shortcuts (noncompliance) to make that box. If the broadcasters didn't drag their 300 foot high steel heels, NTSC wouldn't still be around. How about wishing up a proprietary JVC link to your recording 'quipment so we can do some synchronised time-shifting?

[JCPayne]

Verizon does deserve a waiver. Their technology

is brand spanking new they haven't even gotten a chance to make back a profit on their investment. Comcast et al have had years..... now. They've been upgraded in most places for over 10 years now.

[VDeCarlo]

Try again.

Your opinion that offering CableCard compliant boxes will affect Verizon's ability to earn a profit is wrong. If they seriously think that losing the few dollars per month for box rentals will hurt them, they should just increase their service rates to compensate.

Customers should not be forced to rent inadequate cable boxes from any company - including Verizon. Competition, and the choices it brings, is better for everyone - including Verizon.

[batavier]

Bypass Set-Top Box?

I thought the main advantage of the cable card, was to replace the STB on new HiDef TVs. They will plug directly into a slot in the back of the set.

[azlizird]

Television!!!!

True freedom is NO TV. Let the greedy buggers starve and learn to read!!azlizird

[chriskva]

Cable companies provide content??

I always thought content was their business. Access to their content can be done with software. Cable cards are not even necessary. Cable operatives having been milking HDTV fans with rental fees, higher digital subscription fees. And don't let anyone tell you differently!

[tanis143]

Why blame cable companies

Ok, this is what irks me the most. Who invented the TV? Was it the TV broadcasters? No. Who created cable ready tv's, was it the cable companies? No. So why has it been forced onto the cable companies to create a two way cable card, or even the one way cable card for that matter? If the TV industry was so into giving the consumers choice, why didn't they approach the cable companies and say "Hey, we have an idea to allow tv's to receive digital content without the need of a box"?

And now for the smartest question, how will this ruling help usher in choice for consumers? This only affects boxes that the cable company rents out to its customers. So, the customer is still paying the rental fee for a box that does nothing better than the original boxes, except now they will be absorbing the cost of this forced upgrade. Yeah, that helps out.

Though one good side note, the rule only applies to boxes that are purchased new from the manufacturer, boxes that have been previously purchased before this deadline can still be put into use. So, hopefully the price of this new boxes can be spread out over time. Or, hopefully OCAP will be launched and provide an easier transition.

And to an earlier post, no I dont work for Comcast.

[rmorain]

Comcast business practice

I have been a Comcast customer for 8 years, from Comcast to AT&T back to Comcast again & I have to say that AT&T is the only one that knows how to treat their CURRENT customers. You get one service it's so much, add another service & it's so much with a discount on the first one, etc. The more services you had the bigger discount you had. When Comcast bought it back again, they got rid of those. All of the discounts go to the new customers, not the loyal ones that have a good history!!!

[patch991]

The Color of Money ....

It's obvious it's all about the almighty dollar (well, it used to be almighty) ... I currently use MS Vista Media Center and in the past I have used XP Media Center, I think their great! I think it's unfair that CableLabs wants to FORCE me to purchase a PC from an OEM to use cablecard, rather than allow me to build my own PC and have it work in it. This almost seems monopolistic to me ... FCC? Where??

[umjwc]

The situation with cable companies and the CableCard development is clearly a struggle of competing financial interest with little input from consumer interest. That is not my issue in this note. What I discover is that the availability of a full range of devices is limited by the infighting for market share. My situation is the following, I have a Comcast DVR on my primary HDTV but wanted a wall mounted second HDTV TV in the bedroom. The wall mount is very attractive and trim with no cables visible. This worked just fine with its QAM tuner although with some less that ideal channel numbers and no Comcast menus. It was workable but not wonderful. Some month ago all channels but the broadcast ones were encrypted and are no longer visible. This led me to seek a set top box from Comcast that would accept a CableCard and provide the lost channels and as a bonus the cable menus. However, because of the clean wall mount with all unsightly cabling behind the TV, there is nothing on the market to decrypt the cable channels that will fit behind the TV. I am amazed that with the popularity of wall mounting that no manufacturer considers the market for slender boxes adequate to support a simple box with RF in, CableCard, and one HDMI out. I suspect the infighting struggle for a maximum piece of the media pie has limited development of all but big DVR and bulky set top boxes with every conceivable output.

So now I am left to watch only broadcast TV, use a DTA and watch old fuzzy TV on a grand 1080P unit, or poke more holes in the wall and have an ugly set top box stuck somewhere in what would otherwise be a beautiful room. I have also found it amazing how hard it is to find anyone on the other end of a Comcast call that knows the slightest about future possibilities from Comcast.

[umjwc]

The situation with cable companies and the CableCard development is clearly a struggle of competing financial interest with little input from consumer interest. That is not my issue in this note. What I discover is that the availability of a full range of devices is limited by the infighting for market share. My situation is the following, I have a Comcast DVR on my primary HDTV but wanted a wall mounted second HDTV TV in the bedroom. The wall mount is very attractive and trim with no cables visible. This worked just fine with its QAM tuner although with some less that ideal channel numbers and no Comcast menus. It was workable but not wonderful. Some month ago all channels but the broadcast ones were encrypted and are no longer visible. This led me to seek a set top box from Comcast that would accept a CableCard and provide the lost channels and as a bonus the cable menus. However, because of the clean wall mount with all unsightly cabling behind the TV, there is nothing on the market to decrypt the cable channels that will fit behind the TV. I am amazed that with the popularity of wall mounting that no manufacturer considers the market for slender boxes adequate to support a simple box with RF in, CableCard, and one HDMI out. I suspect the infighting struggle for a maximum piece of the media pie has limited development of all but big DVR and bulky set top boxes with every conceivable output.

So now I am left to watch only broadcast TV, use a DTA and watch old fuzzy TV on a grand 1080P unit, or poke more holes in the wall and have an ugly set top box stuck somewhere in what would otherwise be a beautiful room. I have also found it amazing how hard it is to find anyone on the other end of a Comcast call that knows the slightest about future possibilities from Comcast.