Cable Industry Whines About Possible Set Top Box Competition Yesterday we noted how the FCC was planning to unveil some new guidelines that would kill obnoxious cable set top box rental fees, by opening the segment up to hardware competition. In short, the FCC wants users to be able to use the hardware of their choice to connect to the legacy cable TV network, hopefully resulting in better gear at cheaper prices for consumers.

99% of cable subscribers pay $231 in fees in just a single year for set top hardware. Hardware that's often barely worth a full year's worth of payments, much less the years of such fees most consumers pay. Obviously the cable industry wants to protect the $20 billion it collects annually in fees for this sub-standard hardware. As such, groups like the cable industry's chief lobbying organization the NCTA got right to work trying to demonize the proposal, claiming in a blog post that the FCC's plan is really part of a secret cabal by "Big Tech" (Google, Netflix, Roku and others) to demolish the amazing innovative power of the existing cable business. "By forcing new government mandates on network providers and content creators, the FCC may intend to reward Google handsomely, but in the process it will ignore contractual freedoms, weaken content diversity and security, undermine important consumer protections like privacy, and stall the creative and technical innovation that is driving positive changes in today’s TV marketplace," states the NCTA. Again, that's code for: we don't want to lose $20 billion in captive revenue annually. The FCC's proposal doesn't really change things all that drastically, it just requires that cable providers provide software data that can be used in third-party boxes. Cable is allowed to continue offering ugly, dysfunctional, and over-priced cable boxes, and subscribers are allowed to keep them if they wish. Hardware competition will just require that the cable industry, for the first time ever, actually earn those consumer dollars. Granted, with the lack of competition in the broadband space, any lost revenue will more than likely be made up for in the form of a higher broadband bill. Granted, with the lack of competition in the broadband space, any lost revenue will more than likely be made up for in the form of a higher broadband bill.







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Most recommended from 33 comments



limegrass69

No Whammies

join:2008-05-28 13 recommendations limegrass69 Member Real reason the cable industry is pissed... The competing set top box makers will be able to sell our viewing habits to advertisers instead of the cable company having a monopoly on that data. strange_69

join:2001-08-07

Ridgecrest, CA ·Sidewinder Netwo..

9 recommendations strange_69 Member Don't worry. Don't worry, there will be no loss in revenues. They will simply raise rates (buried) the next "negotiations" with content providers. Of course, there will be a lot of obligatory flat and flail but rates will go up. The only difference is that they will go up a little higher than usual.

SuperSpy

join:2012-06-15

Coldwater, MI 7 recommendations SuperSpy Member I love these PR pieces It's like they just spew as many things as they can and see what sticks. If they had a real argument, they wouldn't say stupid bullshit like "stall the creative and technical innovation that is driving positive changes in todays TV marketplace,"



Like, really? Seriously? clocks11

join:2002-05-06

00000 6 recommendations clocks11 Member The real problem is competition We need to look to improve competition, rather than making small regulations. Treat the problem, not the individual symptoms. sandman_1

join:2011-04-23

11111 5 recommendations sandman_1 Member Laughable ""By forcing new government mandates on network providers and content creators, the FCC may intend to reward Google handsomely, but in the process it will ignore contractual freedoms, weaken content diversity and security, undermine important consumer protections like privacy, and stall the creative and technical innovation that is driving positive changes in todays TV marketplace," states the NCTA."



I have never laughed so hard in my life. Nah really, you were kidding right? These guys need a reality check and I hope the market does open up in this regard. Every time I go to my mother's house and use here cable tv box, I just shake my head at how horribly designed the interface is and how slow it is to respond to button pushes.

DaveDude

No Fear

join:1999-09-01

New Jersey 2 recommendations DaveDude Member home gateway Its time for the home gateway. Encrypted quam streams are the future, or iptv . Similar to direct. mikesco8

join:2006-02-17

Southwick, MA 2 recommendations mikesco8 Member A little late I think it is great that the FCC is finally addressing this, however by the time anything formal is accomplished, cable companies will be begging people to subscribe and allow them to use streaming devices like the roku instead of set top boxes.