Audio Video News

It seems like a dream come true. After decades of sabotaging efforts to create a cable-ready standard for television sets, the cable industry appears to have come to its senses. The NCTA (National Cable & Telecommunications Association) has proposed a “ditch the box” initiative that embraces several necessary components of a scheme to replace the ailing 14-year-old CableCARD standard.

The move comes in the wake of a similar—but not identical—initiative launched by the FCC earlier this year. The root of the problem is that the cable industry is charging consumers $20 billion a year for rented boxes. Is the cable industry willing to replace that lucrative revenue stream with true cable readiness?

NCTA proposes requiring all pay-TV operators to adopt an app-based solution using the HTML5 open web standard with content protection. Consumers would be able to buy compatible devices from retailers. Integrated search would allow viewers to access both pay-TV and online video content. The FCC would have the power to enforce the standard.

Deployment would come in two years, which is pretty speedy—perhaps unrealistically so. Comcast and AT&T’s DirecTV were among those pitching the scheme to the FCC. It’s safe to say the cable industry would not have made this move without pressure from the FCC.

In general, the NCTA gambit is a subset—albeit a pretty darned convincing one—of the FCC’s stated requirements. The FCC proposal, in general, would afford consumers a broader array of options and protections. It would embrace both app-driven and other technologies and would take longer to implement.

There are many questions to be answered, starting with “who controls the interface?” Congress may meddle in the process—the Senate Appropriations Committee has already launched its opening salvo. Next we expect to see some give-and-take between the FCC and the NCTA. This is far from a done deal. Stay tuned.