Sony Parts with Set Top Boxes

Cable companies have been driving their use for years. Building B, now called Sezmi, is pitching a unique flavor of their own. Vudu has an on-demand-only version.  Netflix (NFLX) just began offering a variant with Roku. Tivo’s (TIVO) got a few too. Still, for all the history, experimentation and evolution, despite the massive volume in use around the country, the days of the TV set-top box may be numbered. At least that’s the case for Cable TV decoding boxes, thanks to a new deal.

Tuesday, Sony (SNE) signed an agreement with the six largest cable operators in the U.S. (Comcast (CMCSA), Time Warner (TWX), Cox Communications, Charter (CHTR), Cablevision (CVC) and Bright House Networks) to standardize technology that will allow future TVs to receive “two-way” cable services without the need for a separate, decoding, cable box.

The deal will pave the way for more “interactive” TV features in the future. 

The deal also marks the beginning of the end to a longstanding fight. For more than a decade, cable companies and their trade group, the National Cable and Telecommunications Association, have been warring with consumer electronics makers over how to strike a balance between consumers' desire to buy devices of their own choosing against a cable network’s need to have network-compatible devices through which they can secure their content. 

It’s been a battle over whether or not to open markets. On one side, the cable companies have tried to push single branded boxes for use across their entire network. They’ve tried to stay in control and remain closed. On the other side, consumers and electronics companies have sought to expand choices; looked to make it possible for a consumer to watch cable TV through any set top box they might want.

The fight got big enough, the government got involved. A compromise reached to settle it, which stemmed from Congressional orders in 1996 (Section 629 of Telecommunications Act of 1996), was the “Cable Card.”  These are credit-card-like instruments which, effectively, act as digital keys. When inserted into competing boxes (as opposed to boxes leased by a cable company) or televisions, the Cable Cards unlock otherwise encrypted programming.

One of the big problems with Cable Cards is: working with existing boxes, they’ve only been unidirectional. They only decode data. They don’t allow it to be sent.  What that means is, if I went out tomorrow and bought a new cable box, inserting a card would only allow me to watch unscrambled programming. It wouldn’t allow me to use interactive program guides or order pay-per-view. It also won’t allow any other service that requires me to communicate back to the Cable company, testing and maintenance being one example.   

In a Cable Card era, the only way I’d get the benefit of full-featured service is if I used a cable company provided box or connected a phone line two allow two-way communication.

Under the new agreement that will finally change. By agreeing to incorporate the Cable Industries java-based interactive technology, called Tru2Way (previously OpenCable), and instead of pushing a competing software solution they’d previously backed (DCR+), Sony broke the stalemate. 

Now, in the near future, consumers who buy an equipped model Sony TV will be able to plug their cable straight in. No set top box nor phone connection will be necessary.  (Cable Cards will still likely be needed but now they will support two way communications).

In a statement, Sony called the deal good for consumers. With the six Cable companies involved serving more than 80% of U.S. cable's customers, that’s probably an understatement.

Expect other TV and electronics makers to follow Sony and sign similar deals. Expect one less clunky box to need space under your new flat-panel TV. 

Other Video Distribution News Flashes:
Amazon (AMZN) – coming from the All Things Digital’s D6 Conference, rumor has it Amazon will soon launch an on-demand streaming video service to compete as an alternative to iTunes rentals and Netflix Watch Now services. Nothing is confirmed but news is expected shortly.

Verizon (VZ)/Liberty Media (LINTA) – The telecom company and Liberty cut a deal to bring Liberty’s Starz Entertainment content to Verizon broadband customers.  For $5.99 a month subscribers will get access to an on-demand library of about 1,000 movies and another 2,500 videos. The programming can be downloaded to the viewer’s computer or watched in a live stream.

Comments

[JohnnyBRidge]

I think the idea of incorporating the STB into the TV could be pretty dumb. It could be pretty cool if there were no wires behind the components, but i don't see the benefit to me of the cable company gateway in my hardware. I won't buy a TV which includes a built in DVD or VCR. Why would I want to pay for the Cable company hardware, and if it fails, I may have to fix it, no thank you i want the box separate from MY TV. If the Cable company is getting paid for providing the signal, then i don't want to interfere with that delivery through their device. The next shoe will be the signal is okay when it enters your house, do you want our technician to trouble shoot the wires in your house. Guess who will pay for that service. I want the CC Box, and i want them to provide the highest quality signal on their network. I would like to know if it is really 480, 780, or some transmission disquised to emulate 1080P. i want the TV to determine the quality of the signal which is ACTUALLY displayed on the device. I want to complain when 780i is advertised as 1080P by the cable company, and it looks crappy on the 42 inch LCD Display.

My televisions are expected to last at least ten years, i replace my STB from the cable company every 18 months. IF THEIR EQUIPMENT DOES NOT WORK, I WANT THE TRUCK ROLL, I PAY A LOT, AND CANDIDLY RECEIVE VERY LITTLE VALUE FOR THE PRICE.

The current techs have to check the signal in the street, then the signal to the house, and finally the signal between the STB and the head-end. The techs on the trucks will be challenged if they need to trouble shoot customers TV's in addition to the current signal levels. Tru2way will be called screw2way or No2way requested or some expletive deleted reference.

If you tell me the cable company is going to upgrade the software in my television, you can f*&% off MATE. I don't want the cable guy in my house, and i CERTAINLY don't want to give the cable company access to MY TELEVISION. I will cling to my cable box or switch to AT&T or FIOS. i could easily conclude THE PROGRAMMING FROM THE BROADCAST COMPANIES IS NOT WORTH PAYING FOR THE CABLE CONNECTION, MAYBE I WILL BUY AN ANTENNA AND A BLUE-RAY DVD.
The current programming is ALREADY PATHETIC.

The cable company is challenged when they need to trouble shoot their own equipment which they own and install. If they think that putting advanced 2 way functionality into devices manufactured by 50 LCD and Plasma TV companies is going to be better than two ( Scientific Atlanta and Motorola) with a dedicated remote , some BEAN COUNTER has rock salt for brains.

Put the BEAN COUNTER ON THE TRUCK, let him feel the heat from an aggravated customer who is paying $150. a month , and the BEAN COUNTER will quickly realize how dis-satisfied the customer is when that BEAN COUNTER is tryng to escape because he has no idea why the signal is not displaying ESPN.