FCC adopts 'Unlock the Box' proposal to open set-top box competition
The Federal Communications Commission will force cable providers to ensure interoperability for third-party set-top boxes, paving the way for companies like Apple to integrate linear television programming into their offerings.
The commission was predictably split on the issue, which cable and satellite operators vehemently opposed. Cable companies stand to lose millions of dollars in rental fees and -- perhaps more importantly -- direct control over their relationships with customers.
Consumers would still be forced to pay a subscription fee for access, but would otherwise never have to interact with their cable provider. A set-top box purchase from Apple or Google could serve as the front end, making those companies into de facto content gatekeepers.
FCC chairman Tom Wheeler believes this will foster competition to create the best experience.
"[Cable companies] and competitors should be able to differentiate themselves and compete based on the experience they offer users, including the quality of the user interface and additional features like suggested content, integration with home entertainment systems, caller ID and future innovations," Wheeler's proposal reads.
Under the plan, cable companies will be required to give set-top box manufacturers access to program listings, content, and information about how the programming can be treated -- for example, whether a specific show can be recorded. It does not grant third parties any rights with regard to content licensing.
The commission was predictably split on the issue, which cable and satellite operators vehemently opposed. Cable companies stand to lose millions of dollars in rental fees and -- perhaps more importantly -- direct control over their relationships with customers.
Consumers would still be forced to pay a subscription fee for access, but would otherwise never have to interact with their cable provider. A set-top box purchase from Apple or Google could serve as the front end, making those companies into de facto content gatekeepers.
FCC chairman Tom Wheeler believes this will foster competition to create the best experience.
"[Cable companies] and competitors should be able to differentiate themselves and compete based on the experience they offer users, including the quality of the user interface and additional features like suggested content, integration with home entertainment systems, caller ID and future innovations," Wheeler's proposal reads.
Under the plan, cable companies will be required to give set-top box manufacturers access to program listings, content, and information about how the programming can be treated -- for example, whether a specific show can be recorded. It does not grant third parties any rights with regard to content licensing.
Comments
They (cable and satellite operators) get a vote?
And I can't really imagine that the Cable companies won't be able to charge a fee for the program guides and schedules to third party vendors. In fact, I don't think there were any reasons third party manufacturers have not been able to manufacture compatible boxes presently, other than the licensing issues.
Also, this is bad for Apple, especially if they get into original programming, since they will likewise have to offer their services to third party set-top boxes. SO I could theoretically buy a box from Amazon and watch my iTunes and Apple content on it.
In practice, they can afford to buy a few extra votes both directly and indirectly.
Damn rip-off artists.
Don't look for solutions anytime soon. This will probably fizzle out just like the numerous times before that the FCC tried to open the market. Any real solution will have to be global. Right now there are hundreds of propriety set top box manufacturers worldwide. For Apple to enter this industry it will need a much broader scope than just the US and they will still need licensing agreements with all the carriers. Personally I have zero confidence this will happen. Seems like an extreme uphill battle. What we need is more competition in carriers, not set top boxes. Most of the US only has one choice for a cable provider. By the time set top boxes are standardized everything will be delivered over the Internet anyway.
-KeithP
No magic cable fairy just made every household in a community be connected. That cost money, a LOT of money.