#unlockthebox

I’m confused by the industry’s argument that opening up the $20B/year cable set-top box “market” to competition will harm innovation.  I’m also not convinced, with or without the unlocked box, that incumbent firms and new entrants alike will get it right and give consumers what they want – simplified and integrated viewing of broadcast and internet-delivered programming at a reasonable price with one remote control device (please).

My preference would be to get rid of the box(es).  Too many times they don’t sync with my TV when I turn it on or change channels.  So frustrating!  My preference would be to have one device that works with any hardware in the house (TV, computer, tablet), recognizes any type of programming on demand, and includes some advertising so I don’t have to pay quite as much for it.  Is that too much to ask?  It may be!

What's Up?

As Comcast "celebrates" a net add of 89K video subscribers in the 4Q (and a loss of "only" 36K for the year), it is expected that 35% of millennials will watch the live stream of Super Bowl 50 via a web browser or internet TV platform (e.g. Roku, Google Chromecast, Apple TV).  CBS is providing the live stream (with ads) for free.

Watching live sporting events was always the strongest reason to keep the cable cord.  If more "must see live programming" is offered for free, Comcast's 4Q gain in video subscribers will be an anomaly and not a sign that cable is back in favor with consumers.

Why has it taken so long?

The FCC announced last week that it wants to open up the cable box “market” to competition.  Today, as a cable subscriber, you need technology (a set-top or converter box) that changes network signals into watchable television content.  And, you need one box per TV.  Up until now, the vast majority of cable subscribers rent those boxes on a monthly basis from their cable company.  The average annual cost per household is $230.  Moreover, some households (like mine) have app devices (Google Chrome, Apple TV, etc.) in addition to the set-top boxes.  The cost and complexity have gotten out of hand.   We feel “boxed-in”. 

Of course, the National Cable Television Association (NCTA) believes that the FCC is forcing a “technology mandate that would replace [the cable industry’s] app innovation with government regulation.”  But, something has to change.  Maybe the “threat” of opening a market to competition will inspire more thoughtful and purposeful collaboration among industry participants and regulators that provide consumers with more valued video-viewing options sooner rather than later.

Fortune article