TIVO: Cable Operators To Screw Us With SDV

Jason Jones: Tivo and the CableCard consortium face a threat from Switched Digital Video (SDV) offered by cable operators, according to MultiChannel News. SDV sends individual channel streams to viewers upon request rather than broadcasting channels to all users.  This requires two-way communication and is theoretically more efficient.  The industry has recently agreed upon the TiVo-friendly CableCard standard, which is a one-way technology and cannot support SDV--but the cable operators seem intent on going ahead with SDV.

All cable operators are required to begin distributing CableCard-ready set top boxes beginning July 1.  These boxes will have a slot available to insert a CableCard, which will enable channel selection and scrambling technology.  The consortium is intended to promote the compatibility of alternative set-top boxes, making consumer options more widespread.  TIVO has embraced the CableCard concept and has already launched the Series 3, a CableCard based HD-DVR.   

TIVO may have the FCC on their side.  Representative Anna Eshoo (D-Ca) said:  "I am concerned that despite the implementation of this mandate, many cable operators will either hobble or render competitive set-top boxes unusable by deploying new channel switching technology that won't work with other boxes"

While the cable operators have expressed a desire to work with TIVO to create a two-way solution for CableCards, they may drag their feet.  This would put TiVo even more behind the 8-ball.

Comments

[Still Inside]

Tivo did this to themselves by not doing enough deals with cable and hardware folks and opened the door to the generic "DVR". Now every TV commercial for Tivo is a commercial for a DVR as well.

Long ago they had a choice between high margins or long term market domination. They chose the former. Now that is coming back to haunt them.

Now they are apparently whining to the government, which is a sure sign that they've lost the ability to innovate. Definitely not a long term play, TIVO.

SI

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