Thursday, July 26, 2007

Cable Without a Cable Box, the Start of TV Convergence

Terrific article in this morning's NYT that encapsulates the new opportunities opening for the TV to do much more because of the CableCard. Consumers may now get access to more opportunities: DVDs that can directly record all digital cable programming with a better signal, Tivos working without rigging connections to get a poor signal off a cable box, and other advances. Cable operators may fear the loss of revenue from selling lower priced cards instead of higher priced settop boxes, they also can reduce the higher inventory costs of the settop boxes. Cable operators should not be in the business of selling boxes, the revenue streams are in the service of the pipeline. It's in the cable operator's best interest to embrace the CableCard when they get out of the box business, With the CableCard, the power of choice goes to the consumer to decide which box fits their needs the best. The CableCard opens up the ability to bring convergence to the TV with more devices able to talk the talk.