Have You Seen Your CableCard Lately?

Per FCC rule, cable set top boxes were required to use CableCard Technology, as opposed to internal security, so that other companies could off cable access without a cable box. And so, almost 30 million CableCards are out there. "The 10 biggest U.S. cable operators have to date deployed 582,000 standalone CableCards to subscribers for use in retail devices such as TiVo DVRs, according to figures the National Cable & Telecommunications Association submitted to the FCC Thursday." That means that less than 2% of consumers are using CableCards outside of their set top box in other devices like Tivo. Hardly good news for Tivo or for the CE industry.

In fact, I would say that the vast majority of consumers with cable boxes were even aware that a CableCard exists in the device. And certainly the cable operators are not encouraging consumers to get CableCards. "The FCC is currently considering a successor to the CableCard regime. The new "AllVid" regulation would force all multichannel video programming distributors -- including satellite and telco TV providers -- to deliver video to third-party hardware devices using a common set of technical interfaces." Certainly better news than what exists today.

Still CE companies are not waiting for cable operators. The rise of broadband enabled TV sets, Tivos, and blu-ray devices indicates that the push is for easier internet access. CableCards cannot help the TV Everywhere model. As authentication is required for multiple devices, CableCard technology is limiting. As more content makes its way through the web, the concept of CableCards becomes antiquated as connectivity is achieved both in a wired world as well as a mobile one. And cable operators are in desperate need for new agreements to offer access of content both inside the home and out.

So have you seen your CableCard lately, probably not. Best to one day look for it in a museum.