[opendtv] Re: Market forces
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Sat, 8 Jun 2013 06:56:54 -0400
On Jun 4, 2013, at 7:20 PM, dan.grimes@xxxxxxxx wrote:
> While reading this...
>
> http://arstechnica.com/tech-policy/2012/07/how-big-cable-killed-the-open-set-top-box-and-what-to-do-about-it/
>
> How Big Cable killed the open set-top box—and what to do about it
> Researcher argues the FCC's set-top box strategy is doomed to failure.
>
>
> ..it dawned on me that the FCC will have to revoke it's rules for keeping
> basic cable packages unencrypted IF it forces ala carte. It seems to me that
> they would need to encrypt all channels and then send a code to a set-top box
> to decrypt the channels one pays for. From a physics level, it would be
> impractical if not impossible to filter the channels. Besides, with multiple
> channels being delivered in a single carrier, it would still need to be
> controlled in the digital domain. So basically, in order to implement ala
> carte, there would have to be full encryption, correct? Or is there another
> technology that would allow for ala carte?
>
> So will the need for encryption prop up the argument for an STB, at least for
> the current generation of gear? I suppose one can put a full STB function in
> the TV, but is that really practical for different MVPDs and systems?
>
> Dan
Keep in mind that "basic cable" is primarily the local broadcast channels and a
few others that typically benefit the cable company like shopping channels.
While ala carte rules might allow consumers to choose/or ignore these channels
as well, the real battle is the bundling of the channels in the extended basic
tier.
It's too early to tell, but it would not surprise me if any legislation about
ala carte would still require the delivery of all local broadcast channels,
along with their retrains fees.
From a technical standpoint analog cable is problematic, as it would require
blocking filters at the pole or house for the channels you do not want. So the
likely path is to turn off analog, recovering that spectrum for more broadband
and require everyone to upgrade to digital cable. This could require a new STB,
but there are already equivalent modules, about the size of a Roku or Apple TV
that could handle the blocking and decryption.
Given the strategic direction of the FCC, I don't see them changing course and
forcing "open set-top" rules on cable or DBS. What "could happen" is that once
ala carte was in place, we could see rules that require the content owner to
make that channel available to anyone, via cable, satellite or Internet, with
the content owner setting the price.
Regards
Craig
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