Afraid Of Upsetting The Cable Industry, Roku Won't Support FCC Quest For Increased Set Top Box Competition

from the i-got-mine,-thanks dept

As the FCC continues its push to open up the cable set top box market to competition, one of the companies that could benefit the most from such a shift isn't willing to support the initiative. The FCC's plan calls for the cable industry to deliver its existing cable content to third-party hardware, creating a new competitive market and putting an end to the $20 billion in fees consumers pay yearly for often-outdated hardware. But unlike companies like Google and TiVO, Roku isn't supporting the plan, making it clear this week the company doesn't want to upset its friends in the cable industry:

"We have not been advocating for a rule making in this area at this time,” Tricia Mifsud, a Roku spokeswoman, told IBD. “While we are known for selling streaming players, it is only one area of our business. Customers also access our platform through smart TVs and streaming players that operators deploy."

Roku's been partnering with Charter and Time Warner Cable (soon to be merged) on small-scale trials that involve the cable companies giving away a free Roku alongside a skinny bundle of basic channels. In New York City, for example, Time Warner Cable's trial offers the free Roku as a replacement for the cable box, delivering three different skinny promo bundles ranging from $10 to $50. Roku makes it pretty clear it's keeping its mouth shut in the fight over the cable box because it believes these relationships will only flourish:

"In addition to Time Warner Cable, we also have a similar arrangement with Charter where they are buying streaming players to offer in a bundle,” added Roku’s Mifsud. “Overseas, we have partnerships with Sky in several countries and Telstra where we have licensed use of our platform and they have deployed their streaming video services to co-branded streaming players."

Indeed, Roku's already cooking up a hybrid streaming and cable box for use overseas it hopes the soon-to-be fused Time Warner Cable Charter will adopt as well. The problem is that these trials aren't likely to see broader deployment in the States, because execs fear such alternatives will cannibalize their already-struggling traditional cable subscriber bases. Cable operators have a long, proud history of flirting with more innovative, less expensive alternatives only for executives to scrap or hamstring the ideas for fear they might hurt the sacred, legacy TV cash cow.

But, because Roku believes it's first in line for the cable industry's affections, it appears to be backing away from an initiative that would likely be good for the entire sector (investment by Viacom, 21st Century Fox, and UK cable operator Sky might be shaping Roku's thinking as well). After all, why support broader, healthy competition when you believe you've got the inside track? Well, because should the FCC's gambit actually work, Roku (which people forget began as a brain child of Netflix) stands to gain a much larger chunk of this suddenly-open market than it will from remaining mute.

Filed Under: cable, fcc, set top boxes, tv
Companies: roku

Comcast Still Blocking HBO Go On Roku (And Now Playstation 3), Incapable Of Explaining Why

from the crash-the-gatekeepers dept

For years, HBO and Time Warner have refused to give people what they want and offer a standalone streaming video service, because they're afraid of shaking up their cozy, promotion-heavy relationship with the cable industry. Instead, HBO's Go streaming service has been made available on desktops and a growing number of devices, TVs, set tops and game consoles -- provided you log in with your traditional cable subscriber information. It's a half-measure, and availability to this day remains a little fractured.

Case in point: Sony this week finally made HBO Go available on the Playstation 3 (despite HBO Go launching in early 2010), but not the new Playstation 4. The new Playstation 3 version works for most cable operators in the country -- except for users on Comcast. Why not? Comcast doesn't really give an answer other than to say the massive (and soon to get much larger) company only has so many people available to ensure TV Everywhere authentication works on new devices:

"With every new website, device or player we authenticate, we need to work through technical integration and customer service which takes time and resources. Moving forward, we will continue to prioritize as we partner with various players."

Which might almost sound like a reasonable explanation -- until you realize that HBO Go on Roku hasn't worked for Comcast users since 2011, despite Roku being one of the most prominent Internet streaming devices available. Apparently, it's a matter of priorities? Comcast's argument for being allowed to acquire companies is always that these acquisitions make them bigger and more efficient. So apparently, getting simple TV authentication to work takes Comcast years longer than every other pay TV operator because Comcast is simply too big, efficient and fantastic?

Now, Playstation 3 users have joined the Roku user chorus, asking Comcast in their official forums why they can't use HBO Go, and are being greeted by the same silence Roku owners have enjoyed for years. I'm not sure you can get away with calling this a net neutrality violation (I think the term is mutated to the point of uselessness anyway), given HBO Go on Roku will work if you have Comcast broadband -- but get HBO from another pay TV provider like Dish. Still, it's fairly curious how Comcast's own Internet video and on-demand offerings (which include HBO content) tend to take priority.

The problem illustrates once again how the TV Industry's "TV Everywhere" mindset fails because it winds up taking value away from the user, not delivering it. It's also another shining example of how HBO should shake off its fears, embrace innovation, leapfrog the gatekeepers and release the standalone Internet streaming app everyone has been clamoring for.

Filed Under: cable, hbo go, playstation, streaming, television, tv everywhere
Companies: comcast, hbo, roku

Hollywood Shoots Itself In The Foot Yet Again With Netflix Set-Top Box

from the customers-are-the-enemy dept

When I started reading CNet's write-up of Roku's new Netflix set-top box, I was beginning to think that the movie industry might finally be getting its act together. The price ($99) seemed reasonable, and the subscription rate (as little as $8.99/month) seemed about right. After years of missteps, I thought, maybe they were finally starting to figure out this Internet thing. Then I read this sentence: "Thanks to Hollywood's byzantine licensing system, less than 10 percent of Netflix's 100,000-plus library of titles is available for streaming to the Player." Even worse, only two of Netflix's 100 most popular movies are available for streaming. It's almost as if Hollywood doesn't want its customers' business.

Apparently, three other manufacturers, including LG, are working on competing set-top boxes. They should be careful not to put all of their eggs in the Netflix basket, given that Netflix may or may not succeed in getting the studios to release more of their titles. And as we've said before, the last thing the video streaming market needs is yet another pointless standards battle. What's needed is an open platform that supports free and paid downloads from a variety of different sources. Some of the Netflix boxes will reportedly include DVD or Blu-Ray drives, which is a smart move. Device makers should also be exploring more open content-delivery options, either in conjunction with existing video sites like YouTube, or developing a new, open platform where anyone can share their videos. In the long run, a lot of video business models will likely involve giving away free content, and a company that provides the set-top boxes for delivering that free content is likely to make a bunch of money. That market will grow especially fast if Hollywood continues its campaign to make its content as difficult to purchase as possible.

Filed Under: downloads, movies, proprietary, settop box
Companies: netflix, roku