January 2007 Entries

The big event of the week wasn't even at CES, as Steve Jobs announced the iPhone at the Mac World conference. Then lawsuits commenced.

But there were other things more relevant to the cable industry. One big issue for programmers visible at the show is the issue of multiple platforms. Consumers can already get content on a wide array of devices. Programmers will have to create new strategies, figuring out how to take the content and push it out to many platforms simultaneously, while still figuring out the best way to handle Digital Rights Management.

Sling Media announced a new technology called Clip+Sling, which may address the question of how programmers can tap into the current trend of viewers taking clips from TV shows and throwing them on up YouTube and Google Video. While there are still lots of details to be worked out, to my eye, Clip+Sling offers some intriguing possibilities.

If you follow hi-def TV, you know about 720p and 1080i. Well, 1080p was highly visible at CES. This is 1080p/60 -- that is, 60 frames per second. There doesn't actually seem to be much content available now or in the near future in this format, but carrying such programming may present bandwidth issues.

There was also the HD Camcorder from Panasonic, with 8 GB of storage (about 90 minutes of footage), and set to be priced about $1,500. If consumers start shooting videos on it and then uploading them to the web, this may be another bandwidth hog to keep an eye on.

FCC Chairman Kevin Martin spoke at CES on Wednesday and made it clear that cable operators shouldn't count on getting waivers of the FCC's July 2007 deadline for the set-top box integration ban. Some of the coverage has suggested that this move is a benefit to consumers, but there is a hitch. I refer you to our Talking Points on the Integration Ban:

The cost to consumers is considerable, while the benefits to consumers who would use those boxes are non-existent. A new technology being developed by the cable industry – downloadable security technology – will soon make this debate moot by enabling cable operators to download the system security software to any set-top box or to a DCAS-enabled digital television purchased at retail.

NCTA reacted to Chairman Martin’s speech with a statement:

"The denial of cable's waiver requests would mean that, starting in July, consumers would be paying a new $600 million tax, costing cable customers another 2-3 dollars per month. It is incomprehensible that the FCC would deny these waiver requests at a time when Congress and the Administration have made the digital transition a national priority and are trying to manage the costs to consumers. We urge the Chairman and the Commission to move in another direction on this issue and grant cable's requests to relieve consumers of this potential burden."

DTV panelThe digital television transition is naturally a big issue for the consumer electronics industry, since they make all those hi-def sets. Yesterday, CES held the panel "Get Ready for the End of Analog TV and Say Hello to HDTV." Cable vet Gary Arlen moderated with David Donovan, President, MSTV, NCTA's President and CEO Kyle McSlarrow and John Taylor, Vice President, Public Affairs and Communications, LG Electronics USA, Inc. appearing as panelists. The discussion was remarkable cordial, with all three sectors -- broadcast, cable and CE -- expressing great enthusiasm for our digital future. There are more than two dozen HD programming services that have been launched and, as of June 2006, there were 97 million homes passed by HD service by cable operators.

Peter Stern, EVP, Product Management, Time Warner CableTuesday morning, Multichannel News and Broadcasting & Cable held a breakfast panel on the migration of content to multiple platforms. This issue concerns both operators and programmers, since there are technical issues to be worked out and business models to be built.

The panel included Bill Wheaton from Akamai, Jim Henderson from Comcast, Nick Chakalos from Motorola, Ed Huguez of Starz, and Peter Stern from Time Warner Cable (pictured here). One interesting issue came up when an audience member asked about the future of a media center in the home, that magic box that will control all your entertainment. The two operators seemed a little skeptical about the idea of having just one "box" to handle your content. First, because it creates a weak link; if the box crashes, then you're in trouble. Second, because there are already multiple hubs serving you. Your DVR is a local hub, handling some video, while the headend is also a hub, since it's not practical to put thousands of hours of VOD in the home.

At the Panasonic boothI got a brief chance to walk out on the CES exhibit floor today. As mentioned in a previous post, an announcement was just made about joint testing on an OCAP TV set by Comcast and Panasonic.

Interactive television has been a dream of the cable industry for many years. I'm sure many vets can name of services that have appeared previously as we have headed down this path; perhaps some of you worked on them. OpenCable is working toward creating a common platform for interactive television applications and services.

In the Panasonic booth, you see what was labeled as "High Definition on Demand." The display included an HD-DVR and an Interactive Digital Cable Ready set, both based on the Open Cable Application Platform. The demonstrator explained that Comcast was going to deploy the set-top box this year, with the TV going on sale in 2008.

But there were other noteworthy items on the floor. For example, at the LG booth, there was a display of "2-Way OCAP HDTV," in a Plasma Flat Panel Display. At the Samsung booth, I saw "OpenCable HD DVR."

LG booth at CES Samsung booth at CES

OCAP holds some exciting possibilities and it's interesting to see this play out on the exhibit floor.

A press release was issued this morning that Panasonic and Comcast will begin joint testing on an interactive Digital Cable Ready high-definition plasma television based on the Open Cable Application Platform (OCAP).

Panasonic and Comcast to Join Forces to Test Interactive Digital Cable-Ready Television

Why is OCAP important?

Integrating OCAP middleware into a digital cable-ready television will let consumers access current popular digital cable features, such as video on demand and electronic program guides, without a digital set-top box. It also will create new opportunities for the delivery of next generation, two-way interactive digital cable features like voting, e-commerce and gaming with the television.

For more information about Cable Ready Equipment, see NCTA's issue brief on the topic.

Intel booth at CESThe NCTA Insider, blog of the National Cable & Telecommunications Association, is back once again, this time to bring you news from the 2007 International Consumer Electronics Show (CES) in Las Vegas.

In recent years, there has been much more visible presence of the cable industry at CES, a reflection of the impact of cable’s increasing rollout of broadband products and services.  I was told last night that there are at least 500 cable industry professionals in attendance at the show this week.

NCTA has also sent a number of representatives and I'll be bringing you coverage of CES on this blog during the week.

You can see a few images here of the exhibit floor yesterday afternoon, offering a sneak peek of what will be available when the floor opens later today.  Up top is a shot of Intel’s booth.  Below is part of the Panasonic booth (on the left) and Motorola (on the right).

Panasonic booth at CES Motorola booth at CES

There will be all sorts of devices here at the show that are relevant to cable.  One obvious example is cable’s support of the digital television transition, with more than two dozen programming services now providing HD programming on a full-time or part-time basis, as well as cable operator’s support of the 540 one-way Digital Cable Ready (DCR) televisions, with more than 216,000 CableCARDs provided to cable customers for use in these devices.

As of September 2006, there are 28 million Residential Cable Modem Subscribers.  Here at CES, there are hundreds of devices that can help consumers take advantage of there broadband connections, including digital video cameras that can help you become the next YouTube star, MP3 players, games that let you play others online, and much more.

The NCTA Insider will bring you details from the events and products here in Vegas, so if you’re not here, you won’t miss out.