The pay-TV industry has given the United States' Federal Communications Commission (FCC) a proposed plan that would allow over 50 million cable and satellite TV subscribers to get rid of their set-top boxes. Its goal is to convince federal regulators to avoid making bigger changes to the multi-billion dollar industry that would affect cable customers paying for TV shows and video programs.
FCC Chairman Tom Wheeler made a proposal in January that would open the cable/satellite TV set-top industry to new companies. It would also allow consumers to use one device or app to access multiple content providers, according to Business Insider.
The FCC voted 3-2 to move Wheeler's plan forward, and a final vote could take place as soon as August.
President Barack Obama supported Wheeler's proposal. He argued that it was time for the cable industry to make changes.
The pay-TV industry's counter proposal would allow customers to watch programs without leasing a cable box, and instead use apps that could run on devices such as smartphones, tablet computers, and smart TVs. This plan would save them a lot of money. It would also allow cable companies to maintain control of digital rights management (DRM) and advertising channels, according to SlashGear.
The universal search would make watching pay TV easier for consumers. However, cable/satellite TV companies could then use tools such as in-house user interfaces and menus to control advertising and thwart piracy.
Meanwhile, the FCC could then create rules for the new services.
Cable companies presented their plan at a meeting with the FCC last week. It included representatives from Comcast, AT&T/DirecTV, as well as other companies and organizations.
The FCC and cable companies still have a lot of work to do before they reach a final agreement about industry changes. However, the feds are pleased that the cable industry is willing to work with the FCC to reach the goal of its proposal. That is to improve competition and increase customer choices.
The pay-TV box industry in the US is worth $20 billion. Although the rental fees for set-top boxes have skyrocketed 185 percent since 1994, the cost of televisions, computers, and mobile phones has dropped 90 percent.
Here's a video on pros/cons of set-top boxes: