Cable Technology Feature Article
August 04, 2008
DVR Ruling: Good For Web Video and Cable
By Rich Tehrani, CEO, Technology Marketing Corporation
This past weekend, the DVR in my house started to make an odd and intermittent buzzing noise. Suffice it to say it needs to go back to my cable operator. As I recall, the last time I had a DVR problem, a technician was sent to my house to bring a new box.
Having to deal with a truck roll every few years for a customer with one DVR doesn't seem like a smart proposition for a carrier. There just isn't enough profit margin to justify this cost.
The good news for Cablevision, the company providing service in my area, is that an appeals court just ruled that the company’s network DVR service can be treated the same as a customer premise equipment (CPE) DVR — a DVR with a very long “cord.”
Having to deal with a truck roll every few years for a customer with one DVR doesn't seem like a smart proposition for a carrier. There just isn't enough profit margin to justify this cost.
The good news for Cablevision, the company providing service in my area, is that an appeals court just ruled that the company’s network DVR service can be treated the same as a customer premise equipment (CPE) DVR — a DVR with a very long “cord.”
Media companies fought and won a court case which blocked Cablevision from providing this type of service. In April of last year, Cablevision decided to appeal that decision. The company’s win means that DVR usage will now spread rapidly as the cost to provide such service will likely drop.
The decision also puts TV advertising at greater risk, since more people will soon be able to skip commercials.
The hidden winner here is online advertising. If this ruling holds, expect a rapid decrease in the importance of TV to advertisers and expect content providers and networks to push Web video to customers and advertisers. After all, at least on the Web companies can potentially control the ads that are shown.
This ruling is also a win for me as my next DVR will likely be “in the cloud. ” It probably would be a good idea for me to subscribe to the service before the ruling is overturned by the Supreme Court…
The decision also puts TV advertising at greater risk, since more people will soon be able to skip commercials.
The hidden winner here is online advertising. If this ruling holds, expect a rapid decrease in the importance of TV to advertisers and expect content providers and networks to push Web video to customers and advertisers. After all, at least on the Web companies can potentially control the ads that are shown.
This ruling is also a win for me as my next DVR will likely be “in the cloud. ” It probably would be a good idea for me to subscribe to the service before the ruling is overturned by the Supreme Court…
Rich Tehrani is President and Group Editor-in-Chief of TMC. In addition, he is the Chairman of the world’s communications conference, INTERNET TELEPHONY Conference & EXPO (ITEXPO (News - Alert)). He is also the author of his own communications and technology blog.
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