One less remote control in the living room?
Last Updated: Wednesday, May 28, 2008 | 5:54 PM ET
CBC News
Cable set-top boxes may soon be a thing of the past as providers are agreeing with TV makers to have built-in receivers. (Matt Rourke/Associated Press)A move by U.S. cable companies to ditch set-top boxes — and an extra remote control in the living room — could expand into Canada soon, according to the nation's largest television provider.
On Tuesday, Sony Electronics Inc. and six of the biggest U.S. cable companies agreed to replace set-top boxes, which are needed by consumers to receive television signals, with a new system that would be built into television sets themselves.
Toronto-based Rogers Communications Inc. on Wednesday said it was examining the possibility of following suit, and could do so soon. The boxes would be replaced by a card inserted into a cable-ready television set that would receive the signal and allow for two-way services, including pay-per-view movies.
"This is a good news story for cable and for customers," said David Purdy, vice-president and general manager at Rogers. "We stay pretty close to the U.S. guys, so it wouldn't be that far off for us if it makes sense in the States.… If it's good for the customer and for us, we could make it happen pretty quickly."
Eliminating the boxes would make it cheaper for Canadian cable companies to provide service to customers since they subsidize the cost of the devices.
Officials at Canada's second- and third-largest cable companies, Shaw Communications and Videotron, could not be reached for comment.
Six of the biggest U.S. cable companies, providing service to about 82 per cent of cable subscribers, have signed on to the agreement, including Comcast Corp., Time Warner Cable Inc., Cox Communications Inc., Charter Communications Inc., Cablevision Systems Corp. and Bright House Networks.
The U.S. cable system has operated somewhat differently from Canada's. Consumers in the United States have been able to buy or rent the boxes from competing manufacturers, which led to the development of the cable cards. Subscribers inserted a card from their cable provider into their boxes in order to get a signal.
In Canada, the boxes are supplied by the cable companies themselves, so no card system has developed.
Old U.S. system brought complaints
The card system was never popular and was the source of frequent complaints from U.S. subscribers of technical problems.
Consumers would still need the cards for the new design, but the glitches should be fixed, the NCTA said.
The association also said it hoped other television manufacturers would agree to the same system.
Purdy said it is inevitable that other manufacturers will follow Sony's lead.
The U.S. move was made in response to a potential action by the Federal Communications Commission to impose two-way standards on the industry.
Canadian providers have not had the same technical problems and therefore have had no similar regulatory pressure, Purdy said.
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