Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Cable boxes could be rendered useless by gaming consoles

By | September 29, 2011, 10:44am PDT

Summary: Microsoft is reportedly adding services from two major cable providers to its Xbox Live line-up, which begs the question: Do we even need cable boxes anymore?

Microsoft is reportedly negotiating deals with approximately two dozen providers of music, sports, movies and TV shows in the United States and Europe for the purpose of expanding its Xbox Live streaming service, according to Bloomberg.

That announcement could come by next week (and could coincide with the potential debut of a cheaper Zune Music Pass). What’s more intriguing is that Bloomberg says that Microsoft is in talks with Comcast and Verizon to bring their paid-television services to the Xbox as well.

If that turns out to be true, pretty soon, cable boxes could end being set aside in place of gaming consoles. After all, who wants two boxes and more wires when they could just have one?

Gaming consoles are on track to become the center of the home entertainment system because they alone (at least for now) have the power to offer consumers HD and advanced gaming, movies, photos and more all in one compact system.

Devices such as the Xbox 360 and PlayStation 3 (as well as set-top boxes like Roku and Apple TV) offer an incredible amount of video content, whether it be new or old. That has been made possible thanks to apps from the likes of Netflix, Hulu Plus, Vudu, and most of the major sports leagues, among others. Now, if you could get live, cable TV on one of these systems as well, then that just completes the package.

Of course, this isn’t exactly happening yet, and there are a few obvious roadblocks.

First, if Microsoft really does bring on Comcast’s Xfinity TV service and Verizon’s FiOs platform, users would have to prove that they are already pay for these subscriptions, which suggests that that they still need to have the cable boxes — at least for the time being unless Microsoft announces that they can buy subscriptions directly through Xbox Live.

But then there’s another barrier — you’d have to pay for the Xbox Live service, which ranges in price based on monthly, quarterly and yearly rates. So this route definitely wouldn’t be cheaper, and it won’t clear up the clutter of boxes on your TV stand immediately. But it is pointing in the direction of consolidating content sources in the living room.

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Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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vmqkbao 39 oqi
cmakrekdw52-24379031780859278557350245107593 25th Nov
jaalhz,wolmamkm58, kpkqz.
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Not gonna happen
unredeemed 29th Sep
Cable companies like their strong hold on customers. They will NOT relinquish cable boxes for a long long time. Cable companies have become telco's which are notoriously slow to adapt, upgrade, and innovate.

Maybe we'll see something solid and reasonably functional in 3yrs, and not limited to a specific test region. Then in yr 6, we'll see some market adoption...
But the world is going to end in Dec 2012, so who cares?
@unredeemed
>>But the world is going to end in Dec 2012, so who cares?
LOL. grin
@Rama.NET I think it's science fiction.
oyun
@unredeemed
Yeah, according to Al Gore we're all doomed in 2012 and he's been right about everything so far... Right?
@unredeemed Cable companies have already recognized the threat and have responded by creating bandwidth limitations and charging prices (for the same service) that are 2-3x higher than they were 3 years ago for anything that is streaming capable. I should know, as I tried to renew a contract with my cable company and they literally went OVER DOUBLE the cost of what I originally had for the same internet service. Comcast blows (figured I'd name drop).

The reality is that we are already seeing a rising shift in the way people acquire their media. I no longer go to a store to buy an album, I buy the mp3 from Amazon. I no longer go to Blockbuster for a DVD, I purchase/rent it from Vudu. I do still subscribe to Satellite, but I lived the past two years with nothing but Netflix. Netflix is dying because the content providers don't want to play nice, but some big dogs are looking to move in (Microsoft/Amazon), and the cable companies are just going to shift their disgusting pricing on TV to internet.

XFinity... wow... a name change where everything jumps to double the price. Most people don't even pay attention to the shift that's happening, but sooner or later, you'll find that you are paying just as much for internet as you used to for cable. That is, of course, unless we start getting some more competition in the high end internet arena. What ever happened to "Google high speed internet?"
@thoiness
Comcast doesnt have contracts so not sure what your talking about but yes they do rate hike as Originally I signed up at $99 a month for about 500 cable channels 10Mbps internet and unlimited phone no long distance. I now pay about $135 a month same services except my cable internet speed has now gone to 50Mbps and I know can watch all my cable channels I subscribe to via my cell phone tablet or anywhere I have internet connections. Im in the Chicago area..They have though added limits to bandwidth as I was unlimited but now I get throttled at 500 GB a month and they do monitor downloads as I have gotten my warning letters about certain movies that studios felt lets say not happy seen downloaded lol.I have an extra pc tower hooked via hdmi to my 65 inch living room tv so i have full internet acces with wireless keyboard and mouse so extra content and such along with gaming is full on ready.
@unredeemed +1 For the World Ending
I have a problem with this line.

"So this route definitely wouldnt be cheaper, and it wont clear up the clutter of boxes on your TV stand immediately."

Xbox live is 60 dollars a year (if you buy it a year at a time, anyways. Not to mention a number of deals you can get, like Amazon which is currently selling 12 months for 48.). Basic Cable from Comcast here in Arkansas is 45 dollars a month. Add 8 dollars on top of that if you want HD, and even more on top of that if you want a DVR. It would be way cheaper if I could totally switch to Xbox Live for television.
@Aerowind

Keep in mind that you still need an ISP connection to do this. With Comcast, they charge MORE for Internet when you don't have the TV subscription. Like $10 a month more for slower service. This leaves us with the only other option of DSL and even though naked DSL is supposed to be available, try ordering it from your local telco and get the run around or hard sell for a phone line.
@cowboys2000 : Two contrary points:
1. Comcast is offering Internet only at my location for LESS than if I include cable - Introductory price of $15 - and goes up to $25 the second year.
2. I know several folks in my area who have naked DSL, and had no problem at all getting it.
OTOH, it really does depend on your location and provider(s). Verizon has been generally a lot less cooperative in my "alternate location" than AT&T has proven to be in my "major location". YMMV
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RE: Cable boxes could be rendered useless by gaming consoles
LoverockDavidson_-24231404894599612871915491754222 29th Sep
I'm all for this. Right now I'm being charged $7 a month for a cable box I didn't want. When I changed to a new plan they gave me the box so I told them I didn't want it and will hook directly into the tv. They told me I had to get the box with that package.
We don't need cable boxes....but the cable companies do.

It would be a huge dent in their $ gross income to stop leasing boxes.
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$17 a month in my case
jrf2027@... 29th Sep
@eunjam - I recently built an HTPC out of an unused box I had sitting around by adding a decent HDMI video card ($50), a 2 TB hard drive ($60), and a CableCard tuner ($150, two tuners). Throw in a ClearQAM card I had sitting around, and I have a DVR with three tuners and approximately 300 hours of HD storage that passed the wife approval test. My cable bill dropped $17 this month just by returning the cable company's DVR with its laughable 12 hours of HD storage. $20/month for a DVR, or $2/month for a CableCard? Now you know why the cable companies had to have rules forced upon them to even the playing field.
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@eunjam

Nickel and Dime Nickel and Dime...is the way corporations work these days. You and I bend over and they reap the benefits! I propose they you pay for what you use. If I only watch 48hrs in a month then I pay $5. I pay a crap load to Direct TV about $100 a month on avg and I probably only watch about $30 worth.
You know, if the price was right I'd dump my expensive cable for this, especially if it included the XBL sub. Maybe this is the beginning of the end of traditional cable companies.

POLL: Would you subscribe to an Xbox TV Service?
Vote: http://www.wepolls.com/p/3206376
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re:
iwdy23 6th Nov
When you find the girl wear the kind of ugg kids bailey button stand there and look at you for a while,tell us the detail.
0 Votes
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DOA!
The Linux Geek 29th Sep
won't be adopted unless it runs on Linux.
Nobody trusts M$!
@The Linux Geek Nobody trusts Microsoft? If that's true, why are they selling so many XBoxes or copies of Windows and Office?

The average person doesn't even know Linux exists.
Wow, lots of M$ a$$ kissers here. Anyway I'll stick to cable box as will many others - gaming does not appeal to the majority of people out there!
@champions_league

This is just piss poor logic. The first thing you have to understand is that the Xbox 360 is the best selling console in this very region the last 14 of 15 months (by a huge margin). The US is now considered Xbox country. MS has also been selling Xboxes to both casual and NON GAMERS due to Kinect and its media functionality (PC streaming, Facebook, video and party chats, Netflix, Hulu, ESPN etc). These people already use their Xbox for entertainment other than gaming and Live TV would only enhance that. Like the author said, why switch back and forth between cable and console when your console can already do it? We as consumers don't want many boxes under our TVs taking up space and dealing with all the cable wire and channel inputs that come along with that. The more functionality we can fit into a single box - the better. If MS can provide me TV I already pay for in a better box that's also better integrated (Xbox Live), then sign me up.
@timotim
I with you there. I already have an XBOX but I don't have a live subscription. I've just been using it for casual gaming every so often to just blow of steam after work. If I can lose the Comcast cable box that would be just fine with me.
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Wow, lots of anti-MS nut jobs here.
William Farrell 30th Sep
@champions_league

Stick with your cable box. Better yet, go use it now. happy
@William Farrell What did that have to do with this particular thread. I don't see anyone above you mentioning Microsoft?

I will state, however, that I don't see how this could work to save you any sort of money, or be that practical, especially with the 250GB limitation Microsoft puts on their boxes. I use that storage for game purchases, etc, and it doesn't add up to a heck of a whole lot in the long run. Using it as a DVR would really exploit this limitation. I guess you could access the on-demand crap, but still, that's not "that" exciting still. I hate Comcast and their price gouging anyway, so a mention of a partnership for content doesn't excite me all that much.
@thoiness

That's because your not thinking about other solutions MS has in the works that will also debut in the same system update. Features like SkyDrive cloud storage that will let you store content in the cloud to pick up from any other box after a log in. Or the new Devices feature that coming to both Xbox and Windows 8 that allows your Xbox to talk to other devices like a PC to use it for content playback and storage. The 250 local storage is just the beginning.
I have Dish Network HD service. It's 100x better than the crappy Time Warner cable service I had to deal with for many years. It's about $90 a month for 200 HD channels two DVRs. (one dual DVR which seperatly outputs to one HDTV and one SDTV. Meaning It's like having two seperate DVRs in one. I also have a Solo DVR for HD output to HDTV in a bed room. Three total TVs only two physical boxes. Not even Direct tv can do that.)

Still after all that. There are still a lot of times where there is nothing to watch.

Netflix streaming service has been awesome. I always have something to watch. They don't display all they have to offer on the main splash screen, so it's best to search for the show you are looking for.

It's true that they don't got the hard hitting movies on streaming, however it's harder to get licencing rights to stream a movie than it is to ship out a DVD. Since netflix alows for unlimited acess to movies for only 8 buck a month means that the service fee is very very reasonable for what they offer.

VUDU is also a great service for renting movies in full HD. It's way beter than Zune or PS Network. The prices are the same. Stuidos want to make as much money as they can before alowing netflix to stream it.

It's going to take time but when TV
I have been playing games on a PC since Blizzards shareware version of Warcraft in 1994. Fans of Blizzard software have no need a of a gaming station since non of the multi-player games from Blizzard will run on them. That said I love my Logitech review and vip722k receiver. Since Dish Network purchased Sling I can watch my Dish Network tv anywhere on a PC or Smartphone, at no additional cost. Plus I can add an external hard drive for additional recording space. Through on a Logitech review and you have a complete entertainment system. With the purchase of Blockbuster and the ongoing demise of Netflix, my Dish Network gives me a complete entertainment system in HD. Don't guess I'll ever need a PlayStation or an X Box, because I game in Eyefinity anyway.
In the UK we have sky player on the xbox 360 live tv /sports and vod movies, its great having it in another room
by smartphones for gaming.

So are you really saying that cable boxes could be rendered useless by smartphones?
Seriously? Who wrote this, my 12 year old neighbor?
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U-verse already uses Xbox
skorecki 30th Sep
I'm in the middle of making the switch to U-verse and saw that you can already replace a cable box with an Xbox. To bad I don't have an Xbox.
http://www.att.com/u-verse/explore/xbox-receiver.jsp#fbid=myeavipQVBm
@mav1984

this. You guys are arguing after the fact. As mav pointed out here, you can already use you 360 to watch cable tv.
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Bye bye Scientific Atlanta
dowlingm 30th Sep
God I hate my 8300HD and its inability to play nice with HDMI. But it's owned, not leased, so Rogers say "not our problem". Plus I understand cable boxes aren't exactly "Energy Star" standouts.

There was a similar rumour about AppleTV assuming Cable Box functions. I would have bought one in a heartbeat if it turned out to be true.
But, not all cable subscribers have or want game consoles. And there are many more cable providers than "the major two" mentioned. So, if it ever does happen I think it is a long way away. Urban locations even have multiple choices, but most rural areas have no choice at all.
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What I think people are forgetting is that the cable companies don't necessarily own the channels. They have to sign contracts with the channel providers & owners to be able to broadcast them. I know it's been big news in my area whenever TimeWarner (the major company here) "discontinues" a particular channel because the contract negotiations fell through...& their competitors always use it as a selling point for local ad campaigns.

They'll have to weigh the benefits of the 2 approaches, however. If they provide it as a streaming feed via XBox Live, they're dependent on the consumer's ISP connection... which could then be affected by "throttling" or even data caps. Not to mention Microsoft then has to start charging for the channel access -- those channel contracts will cost them millions, they're not going to provide it for free. On the other hand, hooking the XBox up as an STB will require adding a coaxial cable connection to it -- the TV channel feed comes to the STBs via coax, not Ethernet or wireless -- something that current XBoxes don't have. Maybe they can get an add-on that will accept cable-cards, along with an appropriate "channel" to read the signal...otherwise you're looking at a major upgrade/revision to the design.

There's one problem with the stream of "live" channels, though. Channel providers (i.e. SyFy, CNN, etc.) like going through cable companies because they have dedicated networks -- even the whole "watch shows from your DVR on your PC/smartphone" requires you to log into your DVR with a special code the DVR provides you on the TV, but you can still only watch shows previously recorded. And current "streaming" offerings (including the premium network offerings like HBO Go) don't allow for streaming of the shows as they're being broadcast. Hence why even sites like Hulu Plus make you wait at least a day before watching the new episodes.
Yeah, I want more game company's with my personal information..Anyone ring Sony world and their last fubar ??? The more power any ONE company has, the more it cost and the less service you get.SO STOP AMERICA.GROW UP, you DO NOT need the latest and greatest everything ,I said it before and I will repeat it..The AMERICAN CONSUMER HAS GOT TO BE THE DUMBEST ON THE PLANET..Oh give me another master.please make me stay on wait longer PLEASE MASTER..
Cable boxes have been obsolete since at the very least 2000. The fact that you need a separate box for blu-ray, cable, satellite and gaming is just retarded when usually not ten meters away there's a computer that can do all of these at once without any trouble other than screen real-estate... and even that's solvable if televisions supported streaming media through wi-fi, like they should have for at least six years now.
Gee Rachel, do you think EVERYONE has a game box?
Video game consoles are already obsolete. Have you seen OnLive? You can play modern video games on ANY modern computer or even a $50 console device. The games are in the cloud and the video feed is streamed to your home.

If anything replaces a cable box I think it will be Apple TV - probably the third generation. It currently sells for $99, but I think they'll bring the next version down to $50. Maybe even FREE with an iTunes video subscription. It would also have the potential to kill the console game business. It's basically an iPad without the screen.
0 Votes
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vmqkbao 39 oqi
cmakrekdw52-24379031780859278557350245107593 25th Nov
jaalhz,wolmamkm58, kpkqz.

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