Reuters reports on yesterday’s Supreme Court ruling…
The media companies got one on the chin, sort of: The U.S. Supreme court has rejected an appeal by the Hollywood studios and TV networks to block Cablevisions use of remote network-DVR technology, which means the cable company and others may soon be launching it later this year. The media companies have argued that the use of network DVR, where the programs are stored on the cable companys serversin the cloud, as todays lingo would call itand streamed on demand when users request/record it, violates copyright laws.
Analysts have said previously that Cablevisions victory could have seismic implication on the TV industry: cable operators will now be able to deliver these services with much lower capex. And that the new technology could put DVR service in nearly half of all American homes, about twice the current number, thus resulting in a lot more commercial skipping, in turn affecting the networks bottom lines. Local broadcasters will be the hardest hit. More…
Chris Albrecht of NewTeeVee analyzes the potential ramifications of the decision…
Other cable companies, like Time Warner Cable and Comcast, have been on the sidelines waiting for the outcome of Cablevisions case before implementing their own remote DVR solution. Remote DVRs are cheaper for cable companies because they dont have to deal with distribution and installation of boxes in the home. Last year, Cablevision said its remote storage DVR would offer 160 GB of storage, would cost customers $9.95 a month and save the company $100 per customer.
The whole concept of video on demand is in the midst of a radical shift. Between remote DVRs, which should begin rolling out this year, and the TV Everywhere campaign, which will expand the availability of cable programming online there will be more options than ever for viewers to consume contentand more control than ever handed over to the cable companies. Full article…