An agreement between Sony and several cable companies could render the familiar set-top box obsolete. Sony this week agreed to develop “plug and play” TVs that do not require a cable set-top box to access hundreds of stations and pay-per-view services. The agreement was made between the consumer electronics giant and Comcast, Time Warner Cable, Cox Communications, Charter Communications, Cablevision Systems and Bright House Networks — six companies that serve more than 82% of cable subscribers.
What it means for Cisco — specifically, the Scientific-Atlanta piece of Cisco, which is one of the leading makers of cable set-top boxes — is unclear. Other TV makers might still require a set-top box. Or Cisco could offer another box — say, a home router or gateway — that integrates TV and interactive video functionality along with switching, routing and mobility features. This would essentially be a set-top box by another name, with added functions.
Either way, it appears the set-top box as we know and love? it is going to become extinct. The implications for Cisco’s Scientific-Atlanta business will be profound.
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