Current Users Login
Home
Home Intelligence Services Reports Newsletter Samples
spacer spacer Broadband Media spacer Cinema spacer Games spacer Mobile Media spacer Television spacer TV Technology spacer Video
spacer DATA by territory
spacer DATA by territories
spacer DATA by vendor
spacer home
SEARCH Lost password? Methodology & definitions This service & access

Over 400,000 active Cablecards in the US


In March 2008, the NCTA reported that over 400,000 Cablecards have been installed in Unidirectional Digital Cable Ready Products (UDCP) privately owned by cable subscribers. There are currently 580 different UDCPs available to US consumers ranging from traditional STBs (similar to those supplied by the operator) to Integrated Digital TVs (IDTVs) which have a Cablecard slot and digital TV tuner built in. The same report also details that since the integration ban came into force operators have deployed over 4.6m STBs into the rental market with pre-inserted Cablecards, effectively re-integrating the CA system.

On July 1 2007 US government legislation known throughout the industry as the integration ban came into force. The ban demands that the CA components of STBs must be separable from the STB, theoretically ending the Motorola and Scientific Atlanta STB monopoly and improving consumer choice.

Whilst it is too early to comment on the success of the integration ban, cable operators have supplied almost 12 times as many Cablecards to subscribers by pre-inserting them into rented STBs in the last nine months than they have into customer owned-equipment in the last four years.

Our take...
Screen Digest data shows over 8m digital cable STBs were delivered to US cable operators in the nine months since July 1 2007. This means just over half the STBs delivered were Cablecard compatible. With the ban being a legal requirement the majority of future STB shipments will comply.

The trend clearly identified in the NCTA's report is that being a Cablecard only subscriber is, at the moment, an unattractive proposition for the majority of customers. The vast majority of Cablecard ready devices in the current installed base are unidirectional and not capable of two-way communication with cable networks. As a result many of the key features afforded by digital TV such as interactive programme guides and on-demand content (which rely on two-way communication) are unavailable to Cablecard customers. This gives the cable operators a de facto monopoly over the user experience regardless of the ban.

The slow rate of Cablecard only uptake shows that cable subscribers value these features and are willing to spend the extra dollars renting an STB to access them. A Cablecard currently costs around $2 a month to rent with a basic digital STB costing around $5 before the integration ban and $7 dollars after. This additional cost to consumers no doubt covers the estimated $20 dollars separating the CA system adds to STB purchase prices. Increasing availability of Multidirectional Digital Cable Ready Products (which can provide interactive features) could significantly increase the number of Cablecard only subscribers requiring only basic interactive services from sub-$100 STBS. With the current price of more advanced HD and PVR STBs above $500 it may prove more economical for many households to rent these boxes with the current $15 a month rate. Additionally, maintenance and upgrades are available at lower cost through a rental scheme than through retail for consumers.

Given the current pricing structure the majority of retail demand will be for low-tech, low margin, commodity products. Many of the big name manufacturers will find this market unappealing preferring to seek out high-tech, high margin deals with operators doing little to change the current industry status quo.


> Analyst, market intelligence & notices
(9) 1-9 showing
Sony and cable operators agree to support Tru2way in US

published: 05-Jun-08
territories: USA - North America, World
categories: New product/service, Strategy change, Technology deal, Technical development
Daniel Simmons more

Motorola agrees global reseller deal with Widevine secure

published: 07-May-08
territories: USA - North America, World
categories: Strategy change, Technology deal, Marketing deal
Daniel Simmons more

NXP to acquire Conextant's set-top box business secure

published: 01-May-08
territories: Netherlands, USA - Europe, North America, World
categories: Merger/takeover/investment deal, Technology deal
Daniel Simmons more

AMC-14 declared total loss by SES-Americom

published: 24-Apr-08
territories: USA - North America
categories: Technology deal
Daniel Simmons more

Thomson report slashed operating profits in 2007

published: 02-Apr-08
territories: USA, France - North America, Western Europe
categories: Merger/takeover/investment deal, Technology deal, Technical development
Tom Morrod more

Echostar satellite launched out of position

published: 02-Apr-08
territories: USA - North America
categories: Technology deal, Technical development
Daniel Simmons more

Over 400,000 active Cablecards in the US

published: 02-Apr-08
territories: USA - North America
categories: Technology deal
Tom Morrod more Daniel Simmons more

US HD STB experiencing shortages

published: 02-Apr-08
territories: USA - North America
categories: Technology deal
Tom Morrod more

Tivo to release software version of its DVR

published: 29-Nov-07
territories: Germany, USA - North America, Western Europe, World
categories: Strategy change, Technology deal, Technical development
Tom Morrod more Daniel Simmons more

> Reports
None currently found.
> Articles
(7) 1-7 showing
FCC bonanza in spectrum auction secure

Contenders have bid $20bn for frequencies released bythe forthcoming analogue switch-off. Verizon bid the most money, AT&T secured the most licences
published: 23-Apr-08
territories: USA - North America
Ronan de Renesse more

Cable/satellite PVRs sell on price secure

Marketing and consumer awareness have little effect on initial uptake of PVRs
published: 23-Apr-08
territories: Germany, UK, USA - Nordic Region, North America, Western Europe
Richard Broughton more

Top TV makers add internet option secure

Samsung, Sony, Panasonic and Sharp have all showcased IP-enabled television receivers-more than half the new range in Sony's case
published: 22-Feb-08
territories: USA
Eirini Theodosiou more

Free-to-air mobile TV market grows secure

More than 15m people in Asia subscribe to free-to-air mobile TV services
published: 01-Nov-07
territories: Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea. Rep [S], Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, UK, USA - World
Ronan de Renesse more

Broadcasting on the Internet secure

A listing of the online video sites operated by broadcasters or which are displaying broadcast content.
published: 15-May-07
territories: Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Spain, Sweden, UK, USA - Europe, Nordic Region, North America
Tim Westcott more

Rise of high definition TV channels secure

At the end of 2006 there were 106 high definition television channels worldwide. We forecast there will be 250 by 2010, 120 of them in Europe
published: 25-Jan-07
territories: UK, USA, Australia, China, Germany, Italy, Korea. Rep [S], Poland, Sweden, France - Europe, Nordic Region, North America
Vincent Létang more

HD drives consumer electronics secure

HD drives cunsumer electronics Our round-up of developments on show at the Consumer Electrinics Show (CES) in Las Vegas earlier this month puts the emphasis on high definition—notably for television sets and nextgeneration DVD. Convergence is manifesting itself in practice, as US consumer electronics sales post a record 11 per cent rise in 2005.
published: 01-Jan-06
territories: USA - North America
Vincent Létang more Angus Wood more


About Us | Our Analysts | Press Releases | Events | Search spacer

Screen Digest, Head Office, Lymehouse Studios, 30/31 Lyme Street, London, NW1 0EE, Switchboard, +44 (0)20 7424 2820

screendigest © Index
corner