-
Cisco Divestiture Could Be Final Blow for Traditional Set-top Boxes
It's no secret that sales of traditional set-top boxes (STB) have been under huge pressure for a while now as IP delivery becomes more integral to pay-TV operators' technical architecture. But yesterday's news that Cisco, which is one of the biggest providers in the world of traditional STBs, is looking to divest its big STB plant in Juarez, Mexico, could be a final blow for the beleaguered devices, accelerating pay-TV operators' IP plans.
Cisco has been getting hammered from all sides recently and the divestiture would no doubt have much-needed short-term financial benefits (coupled with an imminent layoff). The larger context behind the move is more significant: pay-TV operators want to gain more flexibility in delivering services to subscribers while reducing their capex. As more pay-TV subscribers turn to their iPads, Rokus, smartphones and gaming consoles for their video entertainment, pay-TV operators need to run harder than ever to innovate.
And that's what appears to be happening, whether it's Comcast's Xcalibur project, Time Warner Cable's and Cablevision's streaming iPad apps, numerous TV Everywhere initiatives, plus various hybrid set-top box deployments around the world. As TVs are increasingly connected to the Internet, the pay-TV operators' imperative shifts from optimizing linear video with proprietary technology (a key role of the traditional STB), to leveraging the new device ecosystem to deliver the best suite of services possible.
All of this leaves the traditional set-top box as the odd man out. No question, these boxes will be in subscribers' homes for years to come as pay-TV operators' efforts to switch them roll out. But the glory days of the STB are in the past, something that Cisco knows that better than anyone. By severing its STB manufacturing, Cisco is helping accelerate the shift to an all-IP world.
Categories: Cable TV Operators, Technology
Topics: Cisco
Connect with VideoNuze
Exclusive News Roundup
- Roku, X Games Strike Streaming Deal The Wrap
- YouTube Teams With CAA to Let Talent Identify - and Pull Down - AI Deepfakes of Themselves Variety
- Comcast targets early 2025 for regional sports networks on Peacock The Desk
- Here’s a Hollywood Twist: Streaming Success Runs Through Theaters NY Times
- Google DeepMind unveils a new video model to rival Sora TechCrunch
- YouTube TV Raises Monthly Charge 14 Percent, to $82.99 NY Times
