End Near For CATV

Before we begin this discussion it's important to define what 'CATV' stands for. Many believe it's a abbreviation for 'CAbleTV. Actually it's a acronym for 'Community Access Television' or 'Community Antenna Television'. It's important to know this before we can discuss why CATV is near certain to go away in the future.

What Today's TV Will Become In The FutureI will go into greater detail explaining how this will come about later. In the not too distant future all of today's televisions (except for smart TV's) will be rendered useless. Today's current cable TV providers will transition themselves away from providing the traditional RF TV channels. Instead nearly all will become internet providers offering VOD (Video On Demand) services only.

Viewers will rent or be given converter boxes that can be used for today's current TV's that are not internet capable (smart-TVs). Instead of switching channels to watch a program, users will select entirely from VOD offerings. Some will be free. Others varying in price. At the end of each billing cycle customers will be charged for each program they watched that month. In some cases customers may order up a VOD package deal, like let's say for an entire season of their favorite program. Some viewers already buy DVD's of a program's entire season. Instead cable operators can make the same offer by streaming them via VOD instead.

In other words future TV will be a 'pay-as-you-go' proposition. The days of free over the air broadcasts will be phased out. That's the short explanation.


HERE ARE THE DETAILS
Some of network giants already positioned themselves by buying up cable companies. Recent court decisions (some favorable, others not) are pushing TV execs towards delivering their products via VOD. These same entertainment giants also own movie & TV production studios. Therefore they not only have an interest in marketing their networks and the TV stations they own, but also using VOD as way to deliver their other entertainment products all in one place. In other words they can control the entire industry from point of manufacture to delivery in each of the individual homes.

Court Actions
Aereo TV offers over-the-air broadcast to customers. Unlike CATV companies who are forced to pay broadcasters Aereo exploited a loop hole. I've already told you it was important to understand what CATV stands for 'Community Antenna Television'. All the laws are set up for cable companies who rely on one antenna. Aereo on the other hand sets up individual antennas for each one of their customers in select cities. They stream only a over-the-air TV station through the internet to one individual customer at a time. Since they are not legally defined as a CATV company, they so far have prevailed in the courts from having to pay broadcasters. Broadcasters are screaming holy hell. This issue is now headed before the Supreme Court

In response these huge companies threaten to pull the plug on the over-the-air TV stations they own where Aereo is operating. Keep in mind this wouldn't cripple their locally owned TV stations because the broadcasters have been maneuvering themselves by buying up cable systems. This still allows them to deliver their content.

While this has been playing out in court behind the scenes there's been another courtroom drama taking place. It concerns 'Internet Neutrality'. This time the big boys came out ahead in court. Last Tuesday (01/14/2014) a DC Circuit Court ruled the FCC has no authority to enforce 'network neutrality' rules.

I'm not going into great depth explaining what this means. Simply put under this ruling internet providers can control the speeds of internet content provided to their customers. Website partners or customers could be assigned tiers of service by how much they are willing to pay. Take for example Comcast Cable (NBC) offered a VOD for a TV series or movie they owned or were partners with. Then let us suppose 'Amazon' offered the same. Under this ruling it would allow Comcast to throttle up delivery speeds for their VOD and throttle down Amazon's.

What this could mean for an individual customer is even if they are paying for one speed they may not be able to watch YouTube at the same speed as a customer who pays more for that particular tier of service. In essence.. different sites... different levels of service depending on both what the operator of the website is willing to pay and the internet customer.


SYNOPSIS
As you can see the industry through court maneuverings and buyouts have been moving in this direction for sometime.(1) Eventually you will need a converter box that will only stream pay-as-you-go (VOD) programming.

(2) Over-The-Air will go away in many cities (if not all).

(3) Just because someone pays for a VOD doesn't mean they will be free of advertisements. Free of paying for a rental unit. Nor paying a basic fee for the service. In addition having to pay more for one show that is more popular then a other.Networks have already taken many of their new shows off of their locally owned over-the-air broadcast TV stations. Choosing instead to air them on CATV channels they also own. Which in many cases are carried on the very cable company they now own as well.

Hence CATV, as we now know it, may very well go the way of steam locomotives and horses in the not too distant future.