Satellite : Basic Encryption Has New (OTT) Enemy

Boxee recently told the FCC that cable companies should not be allowed to encrypt their basic service tiers. In a presentation to the Commission, the company said if the FCC permits basic encryption, products like its OTT-console would stop working - forcing consumers to use leased STBs, while harming start-ups trying to innovate the video delivery space.
: Fta Files - FTA-GODS.COM Satellite : Basic Encryption Has New (OTT) Enemy

In a company blog post, Boxee CEO Avner Ronen said not only would the rule-making harm his company, but cable is trying to get legislation passed that would prevent 3rd party STB providers from disrupting the industry's lock on video distribution. Cable's "real motivation," Avner says, is to prevent consumers from connecting cable from the wall directly to a TV (or Boxee Box). "You will need to rent a set-top box from your cable provider, pay an extra $5-$15 per month and it will no longer work with your Boxee Box or similar devices."
: Fta Files - FTA-GODS.COM Satellite : Basic Encryption Has New (OTT) Enemy
: Fta Files - FTA-GODS.COM Satellite : Basic Encryption Has New (OTT) Enemy

Not surprisingly, cable doesn't agree, and the NCTA wrote a 12-page response to the FCC saying Boxee's claims "are simply wrong." In the letter, NCTA VP and General Counsel Neal Goldberg says encryption will improve service reliability, increase internet speeds and increase the value of other services consumers want. Further, Goldberg penned an op/ed piece taking the company to task publicly over how Avner's idea would enable all video service providers to compete except cable.

"Boxee should be applauded for their creativity... Instead of telling regulators that its service is a replacement for payTV service, they now seem to be saying their service is dependent on subscription TV," Goldberg said. The company's stance is even "more ironic given that all of cable's competitors - from satellite to Netflix to Boxee itself, already encrypt programming" but cable's desire to do so won't help consumers "at all."

Referring to Boxee as a "competitor" (original quotes), Goldberg said the company is using "patently false scare tactics" by saying TVs receiving basic cable without a STB would go dark. He said the company's "disinformation campaign" is a poor attempt to distract from the reality that a "simple technical fix" exists that would solve the entire issue... the CableCARD. "If Boxee included a CableCARD slot, its customers could access encrypted channels without a set-top." •