One of the most striking aspects of the current debate over the FCC’s proposal to “unlock” the set-top box is how shabby the public arguments are on all sides.
Chairman Tom Wheeler, who cooked up the idea, hangs his case for requiring pay-TV providers to disaggregate essential programming, navigation and entitlement elements of their service for the convenience of third-party device makers and developers on the alleged cost to consumers of renting a set-top box from their provider every month, which the proposal pegs at $231 a year (a figure others dispute). Allowing consumers to bring their own device will save them money, according to Wheeler. The White House made a similar argument in endorsing the proposal.
Set-top box fees are surely excessive, like the cost of pay-TV service itself. But they’re also arbitrary, just like a lot of other line items on the average cable bill. Broadcast fee? Regional sports fee? How are those calculated? The idea that requiring operators to eliminate one line item on a monthly bill full of arbitrary fees and prices will translate into meaningful cost savings to consumers seems far-fetched.
For that matter, the idea that letting consumers buy their own set-top box would necessarily result in significant savings also seems far-fetched. A TiVO Roamio goes for $600, plus $10 a month for the guide. Read More »