The digital cable deadline

Hardly anyone's noticed, but July 1st marks beginning the FCC's mandate that all digital TVs 36 inches in size and larger sold be "Digital Cable Ready" and for all the cable companies to be prepared to deliver HDTV directly to these digital cable ready TVs without requiring the use of a set top box (kind of like how you used to be able to with analog cable and an analog cable ready TV). It's a mess to sort out, so we asked Engadget pal Stephen Speicher to give us the download on what this all means and how some of the cable companies are responding:

Have you noticed Comcast pushing VOD (Video On Demand) in your area?  I have.  TV commercials tout the benefits of VOD: "Watch what you want to when you want to."  Local radio personalities give endorsements.  You can almost hear the faint chants of "Must roll out VOD" coming from the Comcast buildings.  Why VOD?  Why now?  Certainly some of it has to do with the progression of technology.  However, methinks that much of the urgency has to do with the little-publicized July 1st deadline that is swiftly approaching.  This is the date that the FCC (working with the cable operators) chose to mandate the adoption of an open standard for digital cable.

In theory, on July 1st customers should be able to request from their cable companies smartcards (much like the ones that are inserted into DirecTV boxes) that work in any cable box or digital television that is compatible with the new standard.  Customers will be able to use that card with the equipment of their
choosing.  No longer will consumers be forced to use the anemic (and proprietary) cable boxes provided to them by their cable companies.

For example: some people might choose to altogether forgo a cable box (and the $6+ fee that accompanies it). 
These people would place the cable card directly into their digital televisions (like the Sony TV pictured). 
Other people might want a box with the latest bells and whistles.  Those people would stick the card into boxes like the Pioneer. Opening the cable-box market should pave the way for a host of exciting new options. Many manufacturers have already started demonstrating their wares.
Other players, like TiVo, are surely evaluating the market.  Either way, this should be a huge victory for consumers.

There is a catch, however, and this brings us back to VOD.  So why are cable companies pushing VOD?  It's simple; the digital cable standard only mandates that one-way communication be compatible.  In other words, the card must be able display the signal sent from the cable company to the TV. VOD,
on the other hand, requires that signals be sent back and forth to the cable company.  Ergo, if you want VOD, you need to stick with your cable company's stock equipment.  I expect that a version of the following will be used by Comcast CSRs to discourage customers from switching:

"You understand that you won't be able to access all the incredible content available to our VOD customers – are you sure you want that card? ..."

Cable companies are reluctant to give up control and they are looking for a way to differentiate themselves from their open standard competitors.  VOD is such a feature.

It should be noted that very few people expect that the July 1st deadline will produce more than a good-faith start date.  Still, it's good to see some progress.

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