CableLabs has certified two tru2way-enabled CableCARD HDTVs from Panasonic, paving the way for them to be available to consumers this holiday season. The two models sport 42″ and 50″ HD displays. This is an important turn around from June, when Panasonic reportedly failed in their first tru2way certification attempt.

However, even if consumers can get their hands on the sets, there is no guarantee that they’ll be able to access tru2way content immediately. The cable industry has pledged to implement tru2way across their networks by July 1, 2009 - except for Charter which has until July 1, 2010. So early adopters may wish to check with their local MSO to see if tru2way support is available before jumping on these sets, or they may find themselves stuck with unidirectional CableCARD features until tru2way support is rolled out.

From Light Reading’s Cable Digital News.

In a filing yesterday with the FCC on the current status on CableCARD deployments the NCTA revealed that there have been a total of over 374,000 CableCARDs deployed for use in Unidirectional Digital Cable Products (UDCPs), such as the TiVo HD, by the ten largest cable MSOs, which cover roughly 90% of US cable subscribers. That may sound like a lot, but in their last filing 90 days ago in June, they reported over 372,000 CableCARDs for the same ten MSOs and 90% subscriber base. That implies that only 2,000 CableCARDs have been deployed to UDCPs in the past three months by the top 10 cable MSOs - combined. That’s nothing. It would also make me wonder a bit about the sales of the TiVo HD, since I’d expect nearly all of those to have at least one M-Card CableCARD.

That is, of course, if the numbers are true - and they may not be. See the table below and especially the first footnote¹. Comcast’s numbers for September are estimated to be 10-15% lower than actual due to an internal error. We could be looking at an increase of more than 34,000 users instead of only 2,000!

While 34,000 would certainly be better than 2,000, it still isn’t really setting the world on fire. Maybe the M-Card is a ray of hope in those numbers - if customers who previously used two S-Cards are trading them in for a single M-Card on devices like the TiVo HD, it would result in a lower cumulative number. Still, I don’t expect that’s a huge number either.

This is not to say that the total number of CableCARDs in use is that small, not at all. Since the FCC’s ‘integration ban’ went into effect on July 1, 2007, forcing cable MSOs to begin using CableCARDs in their own STBs, those same ten MSOs have deployed over 7,800,000 CableCARDs in their STBs. So in less than fifteen months they’ve deployed more than twenty times the number of CableCARDs as have been issued for 3rd party UDCPs in the four years they’ve been available.

The integration ban was supposed to force cable MSOs to ‘eat their own dog food’ and thereby improve support for CableCARDs. The idea was that this would help foster the overall CableCARD market. Better support from MSOs would lead to more products, which would mean more 3rd party UDCPs in the field. For the most part, this hasn’t happened.

Why not? Well, I think I can sum it up in one brand name: tru2way. Starting late last year, and getting an official launch at CES in January, OCAP became tru2way and marked a push to get consumer electronics companies on board. Then starting with Samsung in May, followed by a larger push by Sony later that month, CE vendors started jumping on the tru2way bandwagon.

What does this have to do with slow CableCARD adoption? Well, these same CE vendors have held off on releasing UDCPs while they work on tru2way-enabled devices. Why invest in developing and marketing a unidirectional product when you’re going to obsolete it with a two-way product in a year? The first tru2way products are starting to trickle out, and there will probably be a bunch of them on display at CES in January. So I think the push for tru2way was a major contributor to lax CableCARD pick up. Vendors just haven’t been releasing CableCARD-enabled products so there aren’t many options for consumers, which naturally means not many cards are being deployed. Really the only major CableCARD product out there right now is TiVo. CableCARD TVs are thin on the ground. CableCARD-enabled Media Center PCs have had anemic sales. And Digeo outright canceled their Moxi CableCARD HD DVR.

CableCARD was slow out of the gate, and by the time MSOs had the infrastructure worked out vendors were already looking toward round two with tru2way and they just decided to sit round one with UDCPs out entirely. The deployment of SDV and the need to develop a Tuning Adapter, and to support it, was very likely a factor in that as well. I don’t expect to see any real pick-up in CableCARD utilization until a sufficient number of tru2way devices are available to consumers, and then I do expect to see a real uptick.

The filing also has information from several MSOs on their CableCARD pricing and install practices. To compare June to September:

¹Comcast states that their September number may by low by 10-15% due to internal reporting errors.

The count for this reporting period of CableCARDs installed in one way retail devices in active customer homes is estimated to be 10-15% lower than the actual number due to internal Comcast reporting errors that are the result of an internal Division reorganization during the reporting period. The next quarterly report will more accurately reflect the actual count.

Since Comcast has such a large installed base this could be the reason for the seemingly small total uptick. The other four combined yield an increase of 3,429. Comcast’s apparent drop of 1,383 drags it down. But if they’re short just 10% they would actually have an increase of 20,334 users. And 15% would mean an increase of 31,192! So we’d be looking at a total increase of 23,763 to 34,621 - rather more than around 2,000. And that’s just from these five MSOs.

²Comcast allows self-installs in at least some areas - 68% used truck rolls, 32% were self-installs.

³First card is free, fee for additional cards.

⁴$10.43 if install is included with other services, $25.14 if purpose visit.

⁵0.2% of Time Warner installs are self-install, which is negligible.

⁶The average is $2.26, but they report most divisions are $1.75 - which must mean the remaining divisions are rather higher to bring the average up.

Recently ZDNet’s Ed Burnette lost a TiVo in a lightning storm. When that happened he decided to give Time Warner’s Scientific Atlanta Explorer 8340HDC DVR a try rather than having his old TiVo, which had lifetime but was not HD, repaired. Ed thought he’d try this because, as he puts it:

The Time Warner DVR box model was free, and the service cost $7.95/month. Also I was excited at the possibility of finally getting high definition content on my Sony HDTV. I asked some friends who used it and they seemed happy with it.

But the reality of the situation was not so rosy:

I can sum up my experiences with the Time Warner DVR in one word: Argh!

Ed enumerates the myriad of issues he experienced with the cable DVR in his article at ZDNet. From the terrible button-farm remote with unintuitive controls, to the lack of a priority list for the DVR’s version of Season Passes, to odd quirks during normal use (like the screen blacking when you pause playback and having trouble resuming playback), and more. And it sounds like his family agreed:

After two weeks of this I decided enough was enough. The family all agreed. We wanted TiVo!

Ed considered paying the $150 repair fee, which would really see him upgraded to a Series2DT with his lifetime transferred. But he’d had a taste of HD and native digital cable support, so he instead opted for the TiVo HD. After ordering his new TiVo HD, but before it shipped, TiVo announced the TiVo HD XL.

Knowing a good thing when he sees it, Ed canceled the TiVo HD and ordered a TiVo HD XL.

I think TiVo should send a nice thank you gift to Time Warner and Cisco/Scientific Atlanta for providing such a crappy DVR. The bad experience helped turn a potential lost customer with a dead TiVo into a high-end customer with the latest and greatest TiVo. Cisco’s bad DVR was good for TiVo.

According to TWICE, Digeo is working on two Moxi cable DVRs. The first will be distributed through Charter later this month, to also be followed by ‘a second MSO’. It’s only four months after they announced this the first time. Back in May at The Cable Show Digeo announced that Charter would carry the Moxi 3012 HD DVR by the end of 3Q08. So they have less than two weeks to meet that goal.

Of course, back in January Digeo’s then COO, now President, Greg Gudorf told me that their cable DVR would ship by the end of 1Q08. So we’ll see how this roll out goes.

The other Moxi DVR will be a CableCARD consumer product sold at retail and expected to ship in January. That will be a year after Digeo suddenly canceled all of their planned consumer products, just days after showing them at CES and talking up the launch plans.

Details on the consumer product are thin, I’m presuming they’ll have something to say about it at CES in January. Of course, they did last year too. Unsurprisingly it will be a CableCARD-enabled DVR, and it will not be tru2way-enabled. It sounds like they’re pitching all the same features they were on the canceled products - music and photo access, content partners, home control integration, etc. For music content Digeo has lined up FineTune, Rhapsody and Sirius and they have Flickr for photos.

The one new item that I found interesting is that they’re implementing DLNA support. I’d like to see more products supporting DLNA, standards are good and DLNA has growing support across a number of products such as the Xbox 360, PS3, HP Media Smart TVs, Blu-ray players, etc.

Digeo is also apparently still working on their Moxi TV for PC software, which I was told was in beta and close to release at CES 2008 in January. Though according to TWICE they have it running on XP, Vista, and Media Center versions of Windows now, and not just XP as at CES. No word on when it might be available to consumers.

Gudorf told TWICE that Digeo is working on future products for post-July 2009 which will support tru2way. Digeo signed the tru2way accord in June. But I’m not even going to devote any mental energy to that until Digeo manages to ship something to consumers.

Digeo started talking about launching new consumer products two years ago, in September 2006. (Which I picked up, amusingly enough, from an article in TWICE.) I talked to them at CES 2007 where they were showing mock ups and no real products with the promise of shipping later in the year.

They insisted they’d ship in time for the 2007 holidays up through September. (Oddly enough, another article from TWICE. Is covering Digeo a September tradition for them?) Then in November they admitted they weren’t going to ship in 2007.

Then I talked to them again at CES 2008, and they were showing off some of the same mock-ups they’d had at CES 2007, as well as some actual products. Just a week later they canceled the products and laid off nearly half of their staff. Digeo’s Gary Gudorf talked to me the next day to offer clarifications, including that their cable MSO product would ship by the end of 1Q08, which it didn’t.

We didn’t hear anything else until April when details on the cable product emerged. And then in May they exhibited at The Cable Show and issued a press release announcing Charter’s intention to carry it. In June Digeo signed the tru2way accord.

And now here we are in September again, two years after they first announced their intention to enter the consumer DVR market, and they’re promising a box ‘expected to ship in January’. You’ll pardon me if I don’t hold my breath. Assuming they do exhibit at CES in January, I’ll check out their offerings, again. As I said when I covered them this year, I think they have some good design points. But none of it matters until they manage to get a box on retail shelves.

I hear it’ll come bundled with Duke Nukem Forever.

Tipped off by EngadgetHD.

EDIT: This got some attention in AVS Forum, including from a Charter rep, who wasn’t encouraging:

Ironically yesterday I got whispers from a contact in St Louis who works with someone who’s got a beta 3012 (Don’t get hopes up, so far it seems only a few elite managers and tech ops people in St Louis have gotten to beta this unit)

Apparently it’s still got quite a few bugs, which I think is very odd, given really all they needed to do was improve on the existing hardware and leave the software alone.

At any rate I don’t expect to see them in 2 weeks, heck at the rate things are going, I’d consider us lucky if we see them before Q3 2009

I’d say I’m surprised or that this is unusual so close to a planned release - but frankly this is what I’ve come to expect from Digeo. They’ve had one product actually make it to market, the BMC9000 STB series from Motorola running the Moxi software. But that launched back in 2004 and has been out of production for a long time now. At its peak it only reached around 400,000 users, and the number of Moxi uses is believed to be much smaller now as units have been replaced with newer, non-Moxi DVR models. Unsurprisingly the main MSO to use Moxi was Charter, which, like Digeo, is controlled by Paul Allen. But even with it being ‘in the family’ Charter’s use of Moxi was minor.

Moxi’s history since they were acquired by Digeo has been one of failed execution. Early on Moxi was on their way to being a competitor in the consumer DVR space and they had some cutting edge plans, then Digeo acquired them and refocused them on cable MSOs instead of retail. Digeo acquired Moxi way back in 2002 - and in six years what have they done? One product which never achieved more than minor market penetration, and is now well out of date and discontinued. Aside from that they have a history of press releases and announced partnerships, awards won for products announced but never shipped, staff layoffs, and repeated product delays and cancellations. If they didn’t have Paul Allen backing them I don’t see how they’d still be in business. Digeo needs to ship a product, a good product, to significant numbers of users, if they want to earn consumer trust again.

EchoStar Europe just exhibited at the European IBC 2008 trade show and they’re making a big push into cable set top boxes. As they’re show blurb says:

EchoStar is one of the world’s largest vendors of set-top products for PayTV, having shipped more than 53 million digital receiver devices, including more than 3.8 million HD-STBs and 9.7 million DVRs.

From the company’s beginnings as the technology behind US pay TV operation ‘DISH Network’, EchoStar’s broad product spectrum now extends into many millions of homes across Europe and The Americas, encompassing satellite, digital terrestrial and IPTV services.

New at IBC, EchoStar is announcing its arrival onto the Cable TV stage, with the introduction of a global range of high-definition QAM set-tops, including MPEG4 DVR and DOCSIS devices, available with a variety of popular CA and middleware options. EchoStar’s legendary reliability and cost-of-ownership advantages, borne of the company’s network operations experience, offers serious competitive advantage to MSOs and broadcasters everywhere.

EchoStar is also at the forefront of home networking technology, delivering custom multi-room solutions based on HomePlug, MOCA and DLNA. In addition, the place-shifting capabilities of SlingBox and Sling Media, an EchoStar company, are part of the breadth of the EchoStar proposition.

EchoStar not only delivers competitive products to demanding customers but also adds unique value. Our real-world experience ensures the technology works for your business.

Interestingly a press release on their presence at the show really stresses their ability to integrate Sling Media place-shifting features in their set top boxes.

EchoStar Europe is the exclusive provider of Sling Media™ place-shifting functionality in set-top boxes outside North America, with the platform independent solution available for integration in cable, satellite and IPTV STBs. In partnership with Sling Media™, the company will be highlighting the benefits of Sling Media™ software for home networking. A Sling Media integrated STB will provide an instant solution to complex multi-room, multi-screen requirements as encrypted digital Pay TV content can be moved seamlessly over IP using wired or wireless networking technologies to second TVs, PCs, laptops and mobiles.

The Sling set-top box platform emphasises EchoStar Europe’s ability to offer broadcast network operators solutions that differentiate services, increase customer loyalty and potentially increase revenues. At IBC the company is outlining its pioneering achievements in helping develop some of the world’s first DVRs, HD-DVRs and hybrid satellite/IPTV DVRs as part of the EchoStar family and demonstrating its leading position in both time-shifting and place-shifting.

While this is all focused on Europe I think this is a strong indication of what to expect from EchoStar in the US. (And I should say here that, while I work for Sling Media in my ‘day job’, this is just me as a blogger putting two and two together here and not any inside information. Got it?) Keep in mind that EchoStar recently signed the CableCARD and tru2way agreements with CableLabs in the US.

When EchoStar and DISH Network split this was one of the reasons given, to allow EchoStar to branch out into more hardware markets. While EchoStar remains the hardware supplier to DISH Network, no longer being the same entity makes it easier for them to sell hardware to other MSOs who may have balked at buying from a ‘competitor’. EchoStar has extensive experience with set-top box design and production, and with Sling Media under the same roof it gives them the opportunity to incorporate advanced place-shifting capabilities into their products. That should be no surprise as it was a stated goal in the Sling acquisition last year.

EchoStar was also touting their set-top box health monitoring system and advertising behavioral monitoring. Originally developed for DISH Network, but available for all forms of set-top box.

It certainly sounds like there will be some interesting products coming down the pipe.

Disclaimer: I work for Sling Media, which is owned by EchoStar. But a I said above, this is just me as a blogger reporting on what I read from public sources. I almost didn’t post this because I don’t want someone thinking this is backed by inside info, it isn’t. But I think it would be cool.

According to this post at The Green Button by Charlie Nilsson, Program Manager for Microsoft eHome Division, Microsoft is working on support for the Tuning Adapter in Windows Media Center to allow MCPC users to handle Switched Digital Video. The Tuning Adapters were approved by CableLabs in July and TiVo has already deployed support. Since the TAs are USB devices, it might seem like PCs would be amongst the first platforms to support them. However, it sounds like it may be a while yet:

Microsoft recognizes the impact of this technology on our customers and partners. We are working to enable support for the CableLabs SDV Tuning Adaptor for Windows Media Center Digital Cable Tuners, ensuring that Windows Media Center users will be able to access switched content.

While we have no further details at this time, we will keep you updated as more information becomes available.

While it is good news that MCPC users will be getting SDV support, I’m sure the users with cable systems using SDV would like to see it sooner rather than later.

I’ve said it before, and I will probably say it again, all 1080p content is not the same. There is more to picture quality than lines of resolution or pixel count, bit rate is equally important, if not more so. With DirecTV, DISH Network, VUDU, and others touting their 1080p content they’re often comparing it to the gold standard in home video - Blu-ray Disc. As DISH Network did just the other day: “Blu-Ray Disc quality 1080p resolution”. And that doesn’t get into the audio, which doesn’t come close to the lossless audio available on many Blu-ray titles. Well, it looks like the Blu-ray Disc Association has finally had enough, according to David Mercer at StrategyAnalytics:

These claims have clearly struck a sensitive nerve within the Blu-ray community, which, given their strategy as outlined above, is perhaps not surprising. Today the BDA has given me the following statement:

“A number of companies have recently launched advertising campaigns claiming their products deliver high definition picture and sound “equal” to that delivered by Blu-ray Disc. These comparisons are irresponsible and are misleading to consumers. Up conversion and satellite broadcast cannot provide a true Blu-ray high definition experience, as neither is technically capable of producing the quality delivered by Blu-ray players and Blu-ray discs. To that end, the Blu-ray Disc Association is exploring these claims further and will take appropriate action, as necessary, to prevent consumers seeking the ultimate in high-definition home entertainment from being misled.”

I’m happy to see this. Blu-ray has struggled to educate consumers about higher quality home cinema, and now that it is started to gain recognition and traction in the market other vendors are trying to ride their coattails by tricking consumers into thinking they offer the same quality experience just because they’re also ‘1080p’.

Picked up from EngadgetHD.