Roku Sides With Cable TV Partners In FCC Set-Top Box Brouhaha
FCC Chairman Tom Wheeler’s proposal to open up the TV set-top market does not have the support of one of the biggest video streaming set-top makers, Roku, which has partnered with cable TV firms. “We have not been advocating for a rule making in this area at this time,” Tricia Mifsud, a Roku spokeswoman, told IBD. “While we are known for selling streaming players, it is only one area of our business. Customers also access our platform through smart TVs and streaming players that operators deploy.” Comcast ( CMCSA ), Charter Communications ( CHTR ) and Time Warner Cable ( TWC ) are among cable TV firms that could be affected by Wheeler’s proposal. AT&T ( T ), which provides U-verse pay-TV service, also has protested Wheeler’s set-top box rules. The Federal Communications Commission is expected to vote on whether to move forward with the set-top box initiative on Thursday. The agency could adopt new rules by year-end. Alphabet ’s ( GOOGL ) Google has drawn the wrath of cable TV firms in the wake of the Wheeler’s proposal because it may target the TV advertising market. Tivo ( TIVO ) is another company that could take advantage of new set-top box rules, analysts say. Wheeler aims to make it easier for consumers to switch from set-top boxes rented from cable TV companies to devices sold by consumer electronics or Internet companies. The FCC says making programming bundles sold by pay-TV companies accessible from a wider range of devices is not a threat to copyright protections . Roku recently raised $45.5 million in a funding round and appears to have shelved plans for an initial public offering. Critics say the FCC’s proposal is not needed because of technology and marketing shifts already underway. Time Warner Cable in New York City is testing a cable service that doesn’t require a set-top box. Its slimmed-down programming package is available through a broadband connection and Roku’s streaming device. “In addition to Time Warner Cable, we also have a similar arrangement with Charter where they are buying streaming players to offer in a bundle,” added Roku’s Mifsud. “Overseas, we have partnerships with Sky in several countries and Telstra where we have licensed use of our platform and they have deployed their streaming video services to co-branded streaming players.” Amazon.com ( AMZN ), Roku and others sell Internet sticks, or dongles, that provide access to Web video. Some cable firms still do not provide access to Netflix ( NFLX ), or YouTube apps on their Internet-ready set-top boxes.