A couple of days ago news came out that Apple and Comcast have entered into discussions that seem to center around the AppleTV box essentially being used to replace the traditional cable Set Top Box. Comcast would allow AppleTV to stream live programming such as sports through the device, essentially creating a “smart TV” type of package. Comcast can still make revenue from streaming TV for those homes that want to “cut the cord” with cable television providers.
With the advent of the “Smart TV” this strikes me as a bit backwards thinking. If a consumer has a “Smart TV” that features a UI inside the unit that has many of the same streaming “channels” available as a computer or AppleTV, then why would they need or want a set up box at all? Regardless of whether it’s AppleTV or the Roku streaming box? Personally I think Roku has the right idea.
At the 2014 CES show in Las Vegas Roku announced the first set of 5 Roku branded televisions which will feature the entire UI inside the TV giving the end user access to the current 1200 channels available on that service. Roku also made it clear they’re open to placing their UI into other television manufacturers. And the Roku 3 has been gaining accolades against the Apple TV for more than a year now due to the tremendous ease of the use of the UI. That’s the same UI / Device going inside the new Roku TV and whatever other manufacturers decide to add the Roku to their units. So the set top box goes away altogether, a single internet connection to the TV is all that’s needed for a streaming TV experience.
Even if Apple should finally release the mythical “Apple Television” in 2015 or 2016 that would be a single branded TV lineup. And would that force Comcast to make their customers choose between an Apple Television and a Set Top Box to get their streaming video in a way that Comcast still gets some revenue share? By 2016 I would expect every television on the market to include some form of “Smart TV” so the need for the set top box should have disappeared by that time.
Just looking at things as they are progressing right now, I think Roku has the right idea right now to eliminate the set top box altogether right now and get aligned with the TV manufacturers. They recognize that their own product will be obsolete in just a few years so instead of trying to get new features such as Live TV on the box, just go inside the TV instead. Eventually all the cable providers will offer some sort of package that will deliver “regular television” via Smart TVs.
The ONLY short term need I might see for a set top box would be if it’s required by the cable provider for 4k content much like an HD box was required when that first came out.
In my own opinion Round One of the television revolution goes to Roku. Let’s see where things are in 12 months.