Comcast Facing Lawsuit Over Set-Top Box Rentals
Multichannel News reports that a woman from California has initiated a potential class-action lawsuit against Comcast for making customers rent a set-top box without giving them the option to buy it outright. Quoting:
"The action, on behalf of Comcast Corp. customer Cheryl Corralejo, alleges that the set-top rental practice represents an 'unlawful tying arrangement resulting in an impermissible restraint of trade.' In addition to violating the Sherman Anti-Trust Act, the suit alleges the practice violates business and professions codes. ... [It also notes] that premium video and the set-top descramblers are two distinct products, yet the cable providers require that the hardware be rented from cable companies, rather than permitting consumers to purchase the set-top hardware in the open market.
CableCARD exists. TiVos use it. The failure of it to take over has nothing to do with the open market. It's because cable is not an open market. CableCARD was forced on the cable companies by the FCC and they didn't want it, so they responded by doing the worst possible job in supporting it.
Friends who have TiVos mention having to wait almost two weeks for a CableCARD "install" where a guy shows up with a card and just puts it in your TiVo. When they easily could have just given you the card on the spot.
http://lkml.org/lkml/2005/8/20/95