Cablevision Efforts Could Open Network DVR Floodgates

The potential overturn of a court ruling blocking Cablevision Systems Corp.'s plan to roll out a network-based digital video recorder (nDVR) service, could result in an even wider launch of the offering according to executives from Comcast Corp. and Time Warner Cable.

nDVR services use content housed in servers in cableco networks rather than common DVR units with hard drives, which are used in the home. Many, including researchers, believe the offerings, if allowed, would drive growth of the overall DVR market.

“If Cablevision wins on its appeal and gains approval, we will do an nDVR service,” promised Stephen Burke, chief operating officer for cableco giant Comcast Corp. “We think it’s better than using DVRs in people’s homes.”

Another cable giant, Time Warner Cable, sees big upside to nDVR services, but fell short of committing to launch one if Cablevision gets the green light. “We’ve seen from some of our other services that is better to rely on central servers than on devices in homes with hard drives that can break,” said Glenn Britt, CEO of Time Warner Cable.

ABI Research has said it believes nDVR services will help fuel growth of the market from 20 million subscribers last year to a projected 250 million in 2011.

To recap actions that trace back before this year, Cablevision has sought to offer nDVR service for some time. It said last month it is filing an appeal of a recent federal district court ruling that barred the company from rolling out a network-based DVR service.

A group of Hollywood studios and broadcast networks had filed suit last May to prevent the cable operator from launching the service, claiming the offering, which would store video on servers in the cable giant’s network, violated copyright laws. The U.S. District Court of Manhattan ruled in their favor in March.

Cablevision plans to seek expedited review of its appeal, citing what it alleges is the district court’s “misapplication of modern copyright law to remote-storage DVR,” with potentially broader negative implications for technological innovation and the consumer benefits of remote-storage DVR. The company said the appeal will be heard by the 2nd U.S. Court of Appeals.

In general cablecos also believe that it’s smarter and a better use of their resources to maintain servers for an nDVR service in their network than have to field calls and possibly dispatch workers to homes when problems arise with in-home DVR units, with most problems focusing on the DVR’s hard drives.

ABI Research www.abiresearch.com
Cablevision Systems Corp. www.cablevision.com
Comcast Corp. www.comcast.com
Time Warner Cable, Inc. www.timewarner.com

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