Supreme Court Supercharges Cable Box Ending a multiyear battle between Hollywood studios and telecommunications giants, the Supreme Court ruled Monday that cable operators could allow subscribers to store recorded shows on cable systems' massive central databases instead of in set-top boxes. The ruling looks like a clear victory for subscribers of cable services, long frustrated by awkward set-top box technology and perpetually rising subscription fees. By allowing cable operators to build video-storage units intoair yeezy their networks, the Supreme Court has vastly reduced the cost of expanding DVR service, wrote Sanford C. Bernstein analyst Craig E. Moffett in a note to clients Monday. Today, cable systems have to provide costly set-top boxes equipped with high-capacity hard drives to every new customer that signs up for DVR service. For customers lucky enough to already have a DVR box, the expense of new equipment has generally blocked upgrades to bigger, more powerful devices. There are significant economies of scale in using a few giant servers to hold subscribers' videos, and Moffett thinks the cable companies will expand their DVR offerings over a numberNike air jordan 3.5 of years. The lower costs of video storage could also spark a mini-price war in markets where AT&T ( T - news - people ) or Verizon ( VZ - news - people ) compete with the local cable system. These telecoms have been rolling out cable-like television service and may take advantage of the improved economics of offering DVR services to cut their prices. "This could easily set off a price war in which the consumer wins in the end," says Richard Doherty, director of Envisioneering Group, a technology consultancy in Seaford, N.Y. Doherty points out that pay-TV subscribers also stand to benefit from lower energy use if they can swap their set-top boxes for devices without hard drives that connect to remote storage servers. Among the parties frustrated by Monday's decision are Hollywood'sair yeezy shoes biggest studios. General Electric ( GE - news - people ) unit NBC Universal, News Corp. ( NWS - news - people ) studio Fox, Disney ( DIS - news - people ) network ABC and CBS ( CBS - news - people ) sued Cablevision ( CVC - news - people ), claiming its proposed new DVR system would allow users to violate the studio's copyrights by making digital copies. Yet, the studios' pain could result in greater benefits to consumers. By making it easier for viewers to record shows and skip commercials, pay-TV companies may provide an incentive for studios to stream more of their content on the Web, where they can easily force viewers to watch ads in their proprietary video players. Today, studios often make only a handful of episodes of many of their popular series available to online streaming services like Hulu. Another clear loser: Satellite TV providers like DirecTV ( DTV -nike yeezy news - people ) and Dish Network. They can't take advantage of the low cost of storing video remotely like the cable guys. (Satellites are one-way communications tools and can't receive signals from users trying to recall stored episodes.) DirecTV and Dish might try to compensate for their technological inadequacies by offering special-content tiers or slashing their own prices. Either way, couch potatoes win.
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