The Federal Communications Commission voted on Thursday to move forward with a rule that would keep customers from having to rent a box from cable companies, according to Consumerist.
Cable companies have been fighting the proposal, which is opening the door for competition and lost revenue. Major cable and satellite TV companies could lose billions.
The average cable subscriber pays $231 a year to rent a cable box in addition to paying for cable service.
Under the new rule, instead of using a cable box to see channels, customers would be able to pick the devices that they use to watch programming.
Currently, users can get streaming content through services such as Hulu, Netflix and Amazon using their smart TV or devices from companies like Roku or Apple TV, which do not replace the cable box.
The rule would require cable and satellite companies to allow such third parties, who are their competitors, access to cable programming with devices that would blend Internet and cable programming.
The cable companies call the move a brazen money grab by big tech companies, but the cable industry makes $20 billion a year from cable box rentals alone.
The FCC will now take public comments. The final rule could be adopted by the end of the year.
Many suspect that the proposal will lead to a lawsuit from the cable industry.
Cox Media Group
