The outdated and cumbersome cable box is out of sync with modern technology. Bulky and unattractive, these relics struggle to find relevance in today’s sleek TV setups, resembling an era when DVD players held sway. However, cable providers are adapting to the changing landscape, urging customers to trade in their clunky set-top boxes for more streamlined, Apple TV-like streaming devices – a move that could prove cost-effective for consumers.
Comcast and Charter, giants among US cable providers, have introduced the Xumo Stream Box for their Spectrum and Xfinity subscribers. The Xumo device facilitates access to live TV channels through the companies’ apps, coupled with an extensive array of streaming platforms such as Netflix, Disney+, Hulu, and Max. (CNN and Max share the same parent company.)
This shift is part of a strategic response by cable companies to the rising tide of cord-cutting, employing a “can’t beat ’em so join ’em” approach. Faced with plummeting cable subscriptions and a fragmented media landscape, cable providers aim to simplify the television viewing experience for customers in the streaming age.
As streaming apps dominate, cable companies strive to retain their television customer base by streamlining the process of navigating various apps and watching live TV. Xumo represents one facet of this broader strategy, merging live TV with streaming, essentially reintegrating streaming services in a manner reminiscent of the traditional cable bundle. Xumo enables customers to channel surf through live TV, akin to the old cable experience, positioning itself as cable companies’ response to competitors like Roku, Google, and other smart TVs.
Distinguishing itself from conventional cable boxes, the Xumo remote incorporates a number pad for convenient channel browsing, along with voice control capabilities. While existing Spectrum and Xfinity customers can retain their conventional cable boxes, new customers will be furnished with compact Xumo devices by default unless they explicitly request a set-top box.
This transition from cable boxes to Xumo offers a financial benefit to cable customers. Starting January 30, Spectrum’s cable box rental fee will increase from $10.99 to $12.50 per month. In contrast, renting a Xumo streaming box costs $5 per month, or customers can choose to own it outright for $60.
This represents a notable departure for cable companies, which historically encouraged households to incorporate as many set-top cable boxes as possible. However, with Americans now favoring streaming TV over cable, the shift is inevitable. According to Bruce Leichtman, a media research firm executive, only 32% of all TVs in the US have a set-top box, down from 52% in 2018.
Craig Moffett, a media analyst at MoffetNathanson, notes that cable operators are ideally positioned to aggregate all streaming services onto one physical platform, offering a unified solution at a single price. Xumo’s potential lies in the prospect of providing fully integrated search options across all streaming platforms, contingent upon cooperation from the streaming services themselves.
Despite these advancements, the extinction of the ancient cable box may be a protracted process. Charter’s chief financial officer, Jessica Fischer, emphasized that the turnover of these boxes will be a gradual evolution, indicating that the shift will take time.
