Comcast Is Finally Rolling Out The X1, Its Set-top Box In The Cloud

Comcast announced Monday that it will make its newest set-top box available in Boston over the coming weeks, with a rollout planned across the entire country later this year. It’s also introducing a mobile app to control the set-top box from the iPhone or iPad.

The new set-top box comes after several years of development. Comcast has been working hard to develop a new set-top box that would take all of the smarts out of the box and put it in the network, essentially allowing the cable provider to launch new services and update the new features without having to totally rewrite applications or push out new firmware.

With the X1, all the processing is done in the network. That will give Comcast the flexibility to quickly test and create new apps for customers, without having to worry about how outdated its set-top boxes are. It will also provide more personalized features, such as allowing customers to see which shows their Facebook friends are watching.

The Free Ride Is Over

Comcast’s plans to do away with its 250 GB data cap and charge users based upon usage marks the end of an era for cable TV providers, and for the online video industry. No longer will users be able to endlessly stream all the content their hearts desire. Not just that, but the fact that usage-based pricing is arriving at the same time that more, higher-quality content is appearing online could have a dampening effect on demand for services like Netflix or Hulu Plus.

Comcast, of course, says that its new, usage-based pricing policy is pro-consumer, and to a certain extent it is. The average broadband subscriber — those who only use up about 8 GB or 10 GB of data a month — shouldn’t necessarily pay the same as those whose usage goes above 300 GB in the same period of time.

But for those of us who are avid streaming video users, usage-based pricing models could change the overall value proposition of watching video on the Internet.