[Bo102010]

They do eventually pay for themselves ($13 per month! Geez.), but they (a) cost more than you might think to begin with, (b) require a lengthy setup and provisioning process that is quite labor intensive, (c) lock you in to old technology - you can't move to, say, MPEG-4 or IP delivery if you've got a million legacy boxes to deal with.

Similar to how phone companies wish they wouldn't have to subsidize new phones, there are lots of people in the cable industry who wish that every TV had a CableCARD slot and IP connectivity (for PPV/VOD services), or that there was a peripheral you could plug into an Xbox or something that would let you get/decrypt cableco signal.

Obviously opinions will differ from company to company, and we are all actually evil.

[twoodfin]

This comment is one of the best demonstrations of why an Apple TV set will be such an easy sell to cable providers.