Sony, Cable Firms in Video-Delivery Pact

A group of cable operators has signed a deal with Sony (SNE Quote - Cramer on SNE - Stock Picks) that may ultimately eliminate the need for the ubiquitous set-top box.

Sony said it plans to produce plug-and-play "two-way" digital televisions and other devices that can receive interactive digital and high-definition video services without a set-top box, a move that's aimed at simplifying cable installation and reducing costs.

Comcast (CMCSA Quote - Cramer on CMCSA - Stock Picks), Time Warner Cable (TWC Quote - Cramer on TWC - Stock Picks), Charter Communications (CHTR Quote - Cramer on CHTR - Stock Picks), Cablevision (CVC Quote - Cramer on CVC - Stock Picks), Cox Communications and Bright House Networks are among the companies entering the agreement with Sony. In total, those six cable operators serve more than 82% of all U.S. cable subscribers.

"This is a landmark agreement which will provide a national, open and interactive platform resulting in more choices of services and products for consumers," said Kyle McSlarrow, president and CEO of the National Cable & Telecommunications Association.

Shares of Sony were off nearly 1% at $47.58. All four publicly-traded cable providers were higher.

Satellite television operators were mixed. Dish Network (DISH Quote - Cramer on DISH - Stock Picks) was losing 0.3%, while DirecTV (DTV Quote - Cramer on DTV - Stock Picks) was tacking on 0.1%

Set-top box manufacturers were trading higher despite the announcement. Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), which owns the Scientific-Atlanta brand, was up 1.4%. Motorola (MOT Quote - Cramer on MOT - Stock Picks) was adding 0.7%.