Cable operators have long dreamed offer offering "networked DVRs," or the storage of video content at the network head end, eliminating the need for a consumer-side set top box entirely. Cablevision conducted a 1,000 person trial of a network DVR service in 2006 that worked essentially the same way as a traditional DVR -- except that 80 hours of video content were stored on Cablevision servers. Time Warner Cable also explored such a system, with the initial trial supposedly receiving rave reviews.

We appreciate the Court’s perspective that, from the standpoint of existing copyright law, remote-storage DVRs are the same as the traditional DVRs that are in use today,” -Cablevision COO Tom Rutledge

However, Cablevision was sued by the entertainment industry, who claimed the system violated broadcast and copyright laws. Last year, a Federal judge ruled against Cablevision, preventing Cablevision from broader deployment. In an interesting turn of events, today an appeals court overturned that ruling, and lifted the ban on Cablevision's use of the system pending appeal.The threat of lawsuit had cable operators deploying far less interesting variants. For instance, Time Warner Cable scrapped their own networked DVR project and instead started offering "Start Over," a system that allows users to (obviously) start programs over if they tune in late, but does not let them skip advertisements. The new ruling, should it stand, could make your home entertainment options vastly more interesting the next few years.