This may be probably a more typical EU setup, but cables would be 2 if your digital TV decoder is built into the TV itself, as it usually happens here.
Well, most TVs here do have tuners built in (mine can tune OTA and cable inputs on its own), but I would never ever actually use it. I suspect it will be nearly impossible to ever get me to use something other than my Tivo.
Here the market is basically entirely covered by:
1. Digital TV, for which you typically use the built-in receiver. But, many either have older TVs that don't have digital TV receiver or tehy are not capable of the new HD digital TV; in such cases, you would have an external box.
2. Sat, for which you need an external box (which comes also with optional TiVo-style features, but it is not quite the same, unfortunately).
Very little market has TV over IP via few of the major ISPs.
So, if you're not using an external box, it is quite likely your would have to output audio from your TV to your receiver to enjoy decent audio quality, provided it is actually there at the source.
TiVo never made it to Italy, sadly, and I am afraid it is so for most of the EU. Maybe the UK? Everywhere I heard of some tiVo-like services, as I was mentioning, but they don't compare, really, with it.
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