1. Broadcasting, Cable, the Internet and Beyond Chapter 2 Quick Facts zCost of monthly cable service 1950: $3.00 zCost of monthly cable service 2002: $40 (est.) zFirst satellite TV broadcast: NBC, 1962 zCost of the first home satellite dish: $36,000 (1979) zCost of DirecTV satellite system 2002: $0 (limited time offer and you have to install it yourself) zFirst Consumer VCR: 1975 zDevelopment of the Internet: 1986

2. Broadcasting, Cable, the Internet and Beyond Chapter 2 The Story of Cable TV zCable started in rural towns such as Astoria, Oregon and Lansford, Pennsylvania zCommunity Antenna TV literally was a sharing of a common antenna system to pick up television signals zBy 1952, about 70 cable systems were serving 15,000 homes in the U.S.

3. Broadcasting, Cable, the Internet and Beyond Chapter 2 FCC and Cable zEarly on the FCC avoided regulating cable and decided it was really an ancillary service to broadcast television zIn 1972, the FCC established more formal rules yLocal communities, states and the FCC were to regulate cable yNew systems would have a minimum of 20 channels yThere would be carriage of all local stations yThere would beRegulations on importing distant signals yPay cable services would be approved

4. Broadcasting, Cable, the Internet and Beyond Chapter 2 Cable Growth - Technical and Regulatory zSatellite distribution of signals made it possible to distribute programming to local cable franchises yIn 1975, HBO became the first pay service distributed via satellite zThe Cable Communications Act of 1984 yreduced FCC control over cable ymade the local community the major force in cable regulation zLarge companies rushed to get local franchise rights to build cable systems

5. Broadcasting, Cable, the Internet and Beyond Chapter 2 Cable Growth - continued zBetween 1975 to 1987 yThe number of cable systems tripled yPercentage of homes with cable increased from 14% to 50% zBy 1988, the cable industry was dominated by large multiple-system operators (MSOs) zToday about 70% of all TV homes subscribe to cable zAnnual revenue from subscribers amounted to $48 billion in 2000

6. Broadcasting, Cable, the Internet and Beyond Chapter 2 Alternatives to Cable zTVRO (satellite television receive-only earth stations) popular option for people who could not get cable. yBy 1990, three million consumers had these large dishes zDBS took the nation by storm in the mid-1990s yToday there are more than 14 million subscribers zWireless Cable (MMDS - multichannel, multipoint distribution systems) uses microwave technology to distribute television programming. yToday there are about 1 million subscribers

7. Broadcasting, Cable, the Internet and Beyond Chapter 2 Home Video zBroadcast video tape recorders debuted in 1956. yThey were quickly adopted by the television networks zSONY introduced the Betamax VCR in 1975. yIn 1984, the Supreme Court ruled that home taping did not violate copyright law yIn 1978, 175,000 VCRs were in use in the U.S. zToday about 95 million households own a VCR (about 90% penetration)

8. Broadcasting, Cable, the Internet and Beyond Chapter 2 DVDs and PVRs zDVDs are beginning to replace home VCRs zDVDs provide better picture quality than VCRs yIn 2001 about 18 million American homes had a DVD zPersonal Video Recorders (PVRs) record television programs on hard disk recorders yBy 2002, approximately 1 million PVRs in U.S. homes

9. Broadcasting, Cable, the Internet and Beyond Chapter 2 The Video Store zIn the late 1970s, the Video Shack chain opened zVideo rental stores sprung up across America yBy 1984, there were about 20,000 specialty video rental shops zIndustry concentration has created several large rental chains. yBlockbuster Video became the market leader zLong term, video rental faces competition from pay-per- view services on cable and DBS

10. Broadcasting, Cable, the Internet and Beyond Chapter 2 The Internet zThe Internet refers to the global interconnection of computer networks using common communication protocols zThe World Wide Web is one of several services available on the Internet zGopher, FTP and email are other services available to Internet users

11. Broadcasting, Cable, the Internet and Beyond Chapter 2 The Birth of the Internet zCold war struggles between the U.S. and the former Soviet Union speeds development of the Internet. zSputnik zThe SAGE (SEMI-AUTOMATIC GROUND ENVIRONMENT) Project (early warning radar system) provides the U.S. with advanced warning against a missile attack. zComputer and communication technology ymodem and video display terminal were outgrowths of the SAGE project

12. Broadcasting, Cable, the Internet and Beyond Chapter 2 Would there be a dial tone? zPaul Baran and Donald Davies, working independently, develop theoretical ideas for making computer networks less susceptible to attack zPacket switching was an outgrowth of this early research zPacket switching provided for small data packets to be sent over distributed communications networks

13. Broadcasting, Cable, the Internet and Beyond Chapter 2 ARPANET, Email and USENET zIn 1968, the U.S. funds ARPANET. yPurpose was to build the first interactive computer network zNetwork control programs become the forerunner of the Internets TCP (Transport Control Protocol) yIn 1969, ARPANET became operational zRay Tomlinson develops e-mail in the early 1970s zUSENET extended use of the system to many university researchers

14. Broadcasting, Cable, the Internet and Beyond Chapter 2 Personal Computers: The new mass medium zApple Computers Macintosh revolutionized the personal computer market zNetworks such as Compuserve and America Online provided social usage networking zDomain names such as.gov,.edu and.net extended the usefulness of networking

15. Broadcasting, Cable, the Internet and Beyond Chapter 2 The Internet at last zNSFNET linked supercomputer centers across the country together zThe Internet was born in when NSFNET replaced ARPANET zIndependent Service Providers (ISP) allowed everybody to connect to the new network

16. Broadcasting, Cable, the Internet and Beyond Chapter 2 The World Wide Web zIn 1989, Tim Berners-Lee develops idea of using a graphical interface for retrieving information on network databases. zHyperlinks to call up information on remote computers zURL (universal resource locator) addresses would be used to locate information on the network and send it back to the person who requested the information zThe concept was called the World Wide Web

17. Broadcasting, Cable, the Internet and Beyond Chapter 2 The World Wide Web zIn 1991, World Wide Web experiments start in Europe and the United States zIn 1993, Marc Andreesen developed Mosaic, the forerunner of Netscape Navigator zBrowser and WWW form killer application zToday more than 1 million sites contain more than 2 billion pages of information, graphics, sound and video