Cable Pioneers 1948: John Walson, small appliance store PA: builds an antenna on nearby mountain and strings wire down to his store Helps him sell more TVs to people not served over air. Why: Many “white areas”: no TV service CATV worked like power repeater In 1960, fewer than 1% had cable

Cable Pioneers Early 1950’s: Robert Tarlton (another appliance salesman) utilized Shapp’s MATV idea to serve viewers in his town Result: cable as we know it invented in using coaxial cable and amplifiers Cable: Head-end wired to homes Limited obligation to “serve the public” Regulated locally, Subscriptions and Ads

Cable Pioneers --In Canada, by % or more had cable, in the US, only 10% of the population. --TV stations welcomed redelivery, ONLY. --Some stations had bigger audiences! --In 60’s: Growing concern about cable --Territoriality challenged for some stations.

Cable’s Beginning “Redelivery Service” to white areas“Redelivery Service” to white areas Program duplication worried broadcastersProgram duplication worried broadcasters “Must carry rule” adopted in early sixties (In 1968 Supremes upheld this rule)“Must carry rule” adopted in early sixties (In 1968 Supremes upheld this rule) 1972: FCC restricted cable to being ancillary (overturned by appeals court 5 years later, beginning of deregulation)1972: FCC restricted cable to being ancillary (overturned by appeals court 5 years later, beginning of deregulation) laissez-faire, Market model wins againlaissez-faire, Market model wins again

Rise of Cable Launch of “domsats”Launch of “domsats” Early Satellite Demand LowEarly Satellite Demand Low Rise of superstations Rise of superstations 1979 Satellite Decision1979 Satellite Decision HBO (1972), PPV and alternative “niche” programming: “Pay TV”HBO (1972), PPV and alternative “niche” programming: “Pay TV”

Wireless Cable It’s not really “cable” Too much competition from DBS FCC issues first DBS licenses in 1980 FCC authorizes some operations in 1982 Not as successful as in the late 1990s Recent renewed DBS Interest

Direct Broadcast Satellite DBS was digital, but how could its programming be different?DBS was digital, but how could its programming be different? Success in the 90’s: Digital signal offers more channels, better pictureSuccess in the 90’s: Digital signal offers more channels, better picture

Direct Broadcast Satellite USSB/Hughes/Direct TV/PrimestarUSSB/Hughes/Direct TV/Primestar Echostar/Dish NetworkEchostar/Dish Network DirectTV only began operations 1994DirectTV only began operations Echostar, third High Power1996 Echostar, third High Power Murdoch News Corp Creates ASkyBMurdoch News Corp Creates ASkyB Murdoch’s political influence enormousMurdoch’s political influence enormous

DBS is getting BIGGER Currently, DBS providers are signing-up 3 new customers for every 1 cable gets Satellite’s share of Pay-TV jumped 23% last year over the year before. Watch for Reduction of the Field Will there be 25 million subscribers to DBS by 2004—it looks good.

Multichannel Effects -- cable and DBS are less accountable to the public and thus more liberal in their treatment of sex and violence. HBO was the first to show uncut sex scenes in movies ++ increased utility or usefulness of media ++ provides voice for ethnic/cultural diversity and public access

Television Choices-Florida 9 of 10 Floridians subscribes to cable or DBS at $30 - $60 per month9 of 10 Floridians subscribes to cable or DBS at $30 - $60 per month 80% of Fla households have cable80% of Fla households have cable 10% of Fla households have DBS10% of Fla households have DBS 10% only get local broadcast signal10% only get local broadcast signal wireless cable not much of a factorwireless cable not much of a factor

Television Choices: US 66% of households have cable66% of households have cable 13% have DBS13% have DBS 20% get local broadcast signal20% get local broadcast signal Wireless cable still not a factorWireless cable still not a factor

Broadcasters are struggling Competition for viewers New Networks Transition to DTV is very expensive Network affiliates remain first choice during prime time

Top 5 Cable Companies AT&T 16,400,000 Time Warner 12,700,000 Charter 6,138,000 Cox 6,100,000 Comcast 5,719,800

Top 10 Cable Companies Adelphia 4,990,092 Cablevision 3,135,370 Insight 1,435,000 Mediacom 747,000 Cable One 741,000

Chapter 3: Key Concepts Community Antenna TV [CATV]Community Antenna TV [CATV] When/Why did cable first exist?When/Why did cable first exist? Why did broadcasters welcome cable at first?Why did broadcasters welcome cable at first? Why did the FCC initially adopt a “hands off” policy regarding cable regulation?Why did the FCC initially adopt a “hands off” policy regarding cable regulation? How did the launch of domsats affect cable?How did the launch of domsats affect cable? TVRO [RECEIVE ONLY]TVRO [RECEIVE ONLY]

Chapter 3: Key Concepts Define “Superstation”Define “Superstation” DBS vs. backyard TVROsDBS vs. backyard TVROs What were the factors that finally launched the current success of DBS?What were the factors that finally launched the current success of DBS? What are the differences/similarities between Ted Turner and Rupert Murdoch?What are the differences/similarities between Ted Turner and Rupert Murdoch?