CABLE

1
Chapter 6

• CABLE
• and the Specialization
• of Television

2
Opening Exercise

• Invent a new cable channel, which will
• Fill a clearly defined niche
• Draw an audience demographically profitable for
  the advertisers who will pay for the channels
  operation

3
Development of Early Cable Technology

• Devised by appliance store dealers and
  electronics firms, 1940s
• Need to get TV programming in rural, remote areas
• built antenna relay towers in remote rural
  communities, ran wires to homes

4
CATV Community antenna television

• first small cable systems
• in communities where mountains or tall buildings
  blocked broadcast signals
• served 10 of USA, with 12 channels
• Advantages no over-the-air interference,
  increased channel capacity

5
Cable threatens broadcasting

• broadcasters lobbied to curb cable development
  for 30 years
• FCC backed broadcasting industry, banning cable
  competition until the early 70s
• only exception CATV allowed in remote areas

6
How Do Cable Systems Work?

• Headend computerized nerve center
• downlinks program channels from satellite
• relays programming through coaxial or fiber-optic
  cables attached to utility poles
• signals run through drop lines into homes through
  converter boxes

7
FCC and CABLE REGULATION, 1972

• Must-carry rules required cable operators to
  carry all local TV broadcasts
• Limited number of distant commercial stations
  carried
• Mandate for public access channels and leased
  channels

8
Public Access Television

• If you controlled a public access channel in your
  community, what would be your channels goals?
  How could public access television find a larger
  audience than it has in most places? Is a larger
  audience desirable?

9
Cable Franchising

• Local communities awarded monopoly to selected
  cable company (late 1970s-1980s)
• Franchises awarded by local municipalities and,
  sometimes, state governments
• Opportunities for corruption in bidding
• Some states defined cable as a public utility

10
CABLE TVs AMBIGUOUSREGULATORY STATUS

• WHO holds jurisdiction over wired television?
• Is it broadcasting, or a public utility (a common
  carrier)?
• Or is it an electronic publisher?

11
Cable Act of 1984

• represented more support and protection for cable
  industry
• ended rate regulation and must-carry rules
• cable subscription charges skyrocketed
• cable systems began dropping PBS, local and
  independent stations

12
Cable Act of 1992

• FCC and Congress re-instated rate regulations
• must-carry or retransmission consent options for
  local commercial broadcasters

13
TELECOMMUNICATIONS ACT of 1996

• first major change since 1934, finally
  incorporating cable under federal regulation
• removed market barriers between phone companies,
  long-distance carriers and cable operators
• re-affirmed must-carry rules to protect local
  broadcasters

14
CNN Revolutionizes TV News

• 24-hour TV news channel, 1980, Turner
  Broadcasting
• 1982 Turner launched HEADLINE NEWS channel as
  well
• lost money until 1985
• emerged as major news competitor during Persian
  Gulf War, 1991, with 24-hour coverage

15
The CNN formula

• emphasizes news itself rather than celebrity
  anchors
• 24-hour format allowed unprecedented viewer
  access
• delivers timely news in greater detail
• offers live, unedited continuous coverage of
  breaking events
• emphasizes international news

16
MUSIC TELEVISION NETWORK (MTV)

• 1981, Warner Communications (bought by Viacom in
  1985)
• Global offspring and strong international
  presence MTV Asia, MTV Europe, MTV Brazil, MTV
  Japan, MTV Latino

17
MTVs niche

• originally, rotation of music videos (a new media
  form) in early 1990s, added original programming
  
• partnership with recording industry MTV bought
  exclusive rights to music videos
• exclusive agreements with cable systems to limit
  competition

18
MTVs Style

• Visual style has revolutionized the look of
  film, television, and culture worldwide
• hand-held camera
• innovative camera angles
• fast-paced cuts
• bright colors

19
CNN AND MTV

• In addition to the changes CNN and MTV have made
  to US culture, they are also seen in many other
  parts of the world. What changes might they be
  making in the cultures of other countries? Do
  you see them as positive or negative in a global
  context?

20
Direct Broadcast Satellites (DBS)

• DBS bypasses cable to get programming directly
  from satellite
• legal issues--who owns the satellite signals?
• Early satellite dishes huge and expensive
• FCC restricted DBS services in 1970s and 1980s
• Full, legalized DBS services in 1994

21
OWNERSHIP ISSUES in the CABLE INDUSTRY

• Multiple-system operators (MSOs)
• Oligopoly handful of corporations control most
  of programming
• Which companies dominate the cable industry?