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1950s. Community Antennas- extension of broadcasting Initially small cottage industry By 1953, more stations. CATV begins to import distant programming (via microwave) to compete. 1950: 70 systems, 14,000 subs. 1960s. Channel Expansions (up to 12) - Need more programming
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1950s Community Antennas- extension of broadcasting Initially small cottage industry By 1953, more stations. CATV begins to import distant programming (via microwave) to compete 1950: 70 systems, 14,000 subs 1960s Channel Expansions (up to 12) -Need more programming -Begin cable exclusives (movies) Broadcasters start feeling threatened 1966 beginning of move toward regulation 1962: 800 systems 850,000 subs Cable's rise
1970s Consolidation into MSOs. By 1972, 10 largest MSOs had over 35% of cable households [network effects + scale --like ATT] - bought neighboring systems (mgmnt benefits) - large investment requirements (scale ecos) - programming negotiations (favor larger players) - franchise negotiation (favor larger players) 1972: Regulation (must carry, programming restrictions, PEG channels) new competition: satellite HBO (72), Turner Bcasting, WTBS (sports/classic movies) End 70s, 15m subs 1980s Boom years 1984: deregulation 1980: 28 cable networks By 89, 74 cable networks, 53 m subs
1990s CATV available to 97% of TV households average house gets over 40 channels 45% get more than 54 channels Many systems being re-built (digital tech) 97: 55% of cable homes passed by newer systems (more channels and 2-way) 1992: re-regulation – must-carry vs. retransmission consent New competition? - MMDS (multichannel multipoint distrib service), or "wireless cable" - DBS (Direct bcasting TV) - directTV 1995: 139 cable networks 65m subs
Current broadcasting policy issues • Transition to HDTV / DTV • Standards • Allocation of new spectrum • Progressive lifting of Ownership / Cross-ownership restrictions • Convergence cable – telephony • Broadband internet