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Chapter 6

Chapter 6. CABLE and the Specialization of Television. Some guiding questions. How does cable differ from broadcasting? How did cable pose a challenge to broadcasting? What were some of the early issues surrounding cable regulation? How have CNN and MTV influenced global cultures?

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Chapter 6

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  1. Chapter 6 CABLE and the Specialization of Television

  2. Some guiding questions • How does cable differ from broadcasting? • How did cable pose a challenge to broadcasting? • What were some of the early issues surrounding cable regulation? • How have CNN and MTV influenced global cultures? • How is the cable industry organized?

  3. How does CABLE differ from BROADCASTING? Programs reach TV sets through wires (cable) rather than through the air

  4. 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

  5. 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

  6. Cable threatens broadcasting • broadcasters lobbied to curb cable development for 30 years • FCC backed broadcasting industry, banned cable competition • only exception: CATV allowed in remote areas

  7. 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

  8. 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

  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 TV’s 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 • however, 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. NEW PARTNERSHIP BETWEEN CABLE AND BROADCASTING • Networks (ABC, NBC, CBS) slipped from 95% to <50% of prime-time audience • Networks join cable world: e.g., CNBC, MSNBC, Fox News

  15. Cable’s NARROWCASTING = providing specialized programming for diverse and fragmented groups

  16. 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

  17. What is the CNN formula, and how has it affected international news coverage?

  18. 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

  19. 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

  20. MTV’s 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

  21. MTV’s Style Visual style has revolutionized the “look” of film, television, and culture worldwide • hand-held camera • innovative camera angles • fast-paced cuts • bright colors

  22. How has MTV shaped global youth cultures?

  23. Beyond the basics: premium cable • movie channels • pay-per-view • interactive services(banking, shopping, games, internet) • digital cable radio

  24. 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

  25. What are the ADVANTAGES and DISADVANTAGES of both cable and DBS as program providers?

  26. OWNERSHIP ISSUES in the CABLE INDUSTRY • Multiple-system operators (MSO’s) • Oligopoly: handful of corporations control most of programming • Which companies dominate the cable industry?

  27. MAJOR CABLE PLAYERS • TCI (Tele-Communications, Inc.) now part of AT&T • Time Warner Cable (Time Warner is world’s largest media corporation) • together, provide almost 40% of cable services in USA

  28. Can cable television provide a space for alternative voices and independent programming?

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