Chapter 6

CABLE and the Specialization

of Television

Opening Exercise

Invent a new cable channel, which will

Fill a clearly defined nicheDraw an audience demographically profitable for the advertisers who will pay for the channel’s operation

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

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

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

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

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

Public Access Television

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

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

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?

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

Cable Act of 1992

FCC and Congress re-instated rate regulations

must-carry or retransmission consent options for local commercial broadcasters

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

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

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

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

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

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

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?

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

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?