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Cable's rise

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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Cable's rise

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  1. 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

  2. 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

  3. 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

  4. Average monthly cable rates

  5. 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

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