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Cable television Cable television is a system of delivering television programming to consumers via radio frequency (RF) signals transmitted through coaxial cables, or in more recent systems, light pulses through fibre-optic cables. This contrasts with bro ...
first became available in the United States in 1948. By 1989, 53 million U.S. households received cable television subscriptions, with 60 percent of all U.S. households doing so in 1992. with Data by SNL Kagan shows that about 58.4% of all American homes subscribe to basic cable television services. Most cable viewers in the U.S. reside in the suburbs and tend to be
middle class The middle class refers to a class of people in the middle of a social hierarchy, often defined by occupation, income, education, or social status. The term has historically been associated with modernity, capitalism and political debate. C ...
; cable television is less common in low income, urban, and rural areas. According to reports released by the
Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdicti ...
, traditional cable television subscriptions in the US peaked around the year 2000, at 68.5 million total subscriptions. Since then, cable subscriptions have been in slow decline, dropping to 54.4 million subscribers by December 2013. Some telephone service providers have started offering television, reaching to 11.3 million video subscribers as of December 2013.


History


First systems

It is claimed that the first cable television system in the United States was created in 1948 in
Mahanoy City, Pennsylvania Mahanoy City (pronounced MAHA-noy, also MA-noy locally) is a borough located southwest of Wilkes-Barre and 13 miles southwest of Hazleton, in northern Schuylkill County, Pennsylvania. It is part of the Coal Region of Pennsylvania and is locate ...
by
John Walson John Walson Sr. (1915-1993), from Mahanoy City, Pennsylvania, is recognized by the U.S. Congress and the National Cable Television Association as having invented cable TV in the spring of 1948, although this is disputed. Biography Walson, owne ...
to provide television signals to people whose reception was poor because of tall mountains and buildings blocking TV signals. Mahanoy City was ideally suited for CATV services, since broadcast television signals could easily be received via mountaintop antennas and retransmitted by "twin-lead" or "ladder-lead" cable to the valley community below (where broadcast reception was very poor). Walson's "first" claim is highly disputed, since his claimed starting date cannot be verified. The
United States Congress The United States Congress is the legislature of the federal government of the United States. It is Bicameralism, bicameral, composed of a lower body, the United States House of Representatives, House of Representatives, and an upper body, ...
and the National Cable Television Association have recognized Walson as having invented cable television in the spring of 1948. A CATV system was developed in the late 1940s by James F. Reynolds in his town of Maple Dale, Pennsylvania, which grew to include Sandy Lake, Stoneboro,
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, Cochranton, and Meadville. Even though Eastern Pennsylvania, particularly the counties of Schuylkill and
Carbon Carbon () is a chemical element with the symbol C and atomic number 6. It is nonmetallic and tetravalent—its atom making four electrons available to form covalent chemical bonds. It belongs to group 14 of the periodic table. Carbon ma ...
in the anthracite coal region, had several of the earliest CATV systems, there were other CATV entrepreneurs scattered throughout the United States. One was James Y. Davidson of
Tuckerman, Arkansas Tuckerman is a city in Jackson County, Arkansas, United States. The population was 1,862 at the 2010 census. Each year on the second weekend of May, Tuckerman hosts Hometown Days, for the town and fundraiser for the Tuckerman Volunteer Ambulance ...
. Davidson was the local movie theater manager and ran a radio repair business on the side. In 1949, he set up a cable system to bring the signal of a newly launched
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station to his community, which was located too far away to receive the signal with set-top antennas alone. Leroy E. "Ed" Parsons built the first cable television system in the United States that used coaxial cable, amplifiers, and a community antenna to deliver television signals to an area that otherwise would not have been able to receive broadcast television signals. In 1948, Parsons owned a radio station in Astoria, Oregon. A year earlier he and his wife had first seen television at a broadcasters' convention. In the spring of 1948, Parsons learned that radio station KRSC (now KKNW) in
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– 125 miles away – was going to launch a television station that fall. He found that with a large antenna he could receive KRSC's signal on the roof of the Hotel Astoria and from there he ran coaxial cable across the street to his apartment. When the station (now KING-TV) went on the air in November 1948, Parsons was the only one in town able to see television. According to
MSNBC MSNBC (originally the Microsoft National Broadcasting Company) is an American news-based pay television cable channel. It is owned by NBCUniversala subsidiary of Comcast. Headquartered in New York City, it provides news coverage and political ...
's Bob Sullivan, Parsons charged a $125 one-time set-up fee and a $3 a month service fee.Sullivan, Bob.
Cable TV: King of misleading come-ons
" ''
NBC News NBC News is the news division of the American broadcast television network NBC. The division operates under NBCUniversal Television and Streaming, a division of NBCUniversal, which is, in turn, a subsidiary of Comcast. The news division's v ...
.'' January 28, 2008. Retrieved on January 29, 2008. Web page excerpted from GOTCHA CAPITALISM by Bob Sullivan. Copyright (c) 2007 by BobSullivan. Reprinted by arrangement with The Random House Publishing Group.
In May 1968, Parsons was acknowledged as the father of community antenna television.


First commercial system

In 1950, Robert Tarlton developed the first commercial cable television system in the United States. Tarlton organized a group of fellow television set retailers in Lansford, Pennsylvania, a town in the same region as Mahanoy City, to offer television signals from
Philadelphia, Pennsylvania Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
broadcast stations to homes in Lansford for a fee. The system was featured in stories in ''
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'', ''
Newsweek ''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis (businessman), Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print m ...
'' and ''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
''. The publicity of this successful early system set off a wave of cable system construction throughout the United States, and Tarlton himself became a highly sought-after consultant. Tarlton used equipment manufactured by a new company, Jerrold Electronics. After seeing the success of the Tarlton system in 1950, Jerrold president (and future Pennsylvania governor)
Milton Shapp Milton Jerrold Shapp (born Milton Jerrold Shapiro; June 25, 1912 – November 24, 1994) was an American businessman and politician who served as the 40th governor of Pennsylvania from 1971 to 1979 and the first Jewish governor of Pennsylvania. H ...
reorganized his company to build equipment for the now-growing cable industry. In 1952, Tarlton went to work for Jerrold, helping to construct most of the major systems built by that company in the 1950s. Tarlton was also responsible for training many of the major operators of cable systems in the 1950s. In 2003, Tarlton was inducted in the Cable Television Hall of Fame for his work building the first widely publicized cable television company in America.


Early growth

The rise of free broadcast television during the 1950s greatly threatened the established entertainment industry by offering an alternative to the common practice of regularly paying to see films. The possibility of turning free television viewers into paid television viewers was discussed early on. For example, after 25 million American televisions tuned to a musical version of ''Cinderella'' in 1957, executives calculated that had the network received 25¢ for each television tuned to the show, it would have earned more than $6 million without distribution costs. However, due to many legal, regulatory and technological obstacles, cable television in the United States in its first 24 years was used almost exclusively to relay terrestrial commercial television stations to remote and inaccessible areas. It also became popular in other areas in which mountainous terrain caused poor reception over the air. Original programming over cable came in 1972 with deregulation of the industry. During the
Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdicti ...
(FCC)'s freeze on television licenses from 1948 to 1952, the demand for television increased. Since new television station licenses were not being issued, the only way the demand was met, even in communities with one or more operating broadcast stations, was by Community Antenna Television (CATV), as early cable was known (so named because of the literal sharing of a very large receiving antenna by an entire community).


Regulation


Policy history

On August 1, 1949, T.J. Slowie, a secretary of the Federal Communications Commission, sent a letter to a Parsons requesting that he "furnish othe Commission full information with respect to the nature of the system you may have developed and may be operating." This is the first known involvement of the FCC in CATV. An FCC lawyer, E. Stratford Smith, determined the Commission could exercise
common carrier A common carrier in common law countries (corresponding to a public carrier in some civil law systems,Encyclopædia Britannica CD 2000 "Civil-law public carrier" from "carriage of goods" usually called simply a ''carrier'') is a person or compan ...
jurisdiction over CATV. The FCC did not act on this opinion, and Smith later changed his mind after working in the cable industry for some time. Further, Smith's decision was influenced by his experiences testifying several times in United States Senate committee hearings. Senator, and future FCC commissioner, Kenneth A. Cox attended and participated in these hearings. He prepared a report for the Senate Committee on Interstate and Foreign Commerce against CATV and supporting the FCC policy of a television station in every community. In 1959 and 1961, bills were introduced in Congress of the United States that would have determined the role of the FCC in CATV policy. Chief architect of some of these bills was attorney Yolanda G. Barco. She was one of the first female executives in cable, described as the "principal attorney for cable television interests during the industry's formative years". The 1959 bill, which made it to the floor of the Senate, would have limited FCC jurisdiction to CATV systems within the contours (or the broadcast range) of a single station; however, the bill was defeated. The 1961 bill proposed by the FCC would have given the Commission authority over CATV as CATV, and not as a common carrier or broadcaster. The Commission could then adopt rules and regulations "in the public interest" to govern CATV in any area covered both by CATV and broadcast television. No action was ever taken on this bill. More important than Congressional action in determining Federal Communications Commission CATV policy were court cases and FCC hearings. In ''Frontier Broadcasting Co. v. Collier'', broadcasters tried to compel the FCC to exercise common carrier authority over 288 CATV systems in 36 states. The broadcasters maintained that CATV went against the FCC's Sixth Report and Order, which advocated at least one television station in every community. In 1958, the FCC decided that CATV was not really a common carrier since the subscriber did not determine the programming. Carter Mountain Transmission Corp., a common carrier that already transmitted television signals by microwave to CATV systems in several Wyoming towns, wanted to add a second signal to two of the towns and add two signals to a previously unserved town. A television station in one town opposed this and protested to the FCC on the grounds of economic damage. A hearing examiner supported Carter Mountain, but the Commission supported the television station. The case was taken to appeal, and the Federal Communications Commission won. "The fact that no broadcaster has actually gone off the air due to CATV competition at the time the government moved to expand its authority (nor have any since) did not stay the momentum for the expansion of regulatory authority. That some economic impact was merely plausible sufficed as the basis for government concern and government action". The FCC overruled a hearing examiner in favor of broadcasters again in the "San Diego Case". The CATV systems in San Diego, California wanted to import stations from Los Angeles, some of which could be seen in San Diego; the television stations in San Diego did not want the signals to be imported. The television stations won, not allowing the signals on future cable lines in San Diego and its environs. The FCC's reasoning was to protect existing and future
UHF Ultra high frequency (UHF) is the ITU designation for radio frequencies in the range between 300 megahertz (MHz) and 3 gigahertz (GHz), also known as the decimetre band as the wavelengths range from one meter to one tenth of a meter (on ...
stations in San Diego. (One of the pioneers of cable TV was KSA-TV) In the First Report and Order by the Federal Communications Commission on CATV, the FCC gave itself the power to regulate CATV. This Report and Order was designed to protect television stations in small towns. It did this by imposing two rules, which slightly altered form: one requires that a CATV system carry all local stations in which the CATV system is in the A- (best reception) contour of the station. The second prohibits the importation of programs from a non-local station that duplicates programming on a local station if the duplication is shown either 15 days before or after its local airing. This 1965 report reasoning is as follows: 1) CATV should carry local stations because CATV supplements, not replaces, local stations; and, the non-carriage of local stations gives distant stations an advantage since people will not change from the cable to the antenna to see a local station; 2) non-carriage is "inherently contrary to the public interest"; and, 3) CATV duplication of local programming via distant signals is unfair since broadcasters and CATV do not compete for programs on an equal footing; the FCC recommended "a reasonable measure of exclusivity". The 1966 Second Report and Order made some minor changes in the First Report and Order and added a major regulation. This was designed to protect UHF stations in large cities. The new rule disallowed the importation of distant signals into the top 100 markets, thus making CATV at that time profitable only in cities with poor reception. In 1968, the Supreme Court upheld the FCC's right to make rules and regulations concerning CATV. In its decision on ''United States v. Southwestern Cable'', the "San Diego Case", it said "the Commission's authority over 'all interstate ... communications by wire or radio' permits the regulation of CATV systems."


Carriage

Carriage refers to the agreement under which a cable provider rebroadcasts a television channel on its network. The
Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdicti ...
puts various requirements on these agreements, which may include channels cable providers are required to carry, and moderates disputes over the fees and conditions of any particular agreement.


Public-access television

In 1969, the FCC issued rules requiring all CATV systems with over 3,500 subscribers to have facilities for local origination of programming by April 1, 1971; the date was later suspended. In 1972, Dean Burch steered the FCC into a new area of regulation. It lifted its restrictions on CATV in large cities, but now put the burden of more
local programming The terms local programme, local programming, local content or local television refers to a television program made by a television station or independent television producer for broadcast only within the station's transmission area or televisio ...
on CATV operators. In 1976, the FCC used its rule-making power to require that new systems now had to have 20 channels, and that cable providers with systems of 3,500 subscribers or more had to provide
Public, educational, and government access Public-access television is traditionally a form of non-commercial mass media where the general public can create content television programming which is narrowcast through cable television specialty channels. Public-access television was creat ...
(PEG) services with facilities and equipment necessary to use this channel capacity. During the early 1980s, various live local programs with local interests were rapidly being created all over the United States in most major television markets. Before there was public access TV, one of Time Inc.'s pioneering stations was in Columbus, Ohio, where Richard Sillman became the nation's youngest cable television director at age 16.


Programming


Basic cable

Cable television programming is often divided between basic and premium television. Basic cable networks are generally those with wide carriage on the lowest service tiers of multichannel television providers. In the era of analog cable television, these channels were typically transmitted without any
encryption In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can d ...
or other scrambling methods. These networks can vary in format, ranging from those targeting mainstream audiences, to specialty networks that are focused on specific
genre Genre () is any form or type of communication in any mode (written, spoken, digital, artistic, etc.) with socially-agreed-upon conventions developed over time. In popular usage, it normally describes a category of literature, music, or other f ...
s, demographics, or niches. Basic cable networks depend on a mix of per-subscriber carriage fees paid by the provider, and revenue from advertising sold on the service, as their sources of revenue. One of the first "basic cable" networks was TBS—which was initially established as a satellite uplink of an independent television station (the present-day WPCH-TV) in Atlanta, Georgia. TBS would serve as the starting point for other major basic cable ventures by its owner,
Ted Turner Robert Edward "Ted" Turner III (born November 19, 1938) is an American entrepreneur, television producer, media proprietor, and philanthropist. He founded the Cable News Network (CNN), the first 24-hour cable news channel. In addition, he ...
, including CNN—the first 24-hour
news channel News broadcasting is the medium of broadcasting various news events and other information via television, radio, or the internet in the field of broadcast journalism. The content is usually either produced locally in a radio studio or tele ...
. Another early network was the CBN Satellite Service, a Christian television service launched by televangelist Pat Robertson in April 1977 as the television ministry of his Christian Broadcasting Network, that was delivered by
satellite A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioiso ...
as a more efficient way to distribute the programming. For years, the CBN Satellite Service (later renamed CBN Cable Network in 1984) mixed
religious programming Religious broadcasting, sometimes referred to as faith-based broadcasts, is the dissemination of television and/or radio content that intentionally has religious ideas, religious experience, or religious practice as its core focus. In some coun ...
with reruns of classic television series to fill out its 24-hour schedule. The network changed its name to
The CBN Family Channel The American cable and satellite television network that is now known as Freeform was originally launched as the CBN Satellite Service on April 29, 1977, and has gone through several different owners (and six different name changes) during its h ...
in 1988 (revised to The Family Channel in 1990 once CBN spun it out to an indirectly owned for-profit company,
International Family Entertainment ABC Family Worldwide is a subsidiary of Walt Disney Television that is responsible for the operations of the U.S. cable network Freeform. The company was originally formed as International Family Entertainment, a spin-off of the Christian Broa ...
). It was subsequently renamed Fox Family in 1998 after it was acquired by a partnership between Fox Entertainment Group and Saban Entertainment, then ABC Family after its 2001 sale to ABC parent
The Walt Disney Company The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California. Disney was originally founded on Octobe ...
, and finally to its current name, Freeform in 2016.


Premium cable

The origins of
premium cable Pay television, also known as subscription television, premium television or, when referring to an individual service, a premium channel, refers to subscription-based television services, usually provided by multichannel television providers, but ...
lie in two areas: early pay television systems of the 1950s and 1960s and early cable (CATV) operators' small efforts to add extra channels to their systems that were not derived from free-to-air signals. In more recent years, premium cable refers to networks–such as Home Box Office (HBO), Cinemax, Showtime, The Movie Channel,
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, Starz, MoviePlex, and
Epix Epix (pronounced ''epics'' and stylized as P) is an American premium cable and satellite television network owned by the Epix Entertainment LLC subsidiary of Metro-Goldwyn-Mayer (MGM), a subsidiary of Amazon's MGM Holdings, Inc. The channel's ...
–that scramble or encrypt their signals so that only those paying additional monthly fees to their cable system can legally view them (via the use of a converter box). Because their programming is commercial-free (except for promotions in-between shows for the networks' own content), these networks command much higher fees from cable systems. Premium services have the discretion to offer the service unencrypted to a certain number of participating cable providers during a short-term free preview period to allow those who do not receive a premium service to sample its programming, in an effort for subscribers to the participant provider to consider obtaining a subscription to the offered service to continue viewing it following the preview period. HBO was the first true premium cable (or "pay-cable") network as well as the first television network intended for cable distribution on a regional or national basis; however, there were notable precursors to premium cable in the pay-television industry that operated during the 1950s and 1960s (with a few systems lingering until 1980), as well as some attempts by free-the-air broadcasters during the 1970s and 1980s that ultimately folded as their subscriber bases declined amid viewer shifts to receiving premium television content delivered by cable providers that had begun operating in metropolitan areas throughout that period. In its infancy, following its launch over Service Electric Cable's Wilkes-Barre, Pennsylvania, system on November 8, 1972, HBO had been quietly providing pay programming to CATV systems in
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
and New York, using
microwave Microwave is a form of electromagnetic radiation with wavelengths ranging from about one meter to one millimeter corresponding to frequencies between 300 MHz and 300 GHz respectively. Different sources define different frequency ra ...
technology to transmit its programming to cable and MMDS providers. In 1975, HBO became the first cable network to be delivered nationwide by
satellite A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioiso ...
transmission. Although such conversions are rare, some present-day basic cable channels have originated as premium services, including the
Disney Channel Disney Channel, sometimes known as simply Disney, is an American pay television channel that serves as the flagship property of Disney Branded Television, a unit of the Disney General Entertainment Content division of The Walt Disney Comp ...
(from 1983 to 1997), AMC (from 1984 to 1988) and Bravo (from 1982 to 1994); some of these services eventually switched to an advertiser-supported model after transitioning to an unencrypted structure. Other fledgling premium services (such as early HBO spin-off efforts Take Two and Festival, Home Theater Network and Spotlight) have lasted for a few years, only to fail due to the inability to compete against established premium services that had broader distribution and higher subscriber totals. Since cable television channels are not broadcast on public spectrum, they are not subject to FCC regulations on indecent material. Premium networks generally offer broader portrayal of profanity, sex and violence; some premium services–such as Cinemax and The Movie Channel (which have carried such programs as part of their late-night schedules) as well as Playboy TV, one of the first adult-oriented premium cable services–have even offered softcore pornography as part of their programming inventory. While there are no FCC rules that apply to content on basic cable networks, many self-regulate their program content due to demographic targeting, or because of viewer and advertiser expectations, particularly with regard to profane language and nudity. In recent years, however, some networks have become more lenient towards content aired during late-primetime and late-night hours. In addition, some channels, such as FX, have positioned themselves with an original programming direction more akin to premium services, with a focus on more "mature" and creator-driven series to help attract critical acclaim and key demographic viewership.
Turner Classic Movies Turner Classic Movies (TCM) is an American movie-oriented pay-TV network owned by Warner Bros. Discovery. Launched in 1994, Turner Classic Movies is headquartered at Turner's Techwood broadcasting campus in the Midtown business district of ...
has also aired uncut prints of theatrical films that have featured nudity, sexual content, violence and profanity, as had the now-ad-supported SundanceTV and IFC, the former of which began as a premium service, spun off from Showtime. Commercial-free basic channels have tended to rate their film presentations using the TV Parental Guidelines, instead of the
Motion Picture Association of America The Motion Picture Association (MPA) is an American trade association representing the five major film studios of the United States, as well as the video streaming service Netflix. Founded in 1922 as the Motion Picture Producers and Distrib ...
(MPAA) ratings system.


''À la carte'' cable

Since the early 21st century, some have advocated for laws that would require cable providers to offer their subscribers their own "''à la carte''" choice of channels. Unlike the standardized subscription packages being offered currently, an à la carte model requires the customer to subscribe to each channel individually. It is not clear how this might affect subscription costs over all, but it would allow a parent to censor their child's viewing habits by removing any channel they deem objectionable from their subscription. Offering such individualized subscriptions would have been relatively complicated and labor-intensive using analog cable, but the widespread adoption of
digital cable Digital cable is the distribution of cable television using digital data and video compression. The technology was first developed by General Instrument. By 2000, most cable companies offered digital features, eventually replacing their previ ...
&
IPTV Internet Protocol television (IPTV) is the delivery of television content over Internet Protocol (IP) networks. This is in contrast to delivery through traditional terrestrial, satellite, and cable television formats. Unlike downloaded med ...
technologies have now made it more feasible. Analog technology allowed cable providers to offer standardized subscription packages using low-pass filters and notch filters. A low-pass filter lets lower frequency signals pass while removing higher frequency signals. Using such filtering, the cable provider offered "economy basic" subscriptions (local channels only; these appear at the lowest frequency signals, denoted by the lowest channel numbers) and "basic" subscriptions (local channels plus a handful of national channels with frequencies just higher than the local stations). Notch filters were used to filter out a "notch" of channels from an analog cable signal (for example, channels 45-50 could be "notched" out and the subscriber still receives channels below 45 and above 50). This allowed cable providers to open standardized ranges of premium channels to the subscriber, but notch filtering was not a feasible way to offer each subscriber their own individual choice of channels. To offer "à la carte" service using an analog signal, a cable provider would most likely have to scramble every channel and send a technician to each subscriber's home to unscramble their choice of channels on their set-top box. Each change an analog cable customer made in their subscription would then require an additional home visit to reprogram their set-top box. Offering the customer their choice of channels à la carte has become more cost-effective with the advent of digital cable, because a digital set-top converter box can be programmed remotely.
IPTV Internet Protocol television (IPTV) is the delivery of television content over Internet Protocol (IP) networks. This is in contrast to delivery through traditional terrestrial, satellite, and cable television formats. Unlike downloaded med ...
(i.e., delivering TV channels over an internet or IP-based network) is even less labor-intensive, delivering channels to the consumer automatically. Currently, digital cable and satellite delivery systems with standardized subscriptions are providing an opportunity for networks that service niche and minority audiences to reach millions of households, and potentially, millions of viewers. Since à la carte could force each channel to be sold individually, such networks worry they could face a significant reduction in subscription fees and advertising revenue, and potentially be driven out of business. Many cable/satellite providers are therefore reluctant to introduce an à la carte business model. They fear it will reduce the overall choice of viewing content, making their service less appealing to customers. Some believe the à la carte option could actually increase overall sales by allowing potential subscribers a less expensive entry point into the cable marketplace. Some cable/satellite providers might wish to sell channels à la carte, but their contracts with programmers often require the more standardized approach.


Digital cable

Starting in the late 1990s, advances in
digital signal processing Digital signal processing (DSP) is the use of digital processing, such as by computers or more specialized digital signal processors, to perform a wide variety of signal processing operations. The digital signals processed in this manner are ...
(primarily Motorola's
DigiCipher 2 DigiCipher 2, or simply DCII, is a proprietary standard format of digital signal transmission and it doubles as an encryption standard with MPEG-2/MPEG-4 signal video compression used on many communications satellite television and audio signals. T ...
video compression technology in North America) gave rise to wider implementation of
digital cable Digital cable is the distribution of cable television using digital data and video compression. The technology was first developed by General Instrument. By 2000, most cable companies offered digital features, eventually replacing their previ ...
services. Digital cable television provides many more television channels over the same available bandwidth, by converting cable channels to a digital signal and then compressing the signal. Currently, most systems offer a hybrid analog/digital cable system. This means they offer a certain number of analog channels via their basic cable service with additional channels being made available via their digital cable service. Digital cable channels are touted as being able to offer a higher quality picture than their analog counterparts. This is often true, with a dramatic improvement in
chroma resolution Chroma subsampling is the practice of encoding images by implementing less resolution for chroma information than for luma information, taking advantage of the human visual system's lower acuity for color differences than for luminance. It is ...
(120 lines for
NTSC The first American standard for analog television broadcast was developed by National Television System Committee (NTSC)National Television System Committee (1951–1953), Report and Reports of Panel No. 11, 11-A, 12–19, with Some supplement ...
versus 270 for digital). However, digital compression has a tendency to soften the quality of the television picture, particularly of channels that are more heavily compressed. Pixelation and other artifacts are often visible.


Set-top boxes

Subscribers wishing to have access to digital cable channels must have a special cable converter box, (or, more recently, a "Digital Cable Ready" television) and a CableCARD to receive them. AllVid is a CableCARD replacement proposed by the U.S.
Federal Communications Commission The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdicti ...
(FCC), U.S.A
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice ...
(FBI), intended to provide bidirectional compatibilities such as interactive programming guides, video-on-demand and pay-per-view, since retail CableCARD-ready devices are unable to access such systems.25 FCC Rcdbr>1465714661
(adopted October 14, 2010)


Cable television fees and programming lineups

Cable television systems impose a monthly fee depending on the number and perceived quality of the channels offered. Cable television subscribers are offered various packages of channels one can subscribe to. The cost of each package depends on the type of channels offered (basic vs. premium) and the quantity. These fees cover the fees paid to individual cable channels for the right to carry their programming, as well as the cost of operating and maintaining the cable television system so that their signals can reach subscribers' homes. Additional cable television franchise fees and taxes are often tacked on by local, state, and federal governments. Most cable systems divide their channel lineups ("tiers") into three or four basic channel packages. A must-carry rule requires all cable television systems to carry all full-power local commercial broadcast stations in the designated television market on their lineups, unless those stations opt to invoke retransmission consent and demand compensation, in which case the cable provider can decline to carry the channel (especially if the provider feels that the rate of carrying an existing service would result in an increase of the average price of a tier to levels to which it could result in a subscriber possibly dropping the service). Cable television systems are also required to offer a subscription package that provides these broadcast channels at a lower rate than the standard subscription rate. The basic programming package offered by cable television systems is usually known as "basic cable" and provides access to a large number of cable television channels, as well as broadcast television networks (e.g., ABC, CBS,
The CW ''The'' () is a grammatical article in English, denoting persons or things already mentioned, under discussion, implied or otherwise presumed familiar to listeners, readers, or speakers. It is the definite article in English. ''The'' is the ...
, Fox, NBC, PBS),
public, educational, and government access Public-access television is traditionally a form of non-commercial mass media where the general public can create content television programming which is narrowcast through cable television specialty channels. Public-access television was creat ...
channels, free or low-cost public service channels such as C-SPAN and NASA TV, and several channels devoted to infomercials, brokered televangelism and
home shopping Home shopping is the electronic retailing and home shopping channels industry, which includes such billion dollar television-based and e-commerce companies as Shop LC, HSN, Gemporia, TJC, QVC, eBay, ShopHQ, Buy.com and Amazon.com, as well as ...
to defray costs. Some providers may provide a small number of national cable networks in their basic lineups. Most systems differentiate between basic cable, which has locals, home shopping channels and local-access television channels, and expanded basic (or "standard"), which carries most of the better-known national cable networks. Most basic cable lineups have approximately 20 channels overall, while expanded basic has channel capacity for as many as 70 channels. Under U.S. regulations, the price of basic cable can be regulated by local authorities as part of their franchise agreements. Standard, or expanded basic, cable is not subject to price controls. In addition to the basic cable packages, all systems offer premium channel add-on packages offering either just one premium network (for example, HBO) or several premium networks for one price (for example, HBO and Showtime together). Finally, most cable systems offer pay-per-view channels where users can watch individual movies, live events, sports and other programs for an additional fee for single viewing at a scheduled time (this is generally the main place where pornographic content airs on American cable). Some cable systems have begun to offer on-demand programming, where customers can select programs from a list of offerings including recent releases of movies, concerts, sports, first-run television shows and specials and start the program whenever they wish, as if they were watching a DVD or a VHS tape (although some on demand services, generally those offered by broadcast networks, restrict the ability to fast forward through a program). Some of the offerings have a cost similar to renting a movie at a video store while others are free. On-demand content has slowly been replacing traditional pay-per-view for pre-recorded content; pay-per-view remains popular for live combat sports events (boxing, mixed martial arts and professional wrestling). Additional subscription fees are also usually required to receive digital cable channels. Many cable systems operate as ''de facto'' monopolies in the United States. While exclusive franchises are currently prohibited by federal law, and relatively few franchises were ever expressly exclusive, frequently only one cable company offers cable service in a given community.Goodale, James C., and Frieden, Rob. ''All About Cable and Broadband''. Law Journal Press, 2010, sec. 4.02 p. 4-7 & note 9, and sec. 4.02 pp. 4-28 and 4-29. The federal prohibition is found at 47 U.S.C. sec. 541(a)(1). Overbuilders in the U.S., other than telephone companies with existing infrastructure, have traditionally had severe difficulty in financial and market penetration numbers. Overbuilders have had some success in the MDU market, in which relationships are established with landlords, sometimes with contracts and exclusivity agreements for the buildings, sometimes to the anger of tenants. The rise of
direct broadcast satellite Satellite television is a service that delivers television programming to viewers by relaying it from a communications satellite orbiting the Earth directly to the viewer's location. The signals are received via an outdoor parabolic antenna comm ...
systems providing the same type of programming using small satellite receivers, and of Verizon FiOS and other recent ventures by incumbent local exchange carriers such as U-verse, have also provided competition to incumbent cable television systems.


Subscriber fees

Many cable channels charge cable providers "subscriber fees," in order to carry their content. The fee that the cable service provider must pay to a cable television channel can vary depending on whether it is a basic or premium channel and the perceived popularity of that channel. Because cable service providers are not required to carry all cable channels, they may negotiate the fee they will pay for carrying a channel. Typically, more popular cable channels command higher fees. For example,
ESPN ESPN (originally an initialism for Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by ESPN Inc., owned jointly by The Walt Disney Company (80%) and Hearst Communications (20%). The ...
typically charges $10 per month for its suite of networks ($7 for the main channel alone), by far the highest of any non-premium American cable channel, comparable to the premium channels, and rising rapidly. Other widely viewed cable channels have been able to command fees of over 50 cents per subscriber per month; channels can vary widely in fees depending on if they are included in package deals with other channels.


Statistics


See also

* Big Three television networks * Communications in the United States * Fourth television network * High-definition television in the United States *
Lists of television stations in the United States The pages below contain lists of television stations in the U.S. by call sign. Historically, stations to the east of the Mississippi River were given call signs beginning with the letter ''W'', stations to the west ''K''. However, there are except ...
* List of United States cable and satellite television networks * List of United States over-the-air television networks * List of United States television markets * Multichannel video programming distributor * Satellite television in the United States * Television in the United States * Television news in the United States * United States cable news *
Captain Midnight broadcast signal intrusion On April 27, 1986, American electrical engineer and business owner John R. MacDougall (using the pseudonym "Captain Midnight") jammed the Home Box Office (HBO) satellite signal on Galaxy 1 during a showing of the film '' The Falcon and the ...


Notes


Further reading

* Caruso, Thomas P and Mark R Harsch
"Joint Ventures in the Cable and Videotex Industries"
Masters' Thesis in Management, Sloan School of Management, Massachusetts Institute of Technology (MIT), Jun 1984. * Eisenmann, Thomas R.

'' Harvard Business School Weekly Newsletter'', July 10, 2000 * Lockman, Brian and Dan Sarvey. ''Pioneers of Cable Television''. Jefferson, NC: McFarland, 2005. * Moss, Mitchell L.; Payne, Frances
"Can Cable Keep Its Promise?"
''New York Affairs'', Volume 6, Number 4. New York University. 1981 * Mullen, Megan. ''The Rise of Cable Programming in the United States: Revolution or Evolution?'' Austin, TX: University of Texas Press, 2003. * Mullen, Megan. ''Television in the Multichannel Age: A Brief History of Cable Television''. Malden, MA: Blackwell, 2008. * Parsons, Patrick R. ''Blue Skies: A History of Cable Television''. Philadelphia: Temple UP, 2008. * Parsons, Patrick R and Robert M. Frieden. ''The Cable and Satellite Television Industries''. Needham Heights, MA: Allyn & Bacon, 1998. * Smith, Ralph Lee, "The Wired Nation", ''
The Nation ''The Nation'' is an American liberal biweekly magazine that covers political and cultural news, opinion, and analysis. It was founded on July 6, 1865, as a successor to William Lloyd Garrison's '' The Liberator'', an abolitionist newspaper t ...
'' magazine, May 18, 1970 * Smith, Ralph Lee, ''The Wired Nation; Cable TV: the electronic communications highway''. New York, Harper & Row, 1972. * Southwick, Thomas P. ''Distant Signals: How Cable TV Changed the World of Telecommunications''. Overland Park, KS: Primedia Intertec, 1998.


External links


General Cable Television Industry and Regulation Information Fact Sheet by the FCC

Top 25 MSO
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