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?How is the cable industry organized?

How does CABLE differ from BROADCASTING?

Programs reach TV sets through wires (cable) rather than through the air

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 systemsin communities where mountains or tall

buildings blocked broadcast signalsserved 10% of USA, with 12 channelsAdvantages: no over-the-air

interference, increased channel capacity

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

How Do Cable Systems Work?

Headend: computerized nerve centerdownlinks program channels from

satelliterelays 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

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 biddingSome 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 1984represented more support and protection

for cable industryhowever, ended rate regulation and must-

carry rulescable 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

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

Cable’s NARROWCASTING =

providing specialized programming for diverse and fragmented groups

CNN Revolutionizes TV News

24-hour TV news channel, 1980, Turner Broadcasting

1982: Turner launched HEADLINE NEWS channel as well

lost money until 1985emerged as major news competitor

during Persian Gulf War, 1991, with 24-hour coverage

What is the CNN formula, and how has

it affected international news

coverage?

The CNN “formula”

emphasizes news itself rather than celebrity anchors

24-hour format allowed unprecedented viewer access

delivers timely news in greater detailoffers live, unedited continuous coverage of

breaking eventsemphasizes 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 camerainnovative camera anglesfast-paced cutsbright colors

How has MTV shaped global youth cultures?

Beyond the basics: premium cable

movie channels pay-per-viewinteractive services

(banking, shopping, games, internet)

digital cable radio

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 expensiveFCC restricted DBS services in 1970s and

1980sFull, legalized DBS services in 1994

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

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?

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

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