Cable television in the United States
This article needs additional citations for verification. (February 2009) |
According to reports released by the Federal Communications Commission, traditional cable television subscriptions in the US peaked around the year 2000, at 68.5 million total subscriptions.[5] Since then, cable subscriptions have been in slow decline, dropping to 54.4 million subscribers by December 2013.[6] Some telephone service providers have started offering television, reaching to 11.3 million video subscribers as of December 2013.[6]
History
First systems
It is claimed that the first cable television system in the United States was created in 1948 in
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, Polk, Cochranton, and Meadville.
Even though Eastern Pennsylvania, particularly the counties of Schuylkill and Carbon 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. 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 Memphis, Tennessee station to his community, which was located too far away to receive the signal with set-top antennas alone.[citation needed]
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 Seattle – 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's Bob Sullivan, Parsons charged a $125 one-time set-up fee and a $3 a month service fee.[9] In May 1968, Parsons was acknowledged as the father of community antenna television.[10]
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 broadcast stations to homes in Lansford for a fee. The system was featured in stories in The New York Times, Newsweek and The Wall Street Journal.[citation needed] 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.[citation needed]
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 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.[11]
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.[12] 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.[1]
During the
Regulation
Policy history
This section needs additional citations for verification. (March 2014) |
On August 1, 1949, T.J. Slowie, a secretary of the Federal Communications Commission, sent a letter to a Parsons requesting that he "furnish [to] the 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 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
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 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 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
During the early 1980s, various live
Programming
Basic cable
This section needs additional citations for verification. (March 2014) |
Cable
One of the first "basic cable" networks was
Premium cable
This section needs additional citations for verification. (March 2014) |
The origins of
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-to-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
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
À la carte cable
This section's factual accuracy may be compromised due to out-of-date information. (May 2010) |
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.
Analog technology allowed cable providers to offer standardized subscription packages using
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.
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.[20]
Digital cable
Starting in the late 1990s, advances in
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
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 (FCC), U.S.A Federal Bureau of Investigation (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.[21][22][23]
Cable television fees and programming lineups
This section needs additional citations for verification. (March 2014) |
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.,
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.
Subscriber fees
This section needs additional citations for verification. (March 2014) |
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 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.[25] 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
This section needs additional citations for verification. (August 2023) |
Year | Cable TV subscribers | Telephone company TV subscribers |
---|---|---|
Jan. 1970 | 4,500,000[26] | |
Jan. 1975 | 9,800,000[26] | |
Jan. 1980 | 16,000,000[26] | |
Jan. 1984 | 30,000,000[26] | |
Jan. 1985 | 32,000,000[26] | |
Jan. 1986 | 37,500,000[26] | |
Jan. 1987 | 41,100,000[26] | |
Jan. 1988 | 44,000,000[26] | |
Jan. 1989 | 47,500,000[26] | |
Jan. 1990 | 50,000,000[26] | |
Dec. 1990 | 51,700,000[27] | |
Dec. 1991 | 53,400,000[27] | |
Dec. 1992 | 55,200,000[27] | |
Dec. 1993 | 57,200,000[27] | |
Dec. 1994 | 59,700,000[27] | |
Dec. 1995 | 62,100,000[27] | |
Dec. 1996 | 63,500,000[5] | |
Dec. 1997 | 64,900,000[5] | |
Dec. 1998 | 66,100,000[5] | |
Dec. 1999 | 67,300,000[5] | |
Dec. 2000 | 68,500,000[5] | |
Jun. 2001 | 66,732,000[28] | |
Jun. 2002 | 66,472,000[28] | |
Jun. 2003 | 66,050,000[28] | |
Jun. 2004 | 66,100,000[28] | |
Jun. 2005 | 65,400,000[29] | |
Jun. 2006 | 65,300,000[29] | |
Dec. 2006 | 65,400,000[30] | 300,000[30] |
Dec. 2007 | 64,900,000[30] | 1,300,000[30] |
Dec. 2008 | 63,700,000[30] | 3,100,000[30] |
Dec. 2009 | 62,100,000[30] | 5,100,000[30] |
Dec. 2010 | 59,800,000[31] | 6,900,000[31] |
Dec. 2011 | 58,000,000[31] | 8,500,000[31] |
Dec. 2012 | 56,400,000[6] | 9,900,000[6] |
Dec. 2013 | 54,400,000[6] | 11,300,000[6] |
Dec. 2014 | 53,700,000[32] | 13,200,000[32] |
Dec. 2015 | 63,223,000[33] | 13,041,000[33] |
Dec. 2016 | 97,000,000[34] | |
Dec. 2017 | 94,300,000[35] | |
Dec. 2018 | 93,400,000[35] | |
Dec. 2019 | 88,600,000[35] | |
Dec. 2020 | 83,800,000[35] | |
Dec. 2021 | 80,000,000[35] | |
Dec. 2022 | 76,000,000[35] |
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
- 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 television in the United States
- 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
Notes
- ^ a b "History of Cable Television". National Cable & Telecommunications Association. Archived from the original on 2010-09-05. Retrieved 8 December 2012.
- ^ "History of Cable - CCTA". California Cable & Telecommunications Association. Archived from the original on September 19, 2020. Retrieved May 19, 2021.
- ^ "The Rise of Cable Television". Encyclopedia.com. Retrieved June 14, 2021.
- ^ a b "SNL Kagan U.S. Cable TV Summary Data". Marketing Charts. Retrieved 8 December 2012.
- ^ a b c d e f "8th Annual Video Competition Report". Federal Communications Commission. 14 Jan 2002. p. 87. Retrieved 29 Mar 2015.
- ^ a b c d e f "16th Report On Video Competition". Federal Communications Commission. 31 Mar 2015. Retrieved 26 Apr 2015.
- ^ a b Kennedy, Sam (4 March 2007). "Cable TV invented in Mahanoy City". The Morning Call. Allentown, PA.
- .
The claim, however, has always been clouded by questions and a lack of documentation. This paper reports the results of an investigation of the Walson story. It concludes that, as bright and promising as the Walson tale may be, it probably is not true. At the very least, the preponderance of evidence suggests that Walson got his start in the community antenna television business in late 1950, about the same time as many others around the country
- ^ Sullivan, Bob. "Cable TV: King of misleading come-ons." NBC News. 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.
- ^ "Leroy E. "Ed" Parsons Collection". The Cable Center. Archived from the original on 2008-04-13. Retrieved April 28, 2009.
- ^ "Past Cable Hall of Fame Honorees". The Cable Center. Archived from the original on 12 March 2014. Retrieved 12 March 2014.
- ^ Hodgins, Eric (1957-06-10). "Amid Ruins of an Empire a New Hollywood Arises". Life. p. 146. Retrieved April 22, 2012.
- ^ Massey, Kimberly. "Freeze of 1948". Museum of Broadcast Television. Archived from the original on 2009-03-23. Retrieved 2008-01-25.
- ^ "Cable Pioneer Yolanda Barco Dies at 74." Multichannel News, 6/12/2000, p. 16
- ISBN 9780826351630. Retrieved 2013-05-13.
- ^ Mullen, Megan. The Rise of Cable Programming in the United States: Revolution or Evolution? Austin, TX: University of Texas Press, 2003.
- ISSN 0362-4331. Retrieved 2019-10-05.
- ^ Holloway, Daniel (2019-06-11). "How FX Chief John Landgraf Built One of TV's Hottest Brands". Variety. Retrieved 2019-10-05.
- ^ Fabrikant, Geraldine. MEDIA; Need ESPN but Not MTV? Some Push for That Option. The New York Times: May 31, 2004.
- ^ Conda, Cesar V (2006-01-13). "Cable, À La Carte?". National Review. CBS News. Archived from the original on 2008-04-13. Retrieved 2007-07-05.
- ^ AllVid Notice of Inquiry, 25 FCC Rcd 4275 (adopted April 21, 2010)
- GigaOM.
- ^ 25 FCC Rcd 14657, 14661 (adopted October 14, 2010)
- ^ Goodale, James C., and Frieden, Rob. All About Cable and Broadband. Law Journal Press, 2010, sec. 4.02[1], p. 4-7 & note 9, and sec. 4.02[4], pp. 4-28 and 4-29. The federal prohibition is found at 47 U.S.C. sec. 541(a)(1).
- ^ Nocera, Joe (April 28, 2017). "ESPN Can't Afford to Go On Like This". Bloomberg.com. Retrieved April 28, 2017.
- ^ a b c d e f g h i j "Cable Television--Systems and Subscribers statistics - USA Census numbers". allcountries.org. Retrieved 2023-03-09.
- ^ a b c d e f "4th Annual Video Competition Report". United States Federal Communications Commission. 13 Jan 1998. p. 142. Retrieved 29 Mar 2015.
- ^ a b c d "11th Annual Video Competition Report". Federal Communications Commission. 4 Feb 2005. p. 115. Retrieved 29 Mar 2015.
- ^ a b "13th Annual Video Competition Report". Federal Communications Commission. 16 Jan 2009. p. 143. Retrieved 29 Mar 2015.
- ^ a b c d e f g h "FCC Releases 14th Video Competition Report". Federal Communications Commission. 20 Jul 2012. p. 60. Retrieved 29 Mar 2015.
- ^ a b c d "15th Report On Video Competition". Federal Communications Commission. 22 Jul 2013. p. 61. Retrieved 29 Mar 2015.
- ^ a b "17th Report On Video Competition" (PDF). Federal Communications Commission. 6 May 2016. Retrieved 25 October 2016.
- ^ a b "18th Report On Video Competition" (PDF). Federal Communications Commission. 17 January 2017. Retrieved 7 March 2017.
- ^ "Number of pay TV households in the U.S. 2026". Statista. Retrieved 2023-01-18.
- ^ a b c d e f "IBISWorld - Industry Market Research, Reports, and Statistics". www.ibisworld.com. Retrieved 2023-01-18.
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., "Cable TV: From Community Antennas to Wired Cities", 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 magazine, May 18, 1970
- Smith, Ralph Lee, The Wired Nation; Cable TV: the electronic communications highway. New York, Harper & Row, 1972. ISBN 0-06-090243-4
- Southwick, Thomas P. Distant Signals: How Cable TV Changed the World of Telecommunications. Overland Park, KS: Primedia Intertec, 1998.