Cable and SatelliteFrom Principles of Electronic Media (Davie & Upshaw, 2006)

CableFirst Mom and Pop System: E. L. Parsons from Astoria Oregon placed an antenna in a position where it could receive a television signal from KRSC (now KING-TV) in Seattle, Washington so that he and his wife could watch high school football games. When others heard, word spread and Ed routed cable to local gathering places for a fee of $125.

CableAppliance store owners became the first providers of CATV (Community Antenna Television) by placing antennae on top of their buildings and routing cable to local community centers and businesses. In Pennsylvania, Robert Tarlton started Panther Valley CATV to bring a signal from Philadelphia to Lansford. This was the genesis of the local cable company.

CableMuch of early cable programming served simply to carry the signal of the major networks (NBC, CBS, ABC) into the homes of small communities without access to a strong signal.

CableBasic Components of a Cable System:Headend: Source of programming entering the cable station from satellite and land antennae.Trunk: Carries the signal out of the station.Amplifier: Amplifies the signal to compensate for signal deterioration over distance.Feeder: Carries the signal to local vicinities.Drop: The cable the comes into your home.

CableBasic Components of a HFC (Hybrid Fiber Coaxial)Headend: Source of programming entering the cable station from satellite and land antennae.Fiber-Optic Lines: Carry signals that have more clarity and bandwidth than coaxial cable.Node: Signals are converted to analog for coaxial delivery to the homes terminal equipment.Feeder: Carries the signal to local vicinities.Drop: Cable that comes into your home.

SatelliteSatellite technology helped lift geographic barriers and became a key ingredient in cable televisions development.In 1972, the FCC encouraged cable networks to relay their signals via satellites by adopting an open sky policy. This action gave the green light for cable companies to enter the domestic communication satellite business so long as they had the technical expertise and financial support to do so.

SatelliteCharles F. Dolans transformed his struggling Lower Manhattan cable company into HBO the first premium channel. HBO began transmitting via satellite in 1975, inaugurating the age of the superstation.

SatelliteDomsats (Domestic Satellites) also provided another innovation for cable television the SUPERSTATION, a local TV station based in a major city but distributed nationwide on multiple cable systems. The same satellite carrying the HBO signal would start carrying other passengers (e.g. WTBS).

SatellitesThe greater range of programming provided by satellites lead to the practice of tiering where cable companies charge a variable rate depending upon the level of service.

The Business of Cable TelevisionThe mom and pop era of community cable stations has been replaced by a small number of cable corporations. Growth in the cable industry is now a result of two primary factors:Horizontal IntegrationVertical Integration

The Business of Cable TelevisionHorizontal Integration: Simply stated, horizontal integration occurs when two or more companies in the same line of business join forces.Vertical Integration: Having a hand in the affairs of production, distribution, and exhibition of media content is called vertical integration. It defines how media conglomerates have grasped key links in the chain, such as the production studios, program networks, and system operators.

TermsMicrowave: Radio signals used to carry audio and video over long distances, either to satellites or to relay towers.Cable Network: A closed-circuit channel offering television programming via satellite to local cable systems, for delivery to its subscribers.

TermsTransponder: The receiver/transmitter unit on a satellite that picks up signals on one channel and bounces them back to earth on another one.Superstation: A commercial broadcasting station whose signal is retransmitted by satellite and cable systems to a national audience of subscribers.

TermsPublic Access: Dedicated channels allowing residents to produce and televise programs over a community cable system.Multiple System Operators: Corporations that own and operate more than one cable system.Bundling: Packaging together several telecommunications services such as television, telephone, and the Internet for a monthly fee.

TermsFiber-Optic Lines: Strands of flexible glass inside a cable transmitting pulses that carry video and audio information for cable television.Coaxial Cable: transmission line for cable television, using a center wire of aluminum or copper surrounded by a shield.

TermsFranchise Fees: Share of cable revenues dedicated to a governmental authority in exchange for an exclusive contract.PEG (public, educational, governmental) Government term to describe dedicated-access channels on cable systems.Cable System: A wired network for distributing television programs on a subscription basis to homes in a single community.

TermsMust-carry: Federal rule requiring cable systems to carry local broadcasters on a basic tier of channels.