101 ch12


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101 ch12

  1. 1. Cable, satellite, and Internet television Chapter 12
  2. 2. A brief history • Cable TV began in the early 1950s as a workaround for people who had trouble receiving over the air signals • An antennae would be placed where a signal could be received, cables off that antennae would feed households in areas of poor reception • Over time, stations were imported for variety versus necessity, which lead to over the air broadcasters to get nervous
  3. 3. A brief history • In 1972 the FCC limited cable's growth • From 1962 - present, satellites were used to transmit programs - satellite delivery mainstreamed in 1976 when HBO transmitted the Ali v Frazier fight • Cable advertising revenues exceed $27B • DBS: Dish Network, DirecTV
  4. 4. Legal issues • 1984: Congress deregulated the rates systems could charge consumers • After complaints from subscribers, in 1992 Congress passed the Cable Television Consumer Protection and Competition Act • Caused a 17% reduction in rates, and mandated broadcasters choose between must carry (the local cable system had to carry the station's signal) and retransmission consent (the local station had the right to negotiate compensation for carriage of its signal)
  5. 5. Legal issues • Telecommunications Act of 1996: gave telephone companies the right to enter the cable business (and vice versa), and both companies are allowed to own competing businesses in the same community • Allowed cable companies to again set their own rates
  6. 6. A brief history • The late 90s saw a different way to distribute TV signals - Internet TV or Webcasting • This was accomplished by streaming the video, using a process called buffering • Video on the web grew slowly until high speed broadband was available to consumers • Podcast: video or audio program that can be subscribed to, and downloaded to a portable device
  7. 7. Cable, Satellite and Internet TV in the digital age • All use digital techniques for transmission • Digital signals make HDTV, DVR, interactive program guides, ondemand video possible • Mobile media: mainstreaming of smartphones with data packages, 3G (4G), WiFi networks make video streaming easy • User generated content: YouTube • Social media: cable stations make extensive use of social networks. Cable news networks on Twitter.
  8. 8. Defining features of cable, satellite and Internet TV • Consumers need an extra piece of equipment to receive programming • Consumers have to pay extra for these services • These services carry many channels that appeal to niche audiences
  9. 9. Structure of Cable TV • Three main components of a cable system: • Head end: antenna and related equipment that receive signals from distant TV stations, and process these signals to be sent to subscribers' homes • Distribution system: consists of the actual cables that deliver the signals to subscribers • House drop: the section of cable that connects the feeder cable to the subscriber's television set
  10. 10. Local cable systems The are six basic sources of programming for a local station: 1.Local origination: local news, local govt channel 2.Local broadcast stations: some cable companies carry other local signals from nearby cities
  11. 11. Local cable systems 3. Superstations: local stations that are carried nationwide (TBS was the original superstation as WTBS Atlanta before changing over to a cable network in 1998) 4. Special cable networks: services distributed by satellite to cable systems. Examples: MTV, USA 5. Pay services: premium channels, HBO, Showtime 6. Pay per view: recent releases, special events pay per showing
  12. 12. Local cable systems Two basic sources of income: 1.Subscription fees from consumers 2.Local advertising • Cable systems also have to pay for their programming supply
  13. 13. National operators At the national level, cable networks draw upon three major sources for their programming: 1.Original production 2.Movies 3.Syndicated programs
  14. 14. National operators Three main revenue sources for cable networks: 1.Advertising 2.Carriage fees: charged to local operators for use of programming (example: ESPN $2.90 per subscriber, CNN $0.47) 3.Subscription fees
  15. 15. PPV & VOD • Pay Per View: makes most money from sporting events, movies, concerts and adult content • Video-on-demand: programming is stored on a server, subscribers use an interface to select programming, able to fast forward, pause, rewind
  16. 16. Structure of satellite TV Consists of five elements: 1. Content providers: ESPN, Food Network, local broadcast stations 2. Broadcast center: transmits programming 3. Geosynchronous communication satellite: receives programs and sends them back to the small consumer dishes 4. Small receiving dish: picks up the signal and transmits it to… 5. Satellite receiver: able to be viewed on a TV set
  17. 17. Satellite programming & financing • The same programming carried by cable is (mostly) available on satellite • Unlike cable, satellite networks are national in focus, no local origination of programs (YNN, for example, community access) • Biggest source of revenue is subscriber fees, biggest expense is related to hardware/equipment • They also pay carriage fees
  18. 18. Ownership of cable & satellite • Cable: Comcast, Time Warner, Cox communications, Charter Communications, Cablevision • Satellite: DirecTV (News Corporation) and Dish Network (EchoStar)
  19. 19. Internet video • Anyone can start an internet channel • Professionally produced content & amateur content • Sites like Hulu, Ustream, YouTube, Amazon, Netflix, Vimeo • Microcasting: the opposite of BROADcasting; serves a small specialized audience
  20. 20. Feedback • Like broadcast TV, Nielsen measures Cable, Internet & Satellite TV • Audience: 85% of American households get their TV from either cable or satellite services; subscribers are younger, more affluent and have more children than non-subscribers • Cable/satellite networks are more specialized than broadcast networks. • 70% of all TV viewing is still in front of a traditional TV