History Of Cable Television

History of Cable Television

The 1940s and 1950s
Cable television originated in the United States almost simultaneously in Arkansas, Oregon and Pennsylvania in 1948 to enhance poor reception of over-the-air television signals in mountainous or geographically remote areas. "Community antennas" were erected on mountain tops or other high points, and homes were connected to the antenna towers toreceive the broadcast signals.
By 1952, 70 "cable" systems served 14,000 subscribers nationwide.
In the late 1950s, cable operators began to take advantage of their ability to pick up broadcast signals from hundreds of miles away. Access to these "distant signals" began to change the focus of cable’s role from one of transmitting local broadcast signals to one of providing new programmingchoices.
The 1960s
By 1962, almost 800 cable systems serving 850,000 subscribers were in business. Well-known corporate names like Westinghouse, TelePrompTer and Cox began investing in the business, complementing the efforts of early entrepreneurs like Bill Daniels, Martin Malarkey and Jack Kent Cooke.
The growth of cable through the importation of distant signals was viewed as competition by localtelevision stations. Responding to broadcast industry concerns, the Federal Communications Commission (FCC) expanded its jurisdiction and placed restrictions on the ability of cable systems to import distant television signals. As a result of these restrictions, there was a "freeze" effect on the development of cable systems in major markets, lasting into the early '70s (see below).
The 1970s
Inthe early 1970s, the FCC continued its restrictive policies by enacting regulations that limited the ability of cable operators to offer movies, sporting events, and syndicated programming.
The freeze on cable’s development lasted until 1972, when a policy of gradual cable deregulation led to, among other things, modified restrictions on the importation of distant signals. The clamp on growth hadadverse financial effects, especially on access to capital. Money for cable growth and expansion all but dried up for several years.
However, concerted industry efforts at the federal, state, and local levels resulted in the continued lessening of restrictions on cable throughout the decade. These changes, coupled with cable’s pioneering of satellite communications technology, led to apronounced growth of services to consumers and a substantial increase in cable subscribers.
In 1972, Charles Dolan and Gerald Levin of Sterling Manhattan Cable launched the nation’s first pay-TV network, Home Box Office (HBO). This venture led to the creation of a national satellite distribution system that used a newly approved domestic satellite transmission. Satellites changed the businessdramatically, paving the way for the explosive growth of program networks.
The second service to use the satellite was a local television station in Atlanta that broadcast primarily sports and classic movies. The station, owned by R.E. "Ted" Turner, was distributed by satellite to cable systems nationwide, and soon became known as the first "superstation," WTBS.
By the end of the decade, growth had resumed,and nearly 16 million households were cable subscribers.
The 1980s
The 1984 Cable Act established a more favorable regulatory framework for the industry, stimulating investment in cable plant and programming on an unprecedented level.
Deregulation provided by the 1984 Act had a strong positive effect on the rapid growth of cable services. From 1984 through 1992, the industry spent more than$15 billion on the wiring of America, and billions more on program development. This was the largest private construction project since World War II.
Satellite delivery, combined with the federal government's relaxation of cable’s restrictive regulatory structure, allowed the cable industry to become a major force in providing high quality video entertainment and information to consumers. By the...