Modern TelevisionChapter 4

Introduction

Growth of Cable TV Programming Service

• 1940 – 1980 – broadcast TV – mature industry• End 1970 – cable TV fledging the industry. Started already in 1940

• Time Inc. – started Home Box Office (HBO) – 1975 – via satellite• Viacom – pay cable service – Showtime• Then comes :

• The Movie Channel• Bravo• Entertainment Channel• Disney Channel• Playboy Channel

• Narrowcast Concept – specific niche audience • ESPN • Black Entertainment TV

• Local programming in cable TV – allocate one channel to local programs.• leased access channels – business & local individuals – buy time on cable – present

their message. • Other means of cable TV – interactive (Qube) – small box with response button - home security – update every 10sec of what in happening.

Cable TV’s Gold Rush

• Subscribing – double – 1980 to 1985 - money collected – skyrocketed

• Gold Rush• Franchising

• to company willing to lay cable• awarded by local authorities

• Development of local programming• Community Group – cable company set a certain number of channels• PEG ( Public, Education & Government) channel• Cheaper rates , shorter time to lay cable, more channel – as franchising became more

intense. • However they soon realized that it not recover investment for about a decade. • take over by Multiple System Operator (MSO) – consolidation by larger companies

• Advertising – placing of ads increased • Unions – to protect the workers • Equipment manufacturers – biggest winner in cable TV Gold Rush

The Beginnings of Satellite TV

• Satellite TV – competitor to cable TV - slow start• Satellite – first launched – 1962 – it was a very complicated technology

- then it became user friendly• 1979 – FCC – no need to have a license for a TV Receive Only ( TVRO) satellite dish• From TVRO – DBS – programming service that goes directly from satellite to home. • DBS however started as a failure• services were not on track• technical and financial problem• pulling out of business.

• Backyard Satellite • rural areas – TV reception was poor • bought large dishes used by cable TV• cost USD 3000 – can receive all the tv programming for free. • causing a stir – but only minority issue – cable TV did not want to pursue the issue

Home Video

• Video tape recorders for tv. • First VCR ( Video Cassette Recorder) – Sony Betamax – 1975

- analog – recording up to 1 hour• 1976- Matshushita –Video Home System ( VHS)

- via Japan Victor Company ( JVC) - recording up to 2 hours – can record movie from tv. • Starting of video stores • copyright sues• actually generated more profit• theatrical release generates a buzz , home video generates the profit

• From VHS to analog videodiscs – laser disc

Broadcast & Cable Issues

Must – carry • cable system to carry all local TV stations• problem – cable owners need more profitable programs • satellite programs in their channel

Retransmission• cable tv pay for carrying their signal • have option of not carrying the station if refuse to pay • some solution – channel space – could air additional program

Copyright • on the important distant signal – the adjusting of fees

Deregulation • government reduce rules & regulations for many types of business

Reregulation• interfere back

Satellite TV Revived

• started back in 1990s• Rupert Murdoch – his company – News Corp.

• formed an alliance with NBC, CableVision System & Hughes Communication

• a system called – Sky Cable• dissolve quickly• clashing ideas and egos

• Hughes – joined forces with USSB ( owner Stanley Hubbard )• one of original DBS • develop high powered satellite – Direct TV

• Direct TV Success• high powered satellite• small and reliable 18 inch dish – easy to mount• high quality picture and sound• people were angry with cable TV

• raising rates• slow to fix• technical glitches

• Also killing the Backyard Satellite – having signal scrambling

Satellite TV Revived

• Rupert Murdoch – form an alliance with MCI to establish a satellite TV service. – too expensive

• Form another alliance with Charlie Ergen – EchoStar – egos & financial destroy relationship.

• Charlie Ergen – established his own network – Dish Network

Early Drawback of Satellite TV

• lack permission to deliver local stations to subscribers• interactive

Telecommunication Act 1996• new law – not replacing the old Communication Act 1934• V-Chip• Deregulation• Intermingling

Telephone Company Entry

• AT & T• Started as POTS – Plain Old Telephone Service• then PANS – Pretty Amazing New Service• hold button• answering machine• redial• speed dial• call waiting• etc

• Expanding business – telephone , internet , television

Digital Videodiscs

• Introduced in 1997• hold 4.7 gigabytes – better quality compared to analog tape• as it progressed – dubbed as Digital Versatile Disc – holds music , text & other data• 2 competing format

• Sony & Philips • Toshiba & Time Warner

• Hollywood reaction – early years – refused to put material on discs• copyright – discs could easily be copied

• DVD Growth – consumer accept this new format much better • by 2002 – some companies selling more DVD than VHS tapes• Netflix – began mail-based DVD

• more studio started enhancing extra material in the DVD • behind the scenes• director’s interview• other background information

• TV producer – put entire season on DVD• Newest saga of DVD – High Definition DVD

• Toshiba ( HD DVD)• Sony ( Blu-ray) – major studio endorsed this format

• 6 times the capacity of HD DVD

Enter TiVo

• TiVo is a brand name• is has become a generic word – to describe Digital Video Recorders ( DVRs)• using high capacity microchips to store many hours of video on solid-state hard drive• convert signal into digital form• can watch anytime we want• problem?• technology – easy to duplicate • cable & satellite – started to have their own DVR in their package

• TiVo could not make profit • in 2008 – won a patent lawsuit against Dish • received 74 million – helps protect its technology

Programming Changes

• content & structure changes • addition of new genre – reality TV

• success ? – gained large audience - inexpensive to produce

• Survivor – a success • The Apprentice

• 2 other new forms of programming – home shopping - informercials – talk shows - information programs ( weight control programs, bald

treatments )• Pay-per-View ( PPV) – started – subscribers – make phone calls

• now – interactive – push of a button• delivered to you

• Near-Video-On-Demand ( NVOD) = Astro First • Video-On-Demand ( VOD) – watch when they want

• play, stop, rewind, etc• via server

Digital TV & HDTV

• 2009 – U.S switched from analog TV to Digital Television ( DTV)• DTV – uses technology similar to computers

- can be standard or Hi-Def• HDTV – originally develop by the Japanese 1970 as an analog system • Impact of HD @ Digital TV• consumers with analog set need to buy new set or a conversion set • must-carry issue – old frequencies tend to carry only 1 HDTV channel

- as technology improved – they could use the frequencies to broadcast 1 or 2 SD signal – secondary channel

• FCC ruled : • cable system must carry only the primary channel – Hi-Def Channel • carry them for 3 years • auction the analog frequencies to mostly cell phone companies.

Issues and the Future

• Number of Services • increasing • need to pay • compare old days – watching TV is free

• Competition• DVD vs flash memory chips • Satellite TV vs Phone company – interactive application • TiVo may fold if it can’t make any profit

• Consolidation – merging

• Government Actions • “ a la carte service “ – instead of package • issue of sex and violence • consumers are not utilizing the V-Chip

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