Cable and satellite TV revolutionized television, offering more channels and programming options. This shift fragmented audiences, challenged broadcast networks, and changed how we consume media. It paved the way for niche content and targeted advertising.

The technology behind cable and satellite TV expanded television's reach and capabilities. Cable's physical infrastructure enabled two-way interactivity, while satellites could cover vast areas. These advancements set the stage for today's diverse media landscape and streaming services.

Cable and satellite TV industries

Development and growth of cable TV

• Cable television began in the late 1940s as a way to improve reception in remote and mountainous areas
  • Used antennas to receive broadcast signals and transmit them via coaxial cable to subscribers
• In the 1970s, cable TV expanded beyond retransmission of broadcast signals
  • Offered original programming and specialty channels
  • Enabled by the launch of domestic communications satellites
  • Growth of cable networks (HBO, ESPN)
• By the early 2000s, cable and satellite TV surpassed broadcast TV
  • Over 85% of U.S. homes subscribed to a multichannel video programming distributor (MVPD)
  • Higher household penetration and revenue compared to broadcast TV

Expansion of satellite TV in the 1990s

• Satellite television emerged with the launch of high-powered direct broadcast satellites (DBS)
• Digital compression technology allowed small dish antennas to receive hundreds of channels directly to homes
• The Telecommunications Act of 1996 reduced regulation
  • Allowed cable companies and phone companies to enter each other's markets
  • Spurred industry consolidation
  • Rise of cable giants (Comcast, Time Warner Cable)

Cable vs Satellite Distribution

Technical aspects of cable TV distribution

• Cable TV systems transmit signals from a headend facility to homes
  • Uses a network of fiber optic and coaxial cables
  • Signal is split and amplified along the way to maintain quality
• Requires a physical connection to the home
  • Limited by the reach of the cable infrastructure
• Offers higher bandwidth and two-way interactivity
  • Enables services like video-on-demand and internet access
• Generally more reliable but can be affected by physical damage to the cable infrastructure

Technical aspects of satellite TV distribution

• Satellite TV transmits signals from a broadcast center to orbiting satellites
  • Satellites then beam the signals directly to small dish antennas on homes
• Can cover large geographic areas
  • Does not require ground-based infrastructure to the home
• Mostly a one-way broadcast medium with limited interactivity
• More susceptible to signal disruption from weather conditions (heavy rain, snow)

Impact on Broadcast Television

Fragmentation of television audience

• Cable and satellite TV offered a wide variety of channels and programming options
  • Reduced the market share and advertising revenue of broadcast networks
• Allowed for more targeted advertising based on specific demographics and viewing habits
  • Differed from the mass-market approach of broadcast TV

Changes in television journalism and content

• The rise of cable news networks (CNN, Fox News) challenged the dominance of broadcast network news
  • Changed the style and tone of television journalism
• The success of cable networks (HBO, Showtime) in producing high-quality original programming
  • Raised the bar for television content
  • Put pressure on broadcast networks to innovate

Increased competition and consolidation

• The proliferation of cable and satellite channels led to increased competition for talent and resources
  • Drove up costs in the television industry
  • Led to consolidation among media companies

Content Diversity and Niche Programming

Targeted channels and specialized content

• Cable and satellite TV allowed for the creation of channels targeted at specific demographics, interests, and lifestyles
  • Examples: MTV (music), ESPN (sports), Nickelodeon (children), The History Channel (documentaries)
• The business model of cable and satellite TV made it economically viable to produce content for smaller and more specialized audiences
  • Based on subscriber fees and targeted advertising

Pushing boundaries and expanding opportunities

• Cable networks (HBO, Showtime, FX) pushed the boundaries of television content
  • Produced edgier, more explicit programming that broadcast networks could not air
  • Due to regulatory and advertiser constraints
• The expanded channel capacity created opportunities for independent producers and minority voices to reach audiences
  • Although the industry still faced challenges with diversity and representation

Paving the way for streaming services

• The success of niche programming on cable and satellite TV set the stage for the rise of streaming services
  • Examples: Netflix, Hulu
• Streaming services further expanded the range and diversity of content available to viewers