History of Cable, Satellite and Internet TV
Cable, Satellite and Internet TV in the Digital Age
Defining Features of Cable, Satellite and Internet TV
Organization
Ownership
Internet Television
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Cable, Satellite, and Internet TelevisionChapter 11© 2009, The McGraw-Hill Companies, Inc. All rights reserved.1CHAPTER OUTLINEHistory of Cable, Satellite and Internet TVCable, Satellite and Internet TV in the Digital AgeDefining Features of Cable, Satellite and Internet TVOrganizationOwnershipInternet Television 2HISTORY OF CABLE, SATELLITE AND INTERNET TV (1 of 2)Cable: 1950s; brought TV to remote areas. Satellite TV transmissions gave people more reasons to subscribe to cableMSOs: Multiple Systems Operators; large cable systems dominate industryDBS: Direct Broadcast Satellites1992 Cable Television Consumer Protection ActMust carry vs. retransmission consent3HISTORY OF CABLE, SATELLITE AND INTERNET TV (2 of 2)Telecommunications Act of 1996 Telephone companies could provide cable TVCable could provide telephone serviceVOIP: Voice over Internet protocolNew cable networks find it hard to gain accessCable TV audiences are fragmentingInternet TV (webcasting); late 1990sBuffering & broadband have helpedPodcasts4CABLE, SATELLITE AND INTERNET TV IN THE DIGITAL AGESatellite and cable systems use digital technologies to supportVideo on demand, interactive program guides, high-definition TV, digital video recordersCompression of signals, increasing channel capacityCable systems can also provide telephone and Internet serviceBundling multiple servicesEasier for telephone or cable systems than satellite systems5Mobile MediaCable and satellite content can be sent toCell phones, PDAs, laptop computersUser-generated content on cell phonesMobile video-sharing web sites 6User-Generated ContentCable and satellite networks increasingly turning to user-generated videoCNN I-ReportThe Internet is biggest place for user-generated contentYouTubeUsed by politicians, advertisers, aspiring entertainers7DEFINING FEATURES OF CABLE, SATELLITE AND INTERNET TVRequires extra equipmentExtra fees for serviceSpecialized channels, appealing to highly differentiated audiencesEven when mass appeal content (TV shows, movies) is available on the Internet, the audience is not mass8ORGANIZATIONWe will first consider the organization of the cable and satellite TV industries, then turn to Internet video9Structure: Cable TVHead endDistribution systemTrunkHouse dropOne-way or two-way10Programming and Financing: Cable TV (1 of 2)Local operators Program sources Local origination, local broadcast TV stations, superstations, special cable networks, pay services, pay-per-view channels.Income sources Subscription fees, local advertisingExpensesHardware (installing/maintaining system), content11Programming and Financing: Cable TV (2 of 2)National operatorsProgram sourcesOriginal productions, movies, syndicated programsIncome sourcesSubscription fees, carriage fees, advertising12Pay-Per-View (PPV)Sporting events, movies, concerts, adult contentThough the potential for big money remains, PPV has fallen on hard times due to Video on Demand (VOD)Digital channels13Video-on-Demand (VOD)Users search for content stored on cable/satellite company’s serverSelect desired content, and it becomes available, usually for a feeVOD has been slow to catch onRelative lack of content; complicated user interfacesVOD use is up, but VOD is lower priority for cable/satellite companiesYouTube content creates more “buzz”; more competitors are appearing14Structure: Satellite TVContent providersBroadcast centersGeosynchronous satellitesSignals are encryptedSmall satellite receiving dishSatellite receiver15Programming and Financing: Satellite TVProgramming sources carried by major cable companies are also distributed by satelliteDifference: satellite networks are national, with no local generation of programsRevenue sourcesSubscription fees, extra charges for DVRs, HDTV, etc. Local advertising not significant revenue.ExpensesHardware, contentChallengesCompeting with cable’s ability to bundle voice, video, high-speed Internet access16OWNERSHIPOwnership trend is toward consolidationCableComcast & Time-Warner SatelliteDirecTV and Dish Network17INTERNET TELEVISIONStarting an Internet channel requires onlyCamera, computer, software, websiteConvergence between TV set and computer is well under way18Structure: Sources and ContentSources of web videoAmateursProfessionalsContentOriginalRepurposed19MicrocastingHow broad of an audience is being sought?BroadcastingNarrowcastingMicrocastingAs it evolves, will the Internet be used more for broadcast or microcast applications?20FeedbackCable/satellite networksNielsen Media ResearchSame techniques as with broadcast TVInternet videoComScore Media MatrixNielsen/NetRatings VideoCensus 21Audience 85% of US households subscribe to cable or satellite providersSubscribers tend to be younger, more affluent, and have more children.Demographic makeup of cable/satellite networks varies, due to the specialized content25% of Internet users watch online videos at least once a weekPeople who share videos tend to be male, and young22