1. Cable and Satellite Industries

2. Lil Context Cable + Satellite= –Multi-Channel Television Industries 87-90% of U.S. TV households get programming. 60% of Americans households subscribe to cable. This means… –Most Americans PAY for service!!! 347 million global subscribers Industry employs about 300,000, $178B

3. History 1948, retransmitting broadcast signals in rural areas CATV –Community Antenna Television –Astoria, Oregon –Leroy E. "Ed" Parsons –$3, $125

4. History/Reg. First commercial services beginning in 1949 –Pay fee=get city network signals –CATV systems set up across the rural U.S. 1949, the FCC catches wind In the next decade some other parties catch wind and aren’t too fond of CATV? –Local Stations –NetworksNetworks

5. History/Reg. Cont’d In the 1960s, the Supreme Court upholds the FCC’s right to regulate CATV CATV as an industry slowly developed until the 1970s??? –New programming –New Services –Basic, Premium and… –SUPERSTATIONS –Deregulation???

7. Funding??? Advertising Installation Services Basic Cable subscriptions Premium Cable subscriptions

8. Regulation? Regulates mainly… –content Not? –Rate price –Cross ownership 1990s, gov. regulated…$20 for plans From 1993-98, the FCC resolved… –18,000 complaints –In 5,700 communities –Ordering $100 million in consumer refunds to 40 million cable subscribers

9. Regulation Cont’d From 1998-2003, cable rates soar 3x’s the inflation rate –Up 59% since 1998 So, what happened??? –1996 Telecommunications Act –Allows Cable providers to own ISPs and phone companies –Gov. does not have the right to keep cable rates in check

10. Markets Local/National –Audiences and advertisers Most lucrative market? –Basic cable, 55% of industry revenues –Premium/Pay, 11% of revenues –Other 34% Rentals, installation fees, modems, pay-per-view Phone and ISPs???

11. Competition???

12. Major Players Comcast –2002, bought AT&T Broadband Time Warner Charter Communications Cox Communications

13. 26.7M subscribers $22.25B in revenues Lobby against "family tier" and "a la carte" bills Hire family members of mayors, congressmen, senators, etc. Brian and Ralph Roberts own 1/3 stock

15. Resistance???

16. The Present Market In 2008 digital cable subscribers up 14% Satellite subscribers 6%. 2008, 85% of households subscribed to either cable or satellite. Top 20 multiple system operators (MSOs) serve??? – 90 percent of cable subscribers in U.S. –This indicates…???