The Cable Industry: A Short History Through Three Generations
By CableCenter
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About this ebook
“The Cable Industry – A Short History Through Three Generations” by Larry Satkowiak concisely explains how the cable industry evolved from its modest CATV beginnings in 1948 to its current status as a telecommunications powerhouse. This unique three-generation introduction to the cable industry surveys major developments across this multi-faceted business and includes significant entrepreneurs, innovative technology advancements and landmark government regulations.
Satkowiak weaves a fascinating story of the cable industry which reflects the compelling impact of the free-enterprise system in the United States. In its early days, the broadcasters dominated the television system and discouraged additional competition to their empire. Consequently, the emerging cable industry struggled to survive against the network giants and, at times, its future looked rather bleak. The advent of cable programming changed everything in the 1970s, and by the 1990s, cable programmers negotiated with the satellite companies to carry their content, which made television highly competitive. In the twenty-first century we have seen an unprecedented explosion of technological ingenuity, and the cable industry is one of the pivotal contributors towards this exponential growth.
Will there be a fourth generation of cable or is there a nascent telecommunications industry about to unfold? Satkowiak expertly speculates what the current trends portend for this dynamic industry.
CableCenter
Established in 1985, The Cable Center plays an integral role in the cable industry. The Center's resources and information document cable's rich heritage. Programs at The Cable Center support and fuel the ongoing impact of the industry's historic innovations and influence. The Center uniquely tells the riveting story of the cable industry and highlights the significant contributions made to technology, society and culture. The Cable Center is headquartered in Denver, Colo., but our presence extends around the globe wherever cable professionals work and wherever customers live. The Center's industry-wide mission and scope of service serves everyone involved in cable's sphere - operators, programmers, vendors, suppliers, professionals, nonprofit industry organizations, academics, the press and the public. Our unique historical resources are a living and enduring testament to the entrepreneurial spirit of cable's founders and also to the innovative culture the industry inspires on a daily basis. The Center's programs help current professionals excel in their roles, provide accurate information to the press, educate academics about industry accomplishments and keep the story alive for future generations. Our seminal customer care programs provide a dynamic contribution to the industry's collective efforts to improve customer satisfaction. We welcome you to our website and encourage you to browse through each section. Here, you will learn more about our mission, our board of directors and staff, how to support The Cable Center and even how to rent our state-of-the-art facility.
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Book preview
The Cable Industry - CableCenter
THE
CABLE
INDUSTRY
A short history through three generations
Larry Satkowiak
The Cable Center
Copyright © 2015 by The Cable Center. All rights reserved.
Published by The Cable Center, Denver, Colorado
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. Requests to the publisher for permission should be addressed to: Librarian, The Cable Center, 2000 Buchtel Blvd., Denver, CO 80210, (720) 502-7531, www.cablecenter.org.
Limit of Liability/ Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
For general information on our other products and services, or technical support, please contact Librarian, The Cable Center, 2000 Buchtel Blvd., Denver, CO 80210, (720) 502-7531, www.cablecenter.org. The Cable Center also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.
ISBN: 978-0-692-41193-3
Printed in the United States of America
"We hear a lot today about innovation—new business models, new technology, new ways to communicate. But, the development of the cable industry set the tone—and the spirit—for today’s innovation. In Larry Satkowiak’s book, The Cable Industry, he tells the fascinating story of the development and contributions of the cable industry and its founders. Cable pioneers overcame a host of challenges, including technology, a new business model, regulation, and tough competition. In doing so, they forever changed how we are entertained, informed, and communicate. This book is essential reading for anyone who wants to understand the forming and forces behind the cable industry."
-Charles H. Patti, PhD
James M. Cox Professor of Customer Experience Management
At long last, someone has lassoed the often verbal, mercurial and largely anecdotal history of this wild–and wildly influential–industry and corralled it onto the written page. From this point forward, this will become the definitive source of how this incredible industry came to be one of the most influential in history!
- Ann Carlsen
Founder and CEO, Carlsen Resources, Inc.
"Larry Satkowiak’s book The Cable Industry does an excellent job of telling the story of the history of the development of the cable industry in the U.S. Satkowiak’s insight regarding the technological, regulatory, and competitive problems that the industry faced and overcame underscores the ‘can do’ attitude and entrepreneurial spirit of the men and women who have built this industry. This book captures the idea of the cable industry as an embodiment of the ‘American dream’. Satkowiak’s book is clearly and succinctly written and his organization of the history around the three phases of development of the industry is a very useful way to think about the evolution of the cable business. Reading this book will be a worthwhile investment for anyone who wants to learn about the development of the U.S. cable industry."
-Ronald J. Rizzuto, PhD
Professor of Finance, University of Denver
Contents
Foreword
Preface
The Three Generations
The Age of the Entrepreneurial Pioneers 1948-1973
The Age of Satellite and Cable Programming 1973-1995
The Age of Innovation 1995-Present
Acknowledgments
Recommendations for Further Study
Endnotes
Reference List
About the Author
FOREWORD
The Cable Center celebrates the thirtieth anniversary of its founding in 2015. To mark the occasion, Larry Satkowiak and The Cable Center staff prepared this short history of the cable industry. The Cable Center is in a unique position to present this information, because it holds the finest collection of material related to cable’s growth and development anywhere. Although The Cable Center makes significant information available to the public through its website, www.cablecenter.org, they have received numerous requests for a short history. This book fulfills that need.
The cable industry had very humble beginnings, providing television service to people in small, rural communities who could not receive signals from distant broadcast stations. As the industry grew, it disrupted the existing television marketplace with new and diverse programming that eventually challenged the major broadcast networks. The industry invested in video on demand and interactive services which allowed consumers to view content on mobile devices. Further innovative investments transformed the industry into the leading provider of high-speed Internet connections. In addition, the cable industry challenged the landline phone monopoly, bringing choice and value to the U.S. consumer. The cable industry is honored to invest in America and proud to say that the cable industry was built without government support.
This book divides the history into three generations, highlighting the industry’s culture of innovation and entrepreneurship. This book shows how the cable industry faced challenges and overcame the difficult obstacles placed in its path. The industry has had its challenges, but has persevered to become a shining example of the free-enterprise system. Today, the modern cable industry faces new competition and great opportunities. It is important to understand cable’s history in order to follow the headlines that we read every day. This book will provide a basic understanding of the cable industry and will prove helpful to anyone wanting a foundational work.
The Cable Center is an educational nonprofit that tells the story of the cable industry. The Cable Center started as a project of the Communications Department at Penn State University; it was formerly known as the National Cable Television Center and Museum. In 2001, along with a name change, it opened a state-of-the-art facility on the University of Denver campus. It has grown since that time to become the leading resource of historical information about the cable industry. The Cable Center continues to add to its collection and welcomes researchers to explore its archival material.
On behalf of The Center’s board of directors, we hope you will find this short introduction informative and entertaining.
Jerry Kent
Chairman and CEO, Suddenlink Communications
Chair of The Cable Center’s Board of Directors
Co-Founder of Charter Communications
PREFACE
During the very early days of television, a small group of upstart business people struggled to bring television to smaller communities across the United States. They built their future on the newest technology in an atmosphere similar to the high-tech industry we know today. Many received loans from their local banks, some mortgaged their homes; all took the risk that their investments would yield a decent living for their families. They found obstacles along the way, problems that needed solving, and long days of hard work. The nascent cable industry never guaranteed that a person entering the business would find success, but for a person with vision who worked hard, the possibilities seemed limitless.
The story of cable is the story of the free-enterprise system in the United States. In its early days, the broadcasters dominated a television system that discouraged additional competition. The emerging cable industry struggled to survive against those giants and, at times, its future looked downright gloomy. The advent of cable programming changed everything in