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UMass Amherst COMM 122 - Cable

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COMM 122 1st Edition Lecture 22Outline of Last Lecture I. NewsII. Subscribers III. The Main Broadcast NetworksIV. Two scenariosV. Concentration of ownershipVI. TCIVII. MSOVIII. Networks Merging IX. Cable Act of 1984Outline of Current Lecture I. NewsII. Basic cable vs. Premium channelsIII. ChurnIV. HBOV. Cable channelsVI. TimelineCurrent LectureNews: - 13 million people downloaded Game of Thrones illegally, 8 million watched it live - 3 of the top 15 Cable shows: were a syndicated re-run of the show (NCIS)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.After the first 3 years after the 1996 Deregulation, it went up 45% - Since 1984: rates have gone up 284%-- way above inflation- Now: cable rates going up about 6%/year—projected= $200/month by 2020 Basic cable from 1975-2010: rates of basic cable went up so dramatically- Increases at a steady rate- 1992: Reregulation: caused dip o Every time there is deregulation, cable rates go up- 2012: Cable industry making billion of dollars Premium channels from 1975-2010: prices stayed fairly stableCable systems have one problem that won’t go away (turnover—lose 2-3 percentage of customers every month “churn”)—they both lose and gain people - Turn is not being off set by new subscribers because they are cutting the chord- Churn is:o Expensiveo Competition from satellite, internet, DVD, Hulu, Netflixo Assuming everything is “free”o Redundancy/ poor quality of movies on premium channels Shift from traditional cable to the phone services (AT&T and Verizon)Negative reviews of original cable content (low quality) HBO: produces much less than the broadcast networks—they can spend more time and money on each program (market better) - 1972: 300 homes, Wilkes-Barre, PA- First original show: “Pennsylvania Polka Festical”- No advertisers that they have to please (don’t have to worry about scaring them away)—only have to worry about how many people are paying the monthly fee, they don’t care a lot about ratings o Have more creative freedom1996: 162 cable netwroks2002: 287 cable channels 2015: 900+ cable channels - Many are subsidiaries, a lot of genres and diversity- Smaller audiences—only sizable viewers in the top 10 shows VCR was the fastest growing new technology- Went from 0-50% in 5 years Telephone: - Half the people had the telephone after 75 years DVR: - Has been around for 50 years and it isn’t even at half yet Timeline:- 1980’s: Videotex, Teletext o TV would air game scores instantly instead of having to wait foe the newspaper the next week, never really did anything because people didn’t care that much since they would have to pay more for it - 1990s: ITV (supposed to be hot, fizzled, no advertiser interest, Internet came along)- 2000s: ITV coming back—opened up all kinds of interactive abilities (digital) o Television is a lean back activityo Computer is a lean forward activity (engaged and interacting with it) Each ad is addressed to people individually based on what you watch, buy, and do  Google makes a lot of money from ads because they see what we do to them so ads can be related to each individual user - Cable systems were using an incompatible with others- 2007s: Interactive cross-cable system on Bravo (Project Runway)—interactive ads— first step towards standardizing o CANOW VENTURES: promotes interactive ads (yes/no/exit)—cost more ($150 million: Comcast, Time Warner, Cox, Charter, Cablevision) o Illusion of social benefits and progress  Really only about buying stuff—we can click on whatever we want and buy it or see more information—advertisers can see what we click on in our history so they see what we are interested in - Took so long to develop because it took so long for people to buy digital sets (doesn’t work without the digital sets) o Apple’s Next Big Thing: iTV: (don’t know anything about it yet) Institutions/ Regulations and Technology:- 2002 ruling: after 2005, all TV sets MUST have a digital tuner (manufacturers resisted—due to price—wanted to leave it up to consumers - Market worked too slowly to reach 85%... 2006: Congress sets transition to February 2009 by vote of 216 to 214Numerous issues/ controversies delayed DTV: new delivery systems - Digital must-carry for cable- Copyright protection - DTV standard (8-VSB or CODFM?)- Cable hardware connections to DTV sets- Give-back of analogue spectrum space - Public interest requirements- Actual DTV conversion deadline- Subsidies for converter boxes - Educating public about


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