American Business History

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Cable television

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American Business History

Definition

Cable television is a system of delivering television programming to consumers via coaxial or fiber-optic cables, rather than through traditional broadcast methods. This technology enabled the growth of numerous channels, catering to diverse interests and demographics, while also leading to the rise of influential media and entertainment moguls who shaped the industry.

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5 Must Know Facts For Your Next Test

  1. Cable television began to gain popularity in the 1940s as a means to improve reception in rural areas, but it exploded in growth during the 1980s and 1990s.
  2. The introduction of premium channels like HBO and Showtime changed the landscape of cable television, offering commercial-free viewing and original programming that attracted large audiences.
  3. By the late 1990s, cable television had transformed into a multi-billion dollar industry, with many companies consolidating through mergers and acquisitions to enhance their market power.
  4. The rise of cable television led to increased competition for advertising revenue among networks, which in turn fueled innovative programming strategies and the creation of niche channels targeting specific audiences.
  5. As streaming services began to emerge in the 2000s, cable television faced challenges that prompted many traditional cable providers to adapt their business models to include on-demand content and digital offerings.

Review Questions

  • How did cable television contribute to the rise of media and entertainment moguls in the industry?
    • Cable television provided a platform for media and entertainment moguls to launch numerous channels targeting various demographics and interests. This allowed individuals like Ted Turner, founder of CNN, and Rupert Murdoch, founder of Fox, to shape content offerings and leverage advertising revenue. As cable networks proliferated, these moguls expanded their influence over popular culture and entertainment by creating brands that catered to niche audiences.
  • What impact did the introduction of premium channels like HBO have on traditional broadcasting and advertising strategies?
    • The introduction of premium channels like HBO disrupted traditional broadcasting by offering commercial-free programming and high-quality original content. This shift forced broadcast networks to reconsider their advertising strategies as viewers began gravitating towards subscription-based models that provided unique viewing experiences. The competition encouraged innovation in both programming and advertising techniques, leading networks to produce more engaging content that could attract larger audiences despite the allure of ad-free options.
  • Evaluate how the evolution of cable television has influenced consumer behavior and shaped content creation in today's media landscape.
    • The evolution of cable television significantly influenced consumer behavior by increasing expectations for diverse programming options and high-quality content. Viewers became accustomed to a wide range of choices available at their fingertips, leading to demands for tailored content across multiple platforms. This shift has shaped content creation today, as networks and streaming services prioritize audience engagement through binge-worthy series, real-time interaction on social media, and adaptive storytelling that caters to shifting viewer preferences.
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