Cable Television in The United States - Cable Television Fees and Programming Lineups

Cable Television Fees and Programming Lineups

Cable TV systems impose a monthly fee depending on the number and perceived quality of the channels offered. Cable TV subscribers are offered various packages of channels one can subscribe to. The cost of each package depends on the type of channels offered (basic vs. premium) and the quantity. These fees cover the fees paid to individual cable channels for the right to carry their programming, as well as the cost of operating and maintaining the cable TV system so that their signals can reach subscribers' homes. Additional cable television franchise fees and taxes are often tacked on by local, state, and federal governments.

Most cable systems divide their channel lineups ("tiers") into three or four basic channel packages. A must-carry rule requires all cable TV systems to carry all full-power local commercial broadcasting stations in the designated television market on their lineups, unless those stations opt to invoke retransmission consent and demand compensation, in which case the cable provider can decline to carry the channel. Cable TV systems are also required to offer a subscription package that provides these broadcast channels at a lower rate than the standard subscription rate. The basic programming package offered by cable TV systems is usually known as "basic cable" and provides access to a large number of cable TV channels, as well as broadcast television networks (e.g., ABC, CBS, The CW Television Network, Fox Broadcasting Company, NBC, Public Broadcasting Service (PBS), local-access television channels, free or low-cost public service channels such as C-SPAN and NASA TV, and several channels devoted to infomercials and home shopping) to defray costs. Some providers may provide a small number of national cable networks in their basic lineups. Most systems differentiate between basic cable, which has locals, home shopping channels and local-access television channels, and expanded basic (or "standard"), which carries most of the better-known national cable television networks. Most basic cable lineups have approximately 20 channels overall, while expanded basic has channel capacity for as many as 70 channels. Under U.S. regulations, the price of basic cable can be regulated by local authorities as part of their franchise agreements, usually costing less than US$20 per month. Standard, or expanded basic, cable is not subject to price controls. In addition to the basic cable packages, all systems offer premium channel add-on packages offering either just one premium network (e.g. HBO) or several premium networks for one price (e.g. HBO and Showtime together). Finally, most cable systems offer pay per view channels where users can watch individual movies, live programs, sports, etc. for an additional fee for single viewing at a scheduled time. (This is generally the only place where pornography airs on American cable.) Some cable systems have begun to offer on-demand programming, where customers can select programs from a list of offerings including recent releases of movies, concerts, sports, first-run TV shows and specials and start the program whenever they wish, as if they were watching a DVD or a VHS tape. Some of the offerings have a cost similar to renting a movie at a video store while others are free.

Starting in the late 1990s, advances in digital signal processing (primarily Motorola's DigiCipher 2 video compression technology in North America) have given rise to wider implementation of digital cable services. Digital cable provides many more television channels over the same available bandwidth, by converting cable TV channels to a digital signal and then compressing the signal. Currently, most systems offer a hybrid analog/digital cable system. This means they offer a certain number of analog channels via basic cable service with additional channels being made available via digital cable service. Thus subscribers wishing to have access to digital cable channels must have a special cable converter box, (or, more recently, a "Digital Cable Ready" TV and a CableCARD) to receive them. Additional subscription fees are also usually required to receive these digital channels.

Digital cable channels are touted as being able to offer a higher quality picture than their analog counterparts. This is often true, with a dramatic improvement in chroma resolution (120 lines for NTSC versus 270 for digital). However digital compression has a tendency to soften the quality of the television picture, particularly of channels that are more heavily compressed. Pixelation and other artifacts are often visible.

Many cable systems operate as de facto monopolies in the United States. While exclusive franchises are currently prohibited by federal law, and relatively few franchises were ever expressly exclusive, frequently only one cable company offers cable service in a given community. Overbuilders in the US, other than telephone companies with existing infrastructure, have traditionally had severe difficulty in financial and market penetration numbers. Overbuilders have had some success in the MDU market, in which relationships are established with landlords, sometimes with contracts and exclusivity agreements for the buildings, sometimes to the anger of tenants. The rise of Direct Broadcast Satellite systems providing the same type of programming using small satellite receivers, and of Verizon FiOS and other recent ventures by incumbent local exchange carriers such as U-verse, have also provided competition to incumbent cable TV systems.

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Famous quotes containing the words cable, television and/or programming:

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