The QUBE
In 1974, Warner Communications entered the cable television industry by forming Warner Cable in Ohio and Virginia. On December 1, 1977, Warner Cable's Columbus, Ohio unit introduced the QUBE, the world's first interactive television programming system that predated Video On Demand by decades. QUBE featured 30 channels, including ten premium and pay-per-view networks and ten interactive channels operated by set-top box connected to a modem.
Among the channels introduced on the QUBE were precursors to popular channels that exists today including:
- Star Channel: Existing prior to the creation of QUBE in 1973, it served as a premium movie channel for the system. The direct precursor to The Movie Channel.
- Sight On Sound: A network that aired music programming such as concerts and music videos. It was the prototypical version of MTV.
- Pinwheel: An educational/entertainment network aimed towards preschoolers and children. Transformed into Nickelodeon in 1979 with the TV series later becoming a part that network's Nick Jr. block where it ran until 1990.
- Pay-Per-View: First-run movies, sporting events, headline news and special programming were available with a push of a button for a fee. The direct prototype of all pay-per-view services and in turn, video on demand.
Despite its technological innovation and vision, the creation of the QUBE and its relative financial failure meant that Warner Communications needed outside capital to expand beyond Columbus, Ohio. Additionally, Warner leader Steve Ross understood that the future of cable television was going to demand an ever expanding programming need. In December 1979, Warner Communications and American Express each contributed $75 million to form a joint venture with two divisions. Warner Amex Cable Company, run by Gus Hauser, would build local cable systems across the United States (today as Time Warner Cable, the second largest cable operator in America), and Warner Amex Satellite Entertainment Company (WASEC), run by former CBS Network President John A. Schneider, to supply programming to the rapidly expanding cable television universe.
Read more about this topic: Warner-Amex Satellite Entertainment