ELECTRONIC MEDIA MANAGEMENT - Ayo Menulis FISIP UAJY

FIGURE 8.10 Analysis of multichannel video program distributors (MVPDs).
(Source: 2004 Year-End Industry Overview, p. 21. http://www.ncta.com. Used
with permission.)
same technologies that have resulted in the intensified competitive environment
in which the industry finds itself. Cable has found and is developing
new services and products. The industry has just scratched the surface of
high-speed Internet, telephone, digital tiering, DVRs, and music channels.
With all this has come a quantum increase in cable’s program performance
with audiences and acceptability by advertisers. Statistical analysis suggests
that these trends are likely to continue. And with all that will come continuing
revenue and profitability growth.
The cable industry is largely consolidated now. Eight multiple system
operators have 75 percent of subscribers. The build-out and consolidation
phase is largely over.
Cable has demonstrated its ability to thrive in a world of intense competition.
It emphasizes the market advantages it possesses. Digital conversion and
the development of new products and services indicate that the industry’s best
years are ahead. With its energies spent on business development and not on
responses to angry regulation, cable is on the high-speed digital path to
increased success.
SUMMARY
Cable is hardwired and requires rights-of-way over and under city streets to
gain access to viewers’ homes. Because of this unique requirement, cable systems
are licensed by local governments. The licenses are called franchises,
and they have to be renewed at intervals set forth in the franchise agreement.
Cable television systems are run by general managers, who answer to ownership.
Reporting to the general manager are the heads of departments with
clearly identified responsibilities. Usually, they include government affairs
Managing the Cable Television System
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