The emergence of CATV: A look at the evolution of a revolution

The growth of CATV or cable television has often been characterized as "explosive." Since 1952, the first year in which reliable statistics were accumulated, the number of CATV systems have multiplied 35 times and it is now estimated that over 4½ million families are receiving CATV service from approximately 2350 cable TV systems. This growth is especially impressive when it is considered that the CATV industry, whose very existence has depended upon the existence and viability of the TV broadcast industry, has been locked in a bitter struggle with that industry throughout most of its 21-year history. Unquestionably the two most important factors influencing the growth and posture of the CATV industry today have been the uncompromising demands of the public for a greater diversity in choices of TV programming than the broadcast industry has been able to provide, and the competitively motivated opposition, vigorously prosecuted before congressional committees and the FCC. This has resulted in a series of investigations and Reports and Orders by the Federal Communications Commission that have produced a comprehensive regulatory scheme designed by the Commission to maintain CATV as a supplementary service to broadcasting, and conversely to protect the broadcast industry, particularly UHF broadcasting, against any adverse economic impact by CATV that would endanger the viability of the broadcast service. Whether or not this concern is economically justified and if so, the nature and extent of regulation necessary, were the principal contentions between the two industries over the years. The first formal rules became effective in 1965 but were applicable only to cable systems using microwave radio relay services. In subsequent years the Commission was able to establish firmly its jurisdiction over the entire CATV industry and the Commission's rules and policies has now evolved to the point that virtually all cable television developments in the top 100 television markets have stopped. The Commission has, however, been the subject of increasing criticism from outside the CATV industry for its restrictive CATV regulatory policies. This criticism appears to be effective and more recent actions of the FCC indicate that it clearly recognizes an exciting potential for cable technology in furnishing a variety of television and other communication services between homes, businesses, and information libraries. The critical issues today are how to secure the optimum services from both the broadcast and cable technologies.