New Technology May Represent Change of Fortune for Cable TV Industry

It used to be that cable TV was the technology ofsame amount of money that their cable TV
choice for getting TV programming. This was truesubscription had cost on a service that offered about
even with the early availability of satellite TV, butthree times the number of channels, all of those
satellite TV at the time was too expensive for mostextra channels were essentially free. In short, nobody
people to afford, and even those who could afford itbut the cable TV industry cared whether or not the
still had to contend with the massive satellite dishesextra channels offered by the satellite TV industry
that the technology of the time required.were of decent quality because they were essentially
By the first half of the nineteen nineties, the situationfree.
changed with the introduction of new satellite TVNow the cable TV industry is finally implementing
technology that provided a much neededtechnology that could turn the tables in the other
improvement upon both the satellite TV that camedirection. This technology is called switched digital
before it as well as cable TV. This new wave ofvideo. Switched digital video essentially increases the
satellite TV technology required only a small satellitenumber of separate channels that a cable TV
dish that was three feet across at the most ratherprovider can offer by making better use of existing
than the older monstrosities that were over ten feetcable TV bandwidth. Right now cable TV providers
across. At the same time, the new technologysimply send out all of their channels all at once to all
enabled satellite TV technology to deliver moreof their subscribers. The digital receivers of the
channels at very reasonable prices.subscribers then filter out those channels. The
The exodus of TV viewers leaving cable TV in favorchannels that aren't part of the subscription are
of satellite TV started because of the realization thatfiltered out first, and then all of the channels that the
spending about the same amount of money onsubscriber doesn't want to watch at a given time are
satellite TV that they had been paying for cable TVfiltered out. This means that even though the cable
could provide those viewers with a much largerTV company may be transmitting hundreds of
selection of channels. The fact that the satellitechannels over a cable- and taking up most, if not all,
dishes were so much smaller and therefore moreof the cable's bandwidth- any given viewer is only
manageable also made a huge difference when itwatching one of those channels at a time. Switched
came to making satellite TV a realistic alternative fordigital video allows the cable TV company to deliver
suburbanites who hadn't had room for the olderjust the channel that a viewer wants to watch at
dishes. The cable TV company made its ownany given time. This means that the company can
situation worse by dismissing the extra channels asprovide a virtually unlimited number of channels.
lower quality than what cable TV provided andSwitched digital video may be just the technology
therefore not interesting to viewers. What the cablethat the cable TV industry needs to bring customers
industry didn't take into account was that viewersback from satellite TV.
like having more choices and if they could spend the