Cable Television
The cable television industry provides multichannel video services to approximately two-thirds of all television households in the United States. In addition to offering different tiers of programming, many cable systems offer ancillary services, such as high-speed Internet access and local telephone services. There are approximately 10,700 cable systems in operation in the United States. Many companies own more than one system, and are known in the cable industry as multiple system operators (MSOs).
Major Players in the Cable Industry
Ownership of cable television systems has changed considerably since 1980, resulting in a rapidly consolidated industry. Five companies dominate the cable industry. AT&T, Time Warner, Comcast, Cox Communications, and Adelphia are the leading MSOs. These companies account for 70 percent of all cable television customers. There are a number of smaller companies that serve the remainder of the cable audience. Several companies also hold ownership interests in cable television service in foreign markets.
While large media companies dominate cable ownership at the national level, cable is in reality a local service. Cable operators are awarded a franchise to serve a specific community or geographical area. The local governing board (e.g., city council) actually awards a franchise for cable service, usually for a ten-to fifteen-year period.
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