The new cash cow is cable TV. Do you remember when there was no cable television? It only existed in places like the desert and the mountains where the radio waves could not reach. It was a novelty a few decades ago. Now people cannot seem to live without it. But there was actually a time when it was not a cable box people had in their home but an antenna on the roof.
You would go around the neighborhood and of course see one on each house. How else could anyone get television reception? Well, you could have the rabbit ears antenna. But you had to constantly adjust those for good reception. Now it is the box that brings us the broadcast from the cable company's tower.
But then because companies decided that they could make money by building broadcast towers around counties and cities they met with politicians and explained that they would pay a lot of government taxes and make the program worthwhile to their cities and counties.
And the cable companies met with potential broadcasters about creating content different from the network stations. And they sold them on the idea of sharing their revenue from memberships with the broadcasters so the broadcasters started putting together television programs they thought people would watch.
Until now no one had thought of how to make money off cable television. The idea of having to pay to watch TV was like having to pay to listen to radio. But now it is a multi billion dollar industry that is only growing. And the tax revenue continues to grow and state and local government likes the money it gets so it asks for more and more.
So state and local government share in the revenue. And all they have to do is make it legal for a particular cable company to broadcast in their area. This has to do with the zoning laws as the air waves are part of the property that the government controls.
The broadcasters of the stations provide the content and they are paid by the sponsors of their programs, those wonderfully clever and ever so enjoyable commercials we get to watch between our programs pay the broadcasters for the time they spend putting together the content. By the way the broadcasters are starting to demand more of the revenue from the cable company's profits.
And because the cable company's like the amount of profits they make, expect your cable bill to go up to pay the broadcaster's demand. We will bare the brunt of this demand not the cable company. But where would we be without the cable TV? Well, most of us would be stuck with seven channels. But that was not so bad when you think of it.
But now shows are created for the primary reason of syndication. This way when a show makes it run for two to five years the network sells it off the the broadcasters who sell it to the cable company who sells it to us. And in the end they all make money and government makes tax revenue and you can watch television. TV for free, who ever remembers such a thing?
You would go around the neighborhood and of course see one on each house. How else could anyone get television reception? Well, you could have the rabbit ears antenna. But you had to constantly adjust those for good reception. Now it is the box that brings us the broadcast from the cable company's tower.
But then because companies decided that they could make money by building broadcast towers around counties and cities they met with politicians and explained that they would pay a lot of government taxes and make the program worthwhile to their cities and counties.
And the cable companies met with potential broadcasters about creating content different from the network stations. And they sold them on the idea of sharing their revenue from memberships with the broadcasters so the broadcasters started putting together television programs they thought people would watch.
Until now no one had thought of how to make money off cable television. The idea of having to pay to watch TV was like having to pay to listen to radio. But now it is a multi billion dollar industry that is only growing. And the tax revenue continues to grow and state and local government likes the money it gets so it asks for more and more.
So state and local government share in the revenue. And all they have to do is make it legal for a particular cable company to broadcast in their area. This has to do with the zoning laws as the air waves are part of the property that the government controls.
The broadcasters of the stations provide the content and they are paid by the sponsors of their programs, those wonderfully clever and ever so enjoyable commercials we get to watch between our programs pay the broadcasters for the time they spend putting together the content. By the way the broadcasters are starting to demand more of the revenue from the cable company's profits.
And because the cable company's like the amount of profits they make, expect your cable bill to go up to pay the broadcaster's demand. We will bare the brunt of this demand not the cable company. But where would we be without the cable TV? Well, most of us would be stuck with seven channels. But that was not so bad when you think of it.
But now shows are created for the primary reason of syndication. This way when a show makes it run for two to five years the network sells it off the the broadcasters who sell it to the cable company who sells it to us. And in the end they all make money and government makes tax revenue and you can watch television. TV for free, who ever remembers such a thing?
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