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In the history of transition of television network industry, early 2010s marked the epitome of its success. Over 105 million households in October 2010 subscribed to cable television; with the industry having a penetration of over 90% of TV homes (Adgate, 2020). Additionally, for the financial year 2013/2014, cable TV reported over $10 billion in ad commitment revenue, being the highest value reported in history (Adgate, 2020). However, recent statistics indicate that the number of subscribers has been reducing besides the ratings of several prominent networks declining. Despite the recent decline, increase in the number of television network has significant impact on the overall broadcasting sector. Whereas the increase resulted in competition that increased the quality of service, it also led to fragmentation of the local audience.
An increase in cable television led to higher revenue collection. As reported by Adgate (2020), at the peak of cable TV, the industry posted over $10 billion in 2013/14. Besides, the increase in the number of users meant that the service providers had to optimize the quality of their service to better compete for clients. Accordingly, this resulted in a better service to the subscribers. However, the growth of television was accompanied by an increase in the required signals to maximise signal reception. Some networks were forced fragment their audience to avoid interference from other networks. The ultimate effect of this fragmentation is the reduction in the revenue of local stations (Adgate, 2020). Moreover, the expansion of the number of television networks caused a decrease in the amount of programming and diversity available for non-subscribers. Additionally, to avoid interference from adjacent broadcasting, service providers are being forced to acquire more powerful transmitters that increase expenses.
In conclusion, increase in the number of cable TV networks led to increase in the industry’s revenue. On the downside, it increased expenses for individual service providers by requiring more powerful transmitters. Additionally, the number of programming reduced; particularly for non-subscribers.
References
Adgate, B. (2020). The Rise And Fall Of Cable Television. Web.
Hsu, W. Y., Liu, Y. L., & Chen, Y. L. (2016). The impact of newly-emerging media on the cable TV industry. Taiwan Communication Society.
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