WEBVTT - Evolution of Watching TV

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<v Speaker 1>With technology with tech Stuff from how stuff works dot com.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I am your host,

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<v Speaker 1>Jonathan Strickland. I'm an executive producer at how Stuff Works

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<v Speaker 1>and I love all things tech. And today we're gonna

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<v Speaker 1>talk a bit about the evolution of how we get

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<v Speaker 1>television content. Now, I've already done episodes specifically about the

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<v Speaker 1>early days of television and the birth of cable, but

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<v Speaker 1>today we're going to take a step back and look

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<v Speaker 1>at general trends and how they've changed over the decades.

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<v Speaker 1>So kind of how we went from broadcast to cable

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<v Speaker 1>and satellite to internet delivered television, And what are the

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<v Speaker 1>various not just technological challenges, but the legal challenges that

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<v Speaker 1>exist in this world, the business challenges, And why is

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<v Speaker 1>it that you can't just have alah cart I know

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<v Speaker 1>that's the dream for everybody about getting a package where

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<v Speaker 1>you have just the channels you want and none of

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<v Speaker 1>the ones you don't want, because it seems like every

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<v Speaker 1>service out there it comes with a bundle, right, and

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<v Speaker 1>you have channels that you might really like, and there

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<v Speaker 1>might be a few channels that you really like, but

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<v Speaker 1>they're not included in that bundle, And then there's a

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<v Speaker 1>whole bucket load of channels that have stuff that you

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<v Speaker 1>either have no interest in or you would actively avoid

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<v Speaker 1>with every fiber of your being. You would never even

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<v Speaker 1>dream of just channel surfing because it would mean going

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<v Speaker 1>through too many channels of stuff what you do not want.

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<v Speaker 1>So we're gonna take a look at why that is,

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<v Speaker 1>Why are we in that world? And it's not just

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<v Speaker 1>about finding new ways to watch the latest episode of

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<v Speaker 1>Supernatural though those when Chester Boys are indeed dreamy. The

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<v Speaker 1>changes affect other important factors as well, like how is

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<v Speaker 1>television monetized and how do we as consumers pay for

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<v Speaker 1>that television. Now, for this episode, I'm largely focusing on

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<v Speaker 1>the United States as the model, which is because I

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<v Speaker 1>live there. I'm I live in the United States. A

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<v Speaker 1>lot of what I'll talk about also pertains to other nations,

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<v Speaker 1>but there are particulars that will be different. So, for example,

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<v Speaker 1>in the United Kingdom, any place that has a television

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<v Speaker 1>that is either being used to watch television live or

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<v Speaker 1>to record TV transmissions, no matter how those transmissions are sent,

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<v Speaker 1>whether it's over broadcast, cable, satellite, whatever, you gotta pay

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<v Speaker 1>a television licensing fee. I mean like individual households pay

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<v Speaker 1>a license fee for their TVs. Now, for those folks

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<v Speaker 1>over in the UK, you're all listening to this and

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<v Speaker 1>you're saying, well, yeah, that's true. But here in the

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<v Speaker 1>United States that would be really unheard of. So Americans,

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<v Speaker 1>if you head over to the UK and you decide, hey,

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<v Speaker 1>I'm going to live here, now, you would actually need

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<v Speaker 1>to purchase a television license to watch your own TV

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<v Speaker 1>in your own home. But then in the UK, the

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<v Speaker 1>British Broadcasting Company uses those license fees to fund their work.

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<v Speaker 1>So without the TV license you lose your precious doctor who,

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<v Speaker 1>So just keep that in mind. But that's an aside.

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<v Speaker 1>I want to talk about the evolution from broadcast TV

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<v Speaker 1>to cable and satellite, to time shifting technologies, to internet

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<v Speaker 1>delivery and place shifting options as well. Now, later in

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<v Speaker 1>this episode, we're gonna have a discussion with Jim shade

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<v Speaker 1>Chatari of Sling TV to talk about how their approach

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<v Speaker 1>is guiding us closer to that heavily desired a la

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<v Speaker 1>carte strategy for getting television content, So that will come

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<v Speaker 1>up a little bit later in this episode. Now, broadcast

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<v Speaker 1>television starts before anyone outside of research and development labs

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<v Speaker 1>or enterprising inventors even had a TV set. Generally, most

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<v Speaker 1>scholars agree that General Electric created the first broadcast station

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<v Speaker 1>in January. Originally, they broadcasted under the channel designation to

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<v Speaker 1>x B using a seven killer hurts frequency. Now, their

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<v Speaker 1>broadcast was for mechanical television, not not electronic television. It's

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<v Speaker 1>not the televisions that we know today, but the predecessors,

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<v Speaker 1>the mechanical models that actually did use mechanical elements to

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<v Speaker 1>transmit pictures. And if that just blew your mind, you

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<v Speaker 1>need to go back and listen to my podcasts called

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<v Speaker 1>The TV Story. It was actually a three part series.

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<v Speaker 1>So there's TV Story Story Part one, Part two, and

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<v Speaker 1>Part four. Because you know we always skip part three. No,

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<v Speaker 1>that's a lie. There's also part three. The first two

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<v Speaker 1>parts really focus on the invention and development of television.

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<v Speaker 1>The first part came out on April and the second

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<v Speaker 1>part came out on April, So check those out if

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<v Speaker 1>you want to hear more about the development on the

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<v Speaker 1>television set side, but let's focus more on just the

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<v Speaker 1>concept of broadcasting. In September nine, General Electric behind to

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<v Speaker 1>broadcast the first television drama on their station, which at

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<v Speaker 1>that point was called W two x B. The actual

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<v Speaker 1>drama's name was The Queen's Messenger, and it was described

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<v Speaker 1>as a quote blood and thunder, play with guns, daggers

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<v Speaker 1>and poison end quote. And that I actually pulled from

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<v Speaker 1>a website for the Early Television Museum. So great website

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<v Speaker 1>if you want to learn more about some of the

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<v Speaker 1>earliest forms of TV and broadcast. And frankly, that description

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<v Speaker 1>makes it sound like The Queen's Messenger was a precursor

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<v Speaker 1>to shows like Breaking Bad or Game of Thrones, But

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<v Speaker 1>according to the website, it was not exactly high drama.

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<v Speaker 1>Most reports made it sound like the program was perhaps

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<v Speaker 1>a little bit more ambitious and the technology could technically support.

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<v Speaker 1>Some people said it was proof that quote radio moving

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<v Speaker 1>pictures end quote weren't quite ready for the home. And yeah,

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<v Speaker 1>that is what some people referred to television as early on,

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<v Speaker 1>was radio moving pictures. After all, you were broadcasting these

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<v Speaker 1>signals over radio waves, and the closest analog really to

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<v Speaker 1>TV at that point was the radio. So not that

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<v Speaker 1>unusual or at least not that surprising. W two XB

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<v Speaker 1>would broadcast its first electronic television signal a decade later,

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<v Speaker 1>in nineteen thirty nine. Electronic televisions had been pioneered in

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<v Speaker 1>the late nineteen twenties. Farnsworth. You probably have heard that name,

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<v Speaker 1>Filo Farnsworth. He actually created electronic TVs and he features

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<v Speaker 1>heavily in the TV story series that I mentioned a

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<v Speaker 1>second ago. Our c A was heavily invested in electronic television.

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<v Speaker 1>In the early days. The company had been a dominant

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<v Speaker 1>force in radio and owned two NBC radio networks. The

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<v Speaker 1>company wanted to establish a dominant position in the burgeoning

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<v Speaker 1>world of broad cast television, and so they invested millions

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<v Speaker 1>of dollars to do so. That was a significant investment.

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<v Speaker 1>I mean it would be today, but even more so

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<v Speaker 1>back then because I think fifty million dollars in nineteen

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<v Speaker 1>twenties money nineteen thirties money. That's that's a huge chunk

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<v Speaker 1>of change. Meanwhile, there was a competitor that was also

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<v Speaker 1>interested in getting in the game. That would be Columbia

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<v Speaker 1>Broadcasting System or CBS. There was another powerhouse in the

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<v Speaker 1>radio world, and they were jumping into early TV broadcasts

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<v Speaker 1>and created two newscasts a day. Each of those newscasts

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<v Speaker 1>lasted about fifteen minutes, so this was quite some time

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<v Speaker 1>before the twenty four hour news cycle, and these broadcasts

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<v Speaker 1>weren't coast to coast. They reached a relatively small audience,

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<v Speaker 1>primarily in New York City. So these early early broadcast

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<v Speaker 1>networks were very much local in nature, and in fact,

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<v Speaker 1>that's how we would see television evolved at first, lots

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<v Speaker 1>of little islands of broadcast TV that were mostly centered

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<v Speaker 1>around cities, and if you didn't live near one of

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<v Speaker 1>those cities, it became very challenging for you to get

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<v Speaker 1>any sort of content. There was a very little reason

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<v Speaker 1>for you to go out and get a television because

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<v Speaker 1>chances are you wouldn't have an antenna strong enough to

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<v Speaker 1>pick up the signals, or the broadcast antenna wouldn't be

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<v Speaker 1>strong enough to send the signals so that you could

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<v Speaker 1>actually receive anything worth watching. So the early early days,

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<v Speaker 1>this was very much an urban sort of form of entertainment,

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<v Speaker 1>and it would only be later that we would see

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<v Speaker 1>ways of distributing it to broader networks. By the early

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<v Speaker 1>nineteen forties, the US government was beginning to create regulations

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<v Speaker 1>for the new television industry, and this would be an

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<v Speaker 1>ongoing kind of back and forth between the US government

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<v Speaker 1>and various providers, whether they were broadcast companies, cable company,

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<v Speaker 1>satellite companies, or what have you. Part of this process

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<v Speaker 1>meant that the government wanted to bust up some of

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<v Speaker 1>the bigger companies like our c A. Then newly formed

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<v Speaker 1>Federal Communications Commission. The f c C went up to

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<v Speaker 1>our c A and said, hey, we see you've got

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<v Speaker 1>a couple of NBC networks. Do you need to knock

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<v Speaker 1>that off? Dump one of them. You can keep one,

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<v Speaker 1>but you've gotta get rid of the other one. So

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<v Speaker 1>our c A did as it was told and spun

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<v Speaker 1>off one of the two NBC networks, and that became

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<v Speaker 1>a newly formed company that took on a new name.

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<v Speaker 1>That new name was the American Broadcasting Company, or ABC.

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<v Speaker 1>Now ABC wouldn't really become a television broadcast company for

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<v Speaker 1>a few more years, but then you get the three

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<v Speaker 1>big early broadcast networks, ABC, CBS, and NBC here in

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<v Speaker 1>the United States. Fox, of course, would follow much much

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<v Speaker 1>much later. By the late nineteen forties and early nineteen fifties,

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<v Speaker 1>commercial television was becoming a thing. Sponsored programs would feature

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<v Speaker 1>frequent pauses to identify the sponsor and urge people to

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<v Speaker 1>go out and buy the product. It could be incorporated

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<v Speaker 1>directly into a show. In several cases, even the NBC

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<v Speaker 1>News in the late nineteen forties was sponsored by a

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<v Speaker 1>tobacco company, and as such, the host, John Cameron Swayze

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<v Speaker 1>was required to have a smoking cigarette in frame during

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<v Speaker 1>every shot. He didn't have to have it in his mouth,

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<v Speaker 1>but it had to be seen and it had to

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<v Speaker 1>be lit. Enlightened times, ladies and gentlemen. The programs on

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<v Speaker 1>television at that time were primarily extensions of previously existing

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<v Speaker 1>radio programs. So if you ever watch old Classic TV

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<v Speaker 1>and then you find out, hey, there was also a

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<v Speaker 1>radio show, well, chances are the radio show came first,

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<v Speaker 1>and then they would end up adapting that into a

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<v Speaker 1>television series, finding often that doing so was not always

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<v Speaker 1>easy because, as it turns out, with radio shows, you

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<v Speaker 1>have an unlimited visual effects budget because it is in

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<v Speaker 1>the mind of the listener. If I do a science

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<v Speaker 1>fiction series Ease or a Western, I don't have to

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<v Speaker 1>actually have any spaceships or horses. I can just create

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<v Speaker 1>a little bit of sound effects and let the listener

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<v Speaker 1>provide all the visuals. But if I'm going to do

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<v Speaker 1>a television series, suddenly, I gotta produce some stuff otherwise

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<v Speaker 1>viewers are going to be turned off pretty quickly. So

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<v Speaker 1>it was a mixed bag, but it did mean that

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<v Speaker 1>there were a lot of people drawing upon the experience

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<v Speaker 1>of radio broadcasting in those early TV broadcasting days, and

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<v Speaker 1>those three big broadcast networks were largely able to float

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<v Speaker 1>their television businesses by pulling from radio profits. So in

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<v Speaker 1>other words, they were taking the profits they were making

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<v Speaker 1>from one business and using it to support a second one.

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<v Speaker 1>Because even though it was revolutionary, there wasn't a huge

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<v Speaker 1>audience yet, there was not really an easy way to

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<v Speaker 1>make a lot of money in TV because there just

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<v Speaker 1>weren't that many people able to afford a television set.

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<v Speaker 1>So this was kind of a necessary evil in order

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<v Speaker 1>to keep a very young industry afloat while its audience

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<v Speaker 1>was able to start to coalesce and and grow, and

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<v Speaker 1>it ended up working. It paid off big time, but

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<v Speaker 1>it did take some time to do so. Now keep

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<v Speaker 1>in mind television's at this time, we're still pretty expensive,

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<v Speaker 1>and in order to get any use of them, you

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<v Speaker 1>still needed to live somewhere relatively close to a broadcasting

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<v Speaker 1>tower unless you had really innovative approaches to getting content

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<v Speaker 1>like people did and say Pennsylvania. But we'll get to

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<v Speaker 1>that in a second. Now, it would be a good time,

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<v Speaker 1>I think, to talk about how broadcast television works from

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<v Speaker 1>a very very high level. First, in order to send

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<v Speaker 1>a television signal out over the air, you need a

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<v Speaker 1>certain amount of bandwidth in radio frequencies. It's because you're

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<v Speaker 1>setting a lot of information out, the image information, the

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<v Speaker 1>audio information for picture and sound, plus you want a

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<v Speaker 1>little room on either side to avoid interference. If you're

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<v Speaker 1>talking about like a fairly modern broadcast that's about six

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<v Speaker 1>mega hurts a bandwidth space on the radio spectrum, and

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<v Speaker 1>again that creates a bit of a buffer so that

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<v Speaker 1>you don't have two channels overlapping each other and interfering

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<v Speaker 1>with one another. So in the United States, the government

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<v Speaker 1>would dictate which frequencies could be used for stuff like

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<v Speaker 1>television or radio broadcasts. They could also determine what the

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<v Speaker 1>other parts of the spectrum could be used for. And

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<v Speaker 1>this is a way again to avoid having two different

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<v Speaker 1>services try and use the exact same bandwidth and thus

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<v Speaker 1>create interference with each other. It's a very orderly system

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<v Speaker 1>to make sure that things run smoothly. Otherwise you would

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<v Speaker 1>have amateur radio operators honing in and and booting off

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<v Speaker 1>actual commercial radio stations or television stations, depending upon the

0:13:56.120 --> 0:13:59.520
<v Speaker 1>power of the transmitter and maybe how far away you

0:13:59.559 --> 0:14:03.640
<v Speaker 1>happen to be from that transmission source. So in the

0:14:03.720 --> 0:14:08.440
<v Speaker 1>United States, uh the government said that from fifty four

0:14:08.480 --> 0:14:11.800
<v Speaker 1>mega hurts to the eighty eight mega hurts range, you

0:14:11.800 --> 0:14:14.480
<v Speaker 1>would have channels two through six. Then you have to

0:14:14.559 --> 0:14:16.920
<v Speaker 1>jump up to a hundred seventy four mega hurts to

0:14:16.960 --> 0:14:20.160
<v Speaker 1>two hundred sixteen mega hurts for channels seven through thirteen,

0:14:20.680 --> 0:14:23.520
<v Speaker 1>and then jump up again to four hundred seventy mega

0:14:23.560 --> 0:14:25.360
<v Speaker 1>hurts all the way up to eight hundred ninety mega

0:14:25.400 --> 0:14:28.280
<v Speaker 1>hurts for channels fourteen through three. Now, the reason why

0:14:28.360 --> 0:14:32.440
<v Speaker 1>there are gaps between six and seven and between thirteen

0:14:32.480 --> 0:14:38.200
<v Speaker 1>and fourteen is because those frequencies had already been allocated

0:14:38.280 --> 0:14:43.680
<v Speaker 1>to other radio uses, so you couldn't just shift everything over.

0:14:44.040 --> 0:14:47.960
<v Speaker 1>That would require an enormous amount of work. So instead

0:14:47.960 --> 0:14:50.800
<v Speaker 1>of shifting everybody, you say, all right, well, we've got

0:14:50.840 --> 0:14:54.280
<v Speaker 1>this band of frequencies available here, We're going to allocate

0:14:54.320 --> 0:14:57.800
<v Speaker 1>that to these channels. Then we'll go up the spectrum

0:14:57.880 --> 0:15:00.840
<v Speaker 1>until we can find the next wide band of frequencies

0:15:00.840 --> 0:15:04.040
<v Speaker 1>that are available to allocate to TV again, and they

0:15:04.040 --> 0:15:07.120
<v Speaker 1>did that a couple of times. As for the tech

0:15:07.240 --> 0:15:10.400
<v Speaker 1>of the broadcast, it's pretty simple and concept. You have

0:15:10.520 --> 0:15:13.800
<v Speaker 1>a camera and a microphone on one end that's capturing

0:15:13.840 --> 0:15:17.760
<v Speaker 1>obviously visual and audio data, converts it into an electronic signal.

0:15:18.120 --> 0:15:22.040
<v Speaker 1>That signal goes to a transmitter that's essentially a giant antenna.

0:15:22.680 --> 0:15:25.040
<v Speaker 1>You amplify that signal quite a bit and you send

0:15:25.080 --> 0:15:28.320
<v Speaker 1>it up the antenna, which then converts that signal to

0:15:28.560 --> 0:15:33.080
<v Speaker 1>radio waves. So you get these electromagnetic waves that emanate

0:15:33.120 --> 0:15:36.720
<v Speaker 1>outward from the antenna. On the television side, you would

0:15:36.720 --> 0:15:39.560
<v Speaker 1>have a receiving antenna that would pick up those incoming

0:15:39.640 --> 0:15:43.680
<v Speaker 1>radio waves and then convert them back into a television signal,

0:15:43.760 --> 0:15:46.480
<v Speaker 1>which gets amplified in the TV set, and then you're

0:15:46.520 --> 0:15:49.160
<v Speaker 1>able to watch your stories. Now, obviously it gets more

0:15:49.160 --> 0:15:52.880
<v Speaker 1>technical than that, but that's good enough for our purposes,

0:15:52.920 --> 0:15:56.040
<v Speaker 1>with not an episode to talk about the actual workings

0:15:56.120 --> 0:16:00.720
<v Speaker 1>of broadcast TV. Just as commercial broadcas as television was

0:16:00.720 --> 0:16:04.280
<v Speaker 1>getting its start, so was cable television. Now I don't

0:16:04.280 --> 0:16:07.960
<v Speaker 1>mean cable channels, but rather using actual physical cable as

0:16:07.960 --> 0:16:11.120
<v Speaker 1>a delivery mechanism for television signals. So in other words,

0:16:11.440 --> 0:16:16.160
<v Speaker 1>we're not talking cable TV like MTV and UH, Comedy

0:16:16.200 --> 0:16:18.560
<v Speaker 1>Central and those kind of things. We're talking about just

0:16:18.800 --> 0:16:24.440
<v Speaker 1>getting television signals using cables. Uh. This arose in three

0:16:24.440 --> 0:16:27.400
<v Speaker 1>different areas in the United States, more or less simultaneously

0:16:27.520 --> 0:16:31.600
<v Speaker 1>and independently of each other. It was in nine which

0:16:31.680 --> 0:16:33.880
<v Speaker 1>is pretty incredible when you think about it, that it

0:16:33.920 --> 0:16:37.600
<v Speaker 1>was that early, and it was happening in Arkansas, Oregon,

0:16:37.640 --> 0:16:41.080
<v Speaker 1>and Pennsylvania. And the three things that these places had

0:16:41.120 --> 0:16:44.200
<v Speaker 1>in common was that they had some communities that were

0:16:44.240 --> 0:16:47.960
<v Speaker 1>a good distance away from these urban centers and therefore

0:16:48.000 --> 0:16:51.800
<v Speaker 1>could not easily pick up television signals. But they had

0:16:51.920 --> 0:16:56.440
<v Speaker 1>populations that people who wanted to watch TV. So what's

0:16:56.440 --> 0:16:59.160
<v Speaker 1>your solution if you can't really get a signal out

0:16:59.160 --> 0:17:03.320
<v Speaker 1>to your house. Well, they decided to take a sort

0:17:03.320 --> 0:17:08.520
<v Speaker 1>of communal approach. H Essentially, the community would put up

0:17:08.520 --> 0:17:11.480
<v Speaker 1>a big receiver antenna someplace that would get the best reception,

0:17:11.560 --> 0:17:14.320
<v Speaker 1>like at the top of a really tall hill, and

0:17:14.480 --> 0:17:18.960
<v Speaker 1>they would receive broadcast signals at this big antenna. Now

0:17:19.000 --> 0:17:21.560
<v Speaker 1>that big antenna would be connected to a system that

0:17:21.720 --> 0:17:26.600
<v Speaker 1>used cables to send the TV signal to distant homes.

0:17:26.840 --> 0:17:30.920
<v Speaker 1>So if you think about it like a regular television set,

0:17:31.680 --> 0:17:33.440
<v Speaker 1>if you have a TV set at home and you've

0:17:33.440 --> 0:17:37.080
<v Speaker 1>got a regular antenna set up, it's essentially the same thing,

0:17:37.320 --> 0:17:41.760
<v Speaker 1>except the signal is traveling a much further distance in

0:17:41.800 --> 0:17:45.280
<v Speaker 1>the cables than it would from the antenna to your screen.

0:17:45.680 --> 0:17:48.520
<v Speaker 1>It's going through a cable that actually crosses the land

0:17:49.440 --> 0:17:53.040
<v Speaker 1>or rather as usually strung up on utility polls, and

0:17:53.160 --> 0:17:58.959
<v Speaker 1>so you can have people in very distant regions watch television.

0:17:59.000 --> 0:18:02.399
<v Speaker 1>They're getting the low coal broadcast, uh, they're picking it

0:18:02.520 --> 0:18:06.320
<v Speaker 1>up from a centralized antenna that is then sending the

0:18:06.359 --> 0:18:09.840
<v Speaker 1>signal out to these distant homes. It was a pretty

0:18:09.840 --> 0:18:14.080
<v Speaker 1>clever way of fixing things, although it would cause some

0:18:14.200 --> 0:18:16.560
<v Speaker 1>issues further down the line, and we'll talk about those

0:18:16.640 --> 0:18:20.359
<v Speaker 1>towards the end of this episode. This idea of how

0:18:20.440 --> 0:18:26.200
<v Speaker 1>do you how do you end up reconciling the broadcast

0:18:26.280 --> 0:18:29.040
<v Speaker 1>side of this business with the cable side of this business.

0:18:30.160 --> 0:18:33.640
<v Speaker 1>But at the beginning, it was just a way of

0:18:33.680 --> 0:18:36.880
<v Speaker 1>allowing people who otherwise would not have access to television

0:18:36.920 --> 0:18:41.440
<v Speaker 1>at all to get that access. By the early nineteen sixties,

0:18:41.440 --> 0:18:44.240
<v Speaker 1>there were about eight hundred cable systems in the United

0:18:44.320 --> 0:18:48.480
<v Speaker 1>States with more than eight hundred thousand subscribers, and larger

0:18:48.520 --> 0:18:51.000
<v Speaker 1>companies were starting to get in on the game. They

0:18:51.000 --> 0:18:54.119
<v Speaker 1>were moving in on the domain that had been the

0:18:54.320 --> 0:18:58.639
<v Speaker 1>arena for smaller businesses. This is kind of the story

0:18:58.640 --> 0:19:01.439
<v Speaker 1>of Comcast. I also at a show about that. If

0:19:01.480 --> 0:19:04.200
<v Speaker 1>you search the tex Stuff archives, you'll find the story

0:19:04.240 --> 0:19:07.240
<v Speaker 1>of Comcast, and you'll learn that a lot of Comcasts

0:19:07.320 --> 0:19:13.000
<v Speaker 1>history involved the company buying up smaller companies, regional companies,

0:19:13.400 --> 0:19:17.280
<v Speaker 1>and growing their own business that way, and they became

0:19:17.359 --> 0:19:21.640
<v Speaker 1>a coast to coast business largely by buying up other companies.

0:19:21.680 --> 0:19:26.119
<v Speaker 1>They didn't grow their subscribers just by convincing people to

0:19:26.280 --> 0:19:30.200
<v Speaker 1>join Comcasts. They grew their subscribers largely by buying up

0:19:30.520 --> 0:19:33.960
<v Speaker 1>other companies that already had a large subscriber base. And

0:19:33.960 --> 0:19:35.920
<v Speaker 1>they just kept getting bigger and bigger that way. And

0:19:36.080 --> 0:19:38.439
<v Speaker 1>they were not the only company to do that, although

0:19:39.080 --> 0:19:42.520
<v Speaker 1>that was of course the focus of my episodes. Now.

0:19:43.320 --> 0:19:46.040
<v Speaker 1>Around this time, the FCC put some limits on what

0:19:46.200 --> 0:19:49.920
<v Speaker 1>cable companies could do. For example, they weren't supposed to

0:19:50.000 --> 0:19:53.760
<v Speaker 1>run cables so that a person in one service area

0:19:54.040 --> 0:19:56.520
<v Speaker 1>like a city, would be able to get access to

0:19:56.560 --> 0:20:00.840
<v Speaker 1>the local programming of a different service area different So

0:20:00.880 --> 0:20:05.000
<v Speaker 1>in other words, I shouldn't be able at this time

0:20:05.560 --> 0:20:08.919
<v Speaker 1>be able to turn on my television in Atlanta and

0:20:08.960 --> 0:20:12.840
<v Speaker 1>watch local Chicago broadcasts. That would have been a no

0:20:12.840 --> 0:20:16.000
<v Speaker 1>no around the early nineteen sixties according to the f

0:20:16.200 --> 0:20:19.600
<v Speaker 1>c C. Now, one thing this managed to do was

0:20:19.720 --> 0:20:22.600
<v Speaker 1>kind of put the brakes on the cable industry at

0:20:22.600 --> 0:20:25.919
<v Speaker 1>that time, because now big companies were saying, well, it's

0:20:25.920 --> 0:20:27.679
<v Speaker 1>starting to become a headache. I mean, there are all

0:20:27.720 --> 0:20:31.879
<v Speaker 1>these little local broadcast areas where this makes sense, but

0:20:32.040 --> 0:20:35.919
<v Speaker 1>we'd have to operate as almost like a franchise across

0:20:35.960 --> 0:20:39.360
<v Speaker 1>the United States, and that was a little bit more

0:20:39.440 --> 0:20:42.640
<v Speaker 1>daunting of a task than having a unified approach. So

0:20:42.720 --> 0:20:46.919
<v Speaker 1>it actually slowed down the deployment of cable TV in

0:20:46.960 --> 0:20:50.040
<v Speaker 1>the US for about a decade. But in nineteen seventy two,

0:20:50.520 --> 0:20:53.480
<v Speaker 1>the FCC decided ease back on some of those restrictions.

0:20:53.520 --> 0:20:56.280
<v Speaker 1>They started to deregulate the cable industry and this would

0:20:56.280 --> 0:20:59.000
<v Speaker 1>continue on through the next two decades. So this is

0:20:59.040 --> 0:21:02.359
<v Speaker 1>also when the first pay TV network came about. That

0:21:02.359 --> 0:21:05.840
<v Speaker 1>would be the Home Box Office or HBO network. To

0:21:05.920 --> 0:21:08.159
<v Speaker 1>learn more about that story, you can check out the

0:21:08.160 --> 0:21:11.200
<v Speaker 1>three part series on the HBO story, the first episode

0:21:11.240 --> 0:21:16.359
<v Speaker 1>published on May fen. Now, HBO's Passed is closely tied

0:21:16.359 --> 0:21:19.680
<v Speaker 1>to the rise of cable television and the other network

0:21:19.720 --> 0:21:22.679
<v Speaker 1>that really fostered the growth of cable TV in the

0:21:22.760 --> 0:21:27.199
<v Speaker 1>United States, as in this idea of nationalized cable, not nationalized,

0:21:27.240 --> 0:21:29.720
<v Speaker 1>but national cable in the sense that you could watch

0:21:30.320 --> 0:21:34.760
<v Speaker 1>content from other places on your local TV. That big

0:21:34.840 --> 0:21:40.200
<v Speaker 1>network was w TBS, the Ted Turner Network, and along

0:21:40.200 --> 0:21:44.520
<v Speaker 1>with HBO, this was suddenly an ability for people in

0:21:44.720 --> 0:21:47.320
<v Speaker 1>very different places in the US to get access to

0:21:47.359 --> 0:21:51.440
<v Speaker 1>the same content as opposed to relying solely upon their

0:21:51.520 --> 0:21:56.000
<v Speaker 1>local providers, their local broadcasters. In nine four, the Cable

0:21:56.040 --> 0:21:58.960
<v Speaker 1>Act further deregulated the industry, and there was an enormous

0:21:58.960 --> 0:22:02.720
<v Speaker 1>boom at that point in cable television development. But then

0:22:02.800 --> 0:22:05.760
<v Speaker 1>we need to talk a little bit about satellite TV.

0:22:07.000 --> 0:22:10.400
<v Speaker 1>Let's jump back again to nineteen sixty two. So we're

0:22:10.440 --> 0:22:14.960
<v Speaker 1>back in the year where uh communities are are using

0:22:15.760 --> 0:22:20.879
<v Speaker 1>cable to deliver television broadcast to remote locations. The f

0:22:21.000 --> 0:22:24.280
<v Speaker 1>c C is just getting into the game saying, don't

0:22:24.520 --> 0:22:28.240
<v Speaker 1>show stuff that doesn't belong to your region. Keep regions

0:22:28.560 --> 0:22:31.760
<v Speaker 1>separate from each other, because we're getting into these disputes

0:22:31.760 --> 0:22:35.879
<v Speaker 1>that are really a headache to deal with. And around

0:22:35.960 --> 0:22:38.879
<v Speaker 1>this time was when the United States launched the first

0:22:39.000 --> 0:22:43.760
<v Speaker 1>telecommunications satellite. This one was called tell Star. It was

0:22:43.800 --> 0:22:46.280
<v Speaker 1>a Bell Labs project. It was built by a T

0:22:46.400 --> 0:22:48.760
<v Speaker 1>and T and it could receive signals from the ground

0:22:49.280 --> 0:22:52.080
<v Speaker 1>from Europe and send them over across the Atlantic to

0:22:52.119 --> 0:22:55.800
<v Speaker 1>America and vice versa. But it was limited. It could

0:22:55.800 --> 0:22:58.720
<v Speaker 1>only act as a sort of line of sight satellite,

0:22:59.119 --> 0:23:00.680
<v Speaker 1>so that meant that it had to have a clear

0:23:00.720 --> 0:23:04.280
<v Speaker 1>shot both from wherever it was receiving information and wherever

0:23:04.359 --> 0:23:07.800
<v Speaker 1>it was sending information. And from a practical standpoint, that

0:23:07.880 --> 0:23:10.880
<v Speaker 1>meant that the satellite could beam a live television feed

0:23:10.920 --> 0:23:14.879
<v Speaker 1>for about twenty minutes every two and a half hours,

0:23:14.920 --> 0:23:17.480
<v Speaker 1>because that's how long it took it to orbit the Earth.

0:23:18.040 --> 0:23:20.320
<v Speaker 1>So you couldn't watch a full length movie in one

0:23:20.400 --> 0:23:23.879
<v Speaker 1>sitting using this thing. But it was kind of a

0:23:24.000 --> 0:23:28.800
<v Speaker 1>dawn of a new era with this telecommunications approach. Tell

0:23:28.840 --> 0:23:33.280
<v Speaker 1>Stars actual fate was rather unfortunate. The United States and

0:23:33.320 --> 0:23:35.960
<v Speaker 1>the then Soviet Union had been in the habit of

0:23:36.000 --> 0:23:40.520
<v Speaker 1>conducting high altitude atomic weapons tests, and those tests pretty

0:23:40.560 --> 0:23:45.359
<v Speaker 1>much toasted the satellites systems. So it went offline permanently

0:23:45.400 --> 0:23:48.680
<v Speaker 1>on February twenty one, nineteen. Although it was still in orbit,

0:23:48.760 --> 0:23:52.359
<v Speaker 1>it hadn't crashed to the Earth, but the electronics inside

0:23:52.359 --> 0:23:56.600
<v Speaker 1>it were essentially fried, so there was no more TV

0:23:56.760 --> 0:24:00.639
<v Speaker 1>being sent by Telstar one at that point. Now, it

0:24:00.680 --> 0:24:03.080
<v Speaker 1>proved a point, but it wasn't really a replacement for

0:24:03.119 --> 0:24:07.159
<v Speaker 1>broadcaster cable TV. In nineteen seventy six, there was a

0:24:07.240 --> 0:24:11.119
<v Speaker 1>Stanford professor named H. Taylor Howard who built the first

0:24:11.240 --> 0:24:15.119
<v Speaker 1>privately owned satellite receiving system, and he was a pretty

0:24:15.200 --> 0:24:18.280
<v Speaker 1>clever dude. His satellite antenna could pick up the same

0:24:18.359 --> 0:24:21.760
<v Speaker 1>transmissions that cable networks were using to send signals across

0:24:21.800 --> 0:24:27.600
<v Speaker 1>the nation. So while you didn't have individual customers using

0:24:27.600 --> 0:24:30.919
<v Speaker 1>satellite dishes until this point to pick up this stuff,

0:24:31.320 --> 0:24:34.840
<v Speaker 1>cable companies were using it. So what would happen is

0:24:34.880 --> 0:24:38.399
<v Speaker 1>you would have a cable company in one region and

0:24:38.480 --> 0:24:40.840
<v Speaker 1>they would send a signal up to beam up to

0:24:40.880 --> 0:24:43.960
<v Speaker 1>a satellite that would then beam it down to another

0:24:44.680 --> 0:24:48.159
<v Speaker 1>receiving station much further away someplace where you don't have

0:24:48.200 --> 0:24:53.239
<v Speaker 1>physical cables connecting the two areas, right, So might one

0:24:53.320 --> 0:24:55.280
<v Speaker 1>might be in the East coast, one might be in

0:24:55.359 --> 0:24:59.000
<v Speaker 1>the central United States, and the satellite would beam the

0:24:59.040 --> 0:25:01.040
<v Speaker 1>signal down to the center well United States, and they

0:25:01.080 --> 0:25:04.640
<v Speaker 1>would also get the same programming as the folks southeast. Dead.

0:25:05.480 --> 0:25:08.639
<v Speaker 1>This was a way that networks like HBO could distribute

0:25:08.640 --> 0:25:12.080
<v Speaker 1>their content across an entire nation without having a physical

0:25:12.160 --> 0:25:17.000
<v Speaker 1>infrastructure connecting coast to coast, and there was really no

0:25:17.080 --> 0:25:20.000
<v Speaker 1>worry about anyone else tapping into it because I mean,

0:25:20.040 --> 0:25:24.040
<v Speaker 1>if you had a receiver, if you had a satellite receiver,

0:25:24.200 --> 0:25:28.600
<v Speaker 1>as Taylor Howard had because he built his own, then

0:25:28.600 --> 0:25:30.920
<v Speaker 1>you could get all that content for free. You wouldn't

0:25:30.920 --> 0:25:33.560
<v Speaker 1>have to pay a monthly fee to HBO or to

0:25:33.800 --> 0:25:37.919
<v Speaker 1>any provider. You're getting that information just by picking it

0:25:38.000 --> 0:25:40.359
<v Speaker 1>up using an antenna. It was being sent in the

0:25:40.480 --> 0:25:44.160
<v Speaker 1>clear or I t C, meaning there was no encryption

0:25:44.240 --> 0:25:46.880
<v Speaker 1>or scrambling going on. So as long as you had

0:25:46.880 --> 0:25:49.560
<v Speaker 1>an antenna capable of picking up the signals, you could

0:25:49.560 --> 0:25:53.679
<v Speaker 1>actually watch that stuff for free, or at least for

0:25:53.800 --> 0:25:58.000
<v Speaker 1>the cost of actually putting together an antenna. But the

0:25:58.080 --> 0:26:00.919
<v Speaker 1>reason for this was the reason why companies like HBO

0:26:01.000 --> 0:26:04.199
<v Speaker 1>weren't concerned about this was that if you wanted to

0:26:04.200 --> 0:26:07.800
<v Speaker 1>go out and buy a satellite antenna, you'd be spending

0:26:08.480 --> 0:26:13.280
<v Speaker 1>thousands and thousands of dollars tens of thousands of dollars

0:26:13.320 --> 0:26:15.439
<v Speaker 1>to get one of these things, and it was just

0:26:15.520 --> 0:26:18.560
<v Speaker 1>largely considered to be impractical. It was well beyond the

0:26:18.600 --> 0:26:22.040
<v Speaker 1>reach of the average person. So the companies like HBO

0:26:22.119 --> 0:26:24.439
<v Speaker 1>weren't concerned with us. Why would you worry about that.

0:26:24.520 --> 0:26:27.280
<v Speaker 1>No one's going to bother with us until h Taylor

0:26:27.320 --> 0:26:30.560
<v Speaker 1>Howard goes out and builds his own and he even

0:26:30.800 --> 0:26:33.639
<v Speaker 1>I think somewhat cheekily wrote a hundred dollar check and

0:26:33.680 --> 0:26:37.120
<v Speaker 1>sent it to HBO saying, Hey, I've been watching your

0:26:37.119 --> 0:26:41.760
<v Speaker 1>content using my homemade satellite antenna, and I figure, you know,

0:26:42.119 --> 0:26:44.040
<v Speaker 1>I should at least pay you for it, even though

0:26:44.080 --> 0:26:47.640
<v Speaker 1>I don't have a cable subscription. And HBO's response was, hey,

0:26:47.640 --> 0:26:50.040
<v Speaker 1>we can't accept this check. We only deal with big

0:26:50.119 --> 0:26:54.440
<v Speaker 1>networks or big big, you know, cable providers. We don't

0:26:54.920 --> 0:26:59.040
<v Speaker 1>deal with individuals. So then Howard published a how to

0:26:59.160 --> 0:27:03.560
<v Speaker 1>guide how he built his own satellite receiver, and that

0:27:03.680 --> 0:27:07.000
<v Speaker 1>meant that any enterprising home engineer with enough money to

0:27:07.040 --> 0:27:10.080
<v Speaker 1>buy the the basic parts could get to work and

0:27:10.080 --> 0:27:13.879
<v Speaker 1>build their own satellite antenna and therefore receive HBO for

0:27:13.960 --> 0:27:18.399
<v Speaker 1>free or minus the price of building the antenna. The

0:27:18.440 --> 0:27:21.879
<v Speaker 1>satellite TV industry essentially started off that way. People started

0:27:21.920 --> 0:27:26.159
<v Speaker 1>to grab some signals meant for cable customers. But before

0:27:26.320 --> 0:27:31.280
<v Speaker 1>too long two things happened. One, cable companies began to

0:27:31.320 --> 0:27:37.119
<v Speaker 1>scramble their signals so that you would be incentivized, let's say,

0:27:37.560 --> 0:27:41.480
<v Speaker 1>to subscribe to their service to get the ability to

0:27:41.640 --> 0:27:45.439
<v Speaker 1>de scramble that channel and watch the content. And the

0:27:45.440 --> 0:27:51.320
<v Speaker 1>second thing that happened was that the satellite providers were

0:27:51.359 --> 0:27:54.720
<v Speaker 1>beginning to emerge as a competing industry to cable providers.

0:27:55.240 --> 0:27:59.840
<v Speaker 1>So you had the individual cable channels, the people who make,

0:28:00.359 --> 0:28:03.679
<v Speaker 1>or at least who who produced the stuff that you

0:28:03.720 --> 0:28:06.919
<v Speaker 1>want to watch, and then you add the cable providers,

0:28:06.960 --> 0:28:10.119
<v Speaker 1>the people who have or the companies who have the

0:28:10.160 --> 0:28:14.199
<v Speaker 1>infrastructure that delivers that content. This can get really confusing

0:28:14.320 --> 0:28:19.560
<v Speaker 1>because we frequently will refer to cable just as cable,

0:28:19.840 --> 0:28:22.960
<v Speaker 1>and we could either mean the provider or we could

0:28:23.080 --> 0:28:26.200
<v Speaker 1>mean the content creator. And to make it more confusing,

0:28:26.680 --> 0:28:29.600
<v Speaker 1>there are of course companies that are both They are

0:28:29.640 --> 0:28:34.000
<v Speaker 1>both providers and content creators, and that makes things messy.

0:28:34.040 --> 0:28:36.000
<v Speaker 1>It's also one of the reasons why you've got people

0:28:36.080 --> 0:28:40.160
<v Speaker 1>arguing for net neutrality to try and create a separation

0:28:40.560 --> 0:28:44.600
<v Speaker 1>between the content creators and the content providers so that

0:28:45.240 --> 0:28:49.160
<v Speaker 1>you don't see preferential treatment given to one company's own

0:28:49.320 --> 0:28:53.120
<v Speaker 1>products over all the other competitors. But I've already talked

0:28:53.120 --> 0:28:55.120
<v Speaker 1>about net neutrality and other episodes, so we'll leave that

0:28:55.200 --> 0:28:59.680
<v Speaker 1>from for now. Back to satellite TV. Uh, you started

0:28:59.720 --> 0:29:05.120
<v Speaker 1>seeing these companies pop up with their own services, so

0:29:05.200 --> 0:29:07.600
<v Speaker 1>you could, you know, subscribe to them, just as you

0:29:07.640 --> 0:29:11.800
<v Speaker 1>would with cable TV, so dish and direct TV things

0:29:11.880 --> 0:29:15.360
<v Speaker 1>like that, you could subscribe to them and get your

0:29:15.360 --> 0:29:17.520
<v Speaker 1>television that way. And I'll have to do a full

0:29:17.560 --> 0:29:20.680
<v Speaker 1>episode on the satellite TV industry to go into how

0:29:20.720 --> 0:29:24.440
<v Speaker 1>they evolved over time, But to be honest, to get

0:29:24.440 --> 0:29:27.480
<v Speaker 1>into that story here would take up way too much time.

0:29:27.920 --> 0:29:30.640
<v Speaker 1>It really deserves its own episode or pair of episodes.

0:29:30.680 --> 0:29:32.960
<v Speaker 1>So let's just say it had its own challenges in

0:29:33.000 --> 0:29:37.920
<v Speaker 1>those early days. That brings us to television over the Internet.

0:29:38.080 --> 0:29:41.320
<v Speaker 1>While there are many services that deliver video content over

0:29:41.360 --> 0:29:43.640
<v Speaker 1>the Internet that I've been around for a decade or so,

0:29:43.720 --> 0:29:47.320
<v Speaker 1>such as just streaming recorded video live TV over the

0:29:47.360 --> 0:29:51.400
<v Speaker 1>internet that is still relatively young. Now one of those

0:29:51.400 --> 0:29:54.840
<v Speaker 1>services is Sling TV. When we come back, I'll have

0:29:54.880 --> 0:29:58.000
<v Speaker 1>a discussion with Jim Shade Chadar, the VP of Product

0:29:58.040 --> 0:30:01.600
<v Speaker 1>Marketing and Management over at sling t But first, let's

0:30:01.600 --> 0:30:11.440
<v Speaker 1>take a quick break to thank our sponsor and Jim Shade,

0:30:11.440 --> 0:30:14.720
<v Speaker 1>thank you so much for agreeing to be on tech stuff.

0:30:14.760 --> 0:30:18.080
<v Speaker 1>I really appreciate it. I'm very excited to have this conversation.

0:30:18.200 --> 0:30:22.640
<v Speaker 1>So let's say we're doing the classic elevator pitch. You

0:30:22.720 --> 0:30:25.280
<v Speaker 1>get an elevator, there's a person there, you're you're going

0:30:25.360 --> 0:30:28.400
<v Speaker 1>up to the floor, and it's not the express elevator,

0:30:28.440 --> 0:30:30.440
<v Speaker 1>And of course conversation turns to, so what do you

0:30:30.480 --> 0:30:33.040
<v Speaker 1>do for a living? How do you describe to someone

0:30:33.440 --> 0:30:37.360
<v Speaker 1>what Sling TV is all about. Yeah, it's a great question.

0:30:37.360 --> 0:30:42.080
<v Speaker 1>So Sling TV is the leading live OTT streaming service

0:30:42.640 --> 0:30:46.200
<v Speaker 1>in the United States. Think of it as Netflix, but

0:30:46.320 --> 0:30:49.360
<v Speaker 1>for live and on demand TV. All the customers to

0:30:49.480 --> 0:30:52.680
<v Speaker 1>do is download an app to their favorite device and

0:30:52.840 --> 0:30:55.880
<v Speaker 1>they can watch channels like ESPN, A, m C, h G,

0:30:56.000 --> 0:30:59.360
<v Speaker 1>t V, CNN Live on the device of their choice

0:30:59.480 --> 0:31:03.880
<v Speaker 1>over the net. Cool. So it's following a very uh

0:31:04.160 --> 0:31:06.520
<v Speaker 1>proven model at this point. One of the things that

0:31:06.560 --> 0:31:10.520
<v Speaker 1>a lot of people have said about services, specifically Netflix

0:31:10.520 --> 0:31:13.720
<v Speaker 1>in particular, but services light Netflix, is that the thing

0:31:13.760 --> 0:31:17.880
<v Speaker 1>they really nailed was this concept of making sure the

0:31:17.920 --> 0:31:22.280
<v Speaker 1>application was available wherever people wanted a chance to use it,

0:31:22.720 --> 0:31:25.760
<v Speaker 1>and so that it just became kind of ever present

0:31:25.920 --> 0:31:27.800
<v Speaker 1>and you can find it on everything, to the point

0:31:27.800 --> 0:31:31.040
<v Speaker 1>where I wouldn't be surprised if there are refrigerators and

0:31:31.120 --> 0:31:34.320
<v Speaker 1>stoves that have it on them now. So it sounds

0:31:34.400 --> 0:31:37.040
<v Speaker 1>like this is a similar concept, but now we're looking

0:31:37.080 --> 0:31:41.560
<v Speaker 1>at live television, something that previously you you were pretty

0:31:41.640 --> 0:31:44.520
<v Speaker 1>much stuck to either over the air broadcast or cable

0:31:44.600 --> 0:31:47.080
<v Speaker 1>or satellite service, and now you can get it through

0:31:47.400 --> 0:31:51.240
<v Speaker 1>your internet service provider. Is that that more or less correct? Yeah?

0:31:51.240 --> 0:31:53.040
<v Speaker 1>I think the way I would think about it is

0:31:53.240 --> 0:31:55.960
<v Speaker 1>really about choice for our customers. And if you think

0:31:55.960 --> 0:31:58.640
<v Speaker 1>about traditional pay TV, you are always locked into the

0:31:58.640 --> 0:32:02.160
<v Speaker 1>steptop box that came with that PATV provider. And so

0:32:02.200 --> 0:32:04.920
<v Speaker 1>now if you you know, if you prefer Coo over Amazon,

0:32:05.040 --> 0:32:07.600
<v Speaker 1>or if you like Apple TV, we're putting that choice

0:32:07.600 --> 0:32:09.600
<v Speaker 1>back into customer's hands. You can use playing on any

0:32:09.600 --> 0:32:13.160
<v Speaker 1>one of those devices. Excellent. So talk a little bit

0:32:13.400 --> 0:32:17.240
<v Speaker 1>if you can about the process of coming up with

0:32:17.280 --> 0:32:20.200
<v Speaker 1>the idea and rolling it out. What was that like,

0:32:20.400 --> 0:32:25.160
<v Speaker 1>because obviously getting into this field, it's it's their challenges

0:32:25.200 --> 0:32:28.360
<v Speaker 1>that I think the average person has no real knowledge of,

0:32:28.520 --> 0:32:31.600
<v Speaker 1>things like carriage agreements, things of that nature. And I'm

0:32:31.600 --> 0:32:33.760
<v Speaker 1>not asking to get into particulars with any of that,

0:32:33.800 --> 0:32:37.440
<v Speaker 1>but kind of let people know, Like when you're an

0:32:37.440 --> 0:32:40.200
<v Speaker 1>average customer who wants to watch television, your question might

0:32:40.240 --> 0:32:43.800
<v Speaker 1>just be, well, why can't I just get this? You know,

0:32:44.320 --> 0:32:45.720
<v Speaker 1>why why did it take so long for it to

0:32:45.760 --> 0:32:47.560
<v Speaker 1>get to me? And I don't think they understand the

0:32:47.680 --> 0:32:52.120
<v Speaker 1>complications that are that are surrounding such an endeavor. So

0:32:52.120 --> 0:32:54.040
<v Speaker 1>can you talk a little bit about the development both

0:32:54.360 --> 0:32:56.680
<v Speaker 1>maybe from not so much a technological side, we can

0:32:56.680 --> 0:32:59.040
<v Speaker 1>talk about a little bit, but really from the the

0:32:59.080 --> 0:33:02.600
<v Speaker 1>business side, what took to get this in place? Sure,

0:33:02.600 --> 0:33:04.280
<v Speaker 1>I think you bring up a lot of great points.

0:33:04.480 --> 0:33:06.600
<v Speaker 1>Um when you when it comes to kind of content

0:33:06.680 --> 0:33:09.560
<v Speaker 1>rights and digital content rights, they're really complicated and I

0:33:09.560 --> 0:33:14.000
<v Speaker 1>don't think the average consumer definitely appreciate the complexity around them.

0:33:14.000 --> 0:33:20.000
<v Speaker 1>So we started negotiating with our programming partners almost five

0:33:20.120 --> 0:33:23.280
<v Speaker 1>to six years ago, way before we launched the service,

0:33:23.360 --> 0:33:25.600
<v Speaker 1>because we knew that one of the pain points that

0:33:25.640 --> 0:33:27.880
<v Speaker 1>we were trying to address was that customers didn't like

0:33:28.040 --> 0:33:31.440
<v Speaker 1>paying for channels that they weren't watching. And so it

0:33:31.520 --> 0:33:33.680
<v Speaker 1>was very important for us when we launched pling TV

0:33:34.360 --> 0:33:36.240
<v Speaker 1>to make sure that we launched the service to put

0:33:36.240 --> 0:33:38.680
<v Speaker 1>the choice and control back in customers hands and dealt

0:33:38.680 --> 0:33:41.600
<v Speaker 1>with that pain point. And so we spent years basically

0:33:41.600 --> 0:33:44.720
<v Speaker 1>negotiating with these programming partners, and we had the benefit

0:33:44.880 --> 0:33:47.920
<v Speaker 1>of being part of Dish and this has had these

0:33:47.920 --> 0:33:51.560
<v Speaker 1>programming relationships for you know, decades at this point, and

0:33:52.320 --> 0:33:54.480
<v Speaker 1>we really worked with our programming partners to come up

0:33:54.520 --> 0:33:57.880
<v Speaker 1>with a model where we could offer you a smaller

0:33:57.960 --> 0:34:00.560
<v Speaker 1>kind of base pack of channels and let people choose

0:34:01.080 --> 0:34:03.719
<v Speaker 1>different genre packs that they wanted sports or if they

0:34:03.760 --> 0:34:07.120
<v Speaker 1>wanted kids, they could just add those on and still

0:34:07.160 --> 0:34:11.680
<v Speaker 1>have an affordable service and so um, like I said,

0:34:11.680 --> 0:34:14.960
<v Speaker 1>the content rights are pretty complicated. So sometimes you know,

0:34:15.000 --> 0:34:17.040
<v Speaker 1>you're not allowed to watch you know, football on a

0:34:17.120 --> 0:34:19.879
<v Speaker 1>mobile device. It's not something we have control over because

0:34:19.880 --> 0:34:23.719
<v Speaker 1>that's how the NFL negotiative rights with the carriers, or

0:34:23.760 --> 0:34:27.000
<v Speaker 1>you know, some channels aren't available on some services, etcetera.

0:34:27.360 --> 0:34:29.879
<v Speaker 1>And so for us, it was really important to give

0:34:29.960 --> 0:34:32.719
<v Speaker 1>customers a choice of the channels that they wanted, the

0:34:32.800 --> 0:34:34.920
<v Speaker 1>things that we thought were going to be most popular,

0:34:35.200 --> 0:34:36.840
<v Speaker 1>but make sure that they didn't have to pay for

0:34:36.960 --> 0:34:40.239
<v Speaker 1>things that they didn't want or didn't want to watch. Right.

0:34:40.320 --> 0:34:43.920
<v Speaker 1>So this this is kind of that dream of the

0:34:44.080 --> 0:34:47.160
<v Speaker 1>Alakhart approach that a lot of people thought was going

0:34:47.200 --> 0:34:51.560
<v Speaker 1>to be a natural progression once we started seeing the

0:34:51.600 --> 0:34:56.240
<v Speaker 1>possibilities of delivering streaming content over the Internet. But again

0:34:56.360 --> 0:35:01.080
<v Speaker 1>that was largely without the the understand ding of how

0:35:01.200 --> 0:35:04.080
<v Speaker 1>the business side of it works. Once upon a time,

0:35:04.840 --> 0:35:08.880
<v Speaker 1>how stuff works was part of Discovery Communications, and for

0:35:08.920 --> 0:35:12.480
<v Speaker 1>me that was my education and learning more about things

0:35:12.560 --> 0:35:15.400
<v Speaker 1>like carriage agreements and if it's a if it's a

0:35:15.440 --> 0:35:18.480
<v Speaker 1>network of channels, if it's one big channel, there's also

0:35:18.600 --> 0:35:21.360
<v Speaker 1>issues of if you negotiate with them, then you have

0:35:21.400 --> 0:35:24.320
<v Speaker 1>to figure out, well, I can get that channel, but

0:35:24.360 --> 0:35:26.280
<v Speaker 1>I'm going to have to get these other five channels

0:35:26.280 --> 0:35:28.920
<v Speaker 1>on my cable package because it's all part of a

0:35:28.960 --> 0:35:31.880
<v Speaker 1>package deal and Once you see it from that side,

0:35:31.920 --> 0:35:34.319
<v Speaker 1>the backside, you start to get a deeper appreciation of

0:35:34.360 --> 0:35:38.040
<v Speaker 1>how as you say, how complicated this is. And that's

0:35:38.080 --> 0:35:42.719
<v Speaker 1>before you get to the added restrictions of things like, well,

0:35:42.960 --> 0:35:44.879
<v Speaker 1>you can watch this, but it has to be either

0:35:44.960 --> 0:35:48.799
<v Speaker 1>on a television set or maybe on a computer but

0:35:48.880 --> 0:35:51.719
<v Speaker 1>not on a mobile device. Or it maybe yes, you

0:35:51.760 --> 0:35:55.440
<v Speaker 1>can have this, but some of the capabilities of your app,

0:35:55.560 --> 0:35:58.680
<v Speaker 1>maybe you were able to do things like pause live

0:35:58.760 --> 0:36:01.640
<v Speaker 1>TV or rewind a little bit. They might work with

0:36:02.000 --> 0:36:04.800
<v Speaker 1>the or the agreements might allow for that for certain

0:36:04.880 --> 0:36:07.560
<v Speaker 1>channels but not for others. And once you see how

0:36:07.600 --> 0:36:11.080
<v Speaker 1>complicated this is, you really get that appreciation of Okay,

0:36:11.120 --> 0:36:14.080
<v Speaker 1>now I understand even though the technology existed, it still

0:36:14.120 --> 0:36:18.200
<v Speaker 1>took years of development to get it all uh rolled out.

0:36:18.280 --> 0:36:20.440
<v Speaker 1>And as I understand it, when it first when it

0:36:20.480 --> 0:36:24.000
<v Speaker 1>first rolled out, there were essentially two broad categories that

0:36:24.080 --> 0:36:27.120
<v Speaker 1>you could take blue and orange, and that was sort

0:36:27.160 --> 0:36:29.400
<v Speaker 1>of the base packages, and you could also choose to

0:36:29.440 --> 0:36:32.799
<v Speaker 1>combine the two. Is that correct? Yeah, So, so from

0:36:32.800 --> 0:36:37.160
<v Speaker 1>a services standpoint, we offered you know, Spling Orange and

0:36:37.280 --> 0:36:39.960
<v Speaker 1>we offered Spling Blue, and they had some of the

0:36:40.040 --> 0:36:42.280
<v Speaker 1>channels were the same between them, some of them are different.

0:36:42.400 --> 0:36:46.040
<v Speaker 1>One had ESPN and the other ones had NBC and

0:36:46.280 --> 0:36:50.160
<v Speaker 1>Fox channels. And now we also offered you know, international

0:36:50.640 --> 0:36:54.520
<v Speaker 1>language group choices and Latino choices. So Orange and Blue

0:36:55.040 --> 0:36:58.520
<v Speaker 1>are the kind of the base domestic packs for you know,

0:36:58.560 --> 0:37:01.200
<v Speaker 1>English speaking, and then we the Latino packs. And we

0:37:01.239 --> 0:37:04.720
<v Speaker 1>also have a bunch of content in different language groups

0:37:04.840 --> 0:37:09.839
<v Speaker 1>from Arabic, the Chinese to Polish, et cetera. So in

0:37:10.360 --> 0:37:12.640
<v Speaker 1>I am sure that in your career you've already seen

0:37:12.880 --> 0:37:16.360
<v Speaker 1>how the industry, how how really the delivery of content

0:37:16.440 --> 0:37:18.919
<v Speaker 1>has changed dramatically. It's something that I like to talk

0:37:18.960 --> 0:37:22.719
<v Speaker 1>about a lot on my show from the era of broadcast,

0:37:22.800 --> 0:37:26.200
<v Speaker 1>over the year two era of cable and then also

0:37:26.280 --> 0:37:30.360
<v Speaker 1>cable and satellite, And would you say that it's you know,

0:37:30.480 --> 0:37:32.920
<v Speaker 1>is it fair to say that the Internet delivery is

0:37:33.000 --> 0:37:35.279
<v Speaker 1>kind of like that next era, that next step in

0:37:35.320 --> 0:37:39.719
<v Speaker 1>evolution in the way we get content from UH, from

0:37:39.800 --> 0:37:44.680
<v Speaker 1>major creators and channeled through to two audiences. I definitely

0:37:44.680 --> 0:37:47.879
<v Speaker 1>think it's it's an uh an evolutionary past. I think

0:37:47.920 --> 0:37:49.759
<v Speaker 1>the one thing to keep in mind was that the

0:37:49.760 --> 0:37:53.160
<v Speaker 1>the Internet's original purpose is not to deliver video, and

0:37:53.239 --> 0:37:55.759
<v Speaker 1>so although it is a natural kind of evolution. It

0:37:55.880 --> 0:37:58.840
<v Speaker 1>is also a challenge to deliver live TV over the

0:37:58.880 --> 0:38:01.120
<v Speaker 1>Internet where you know, we don't own the I s P.

0:38:01.320 --> 0:38:03.320
<v Speaker 1>We don't own the end device that a customer has,

0:38:04.080 --> 0:38:05.640
<v Speaker 1>right and then of course there are all the other

0:38:05.680 --> 0:38:09.960
<v Speaker 1>issues things like you you can't really guarantee that uh,

0:38:10.000 --> 0:38:12.359
<v Speaker 1>that the bit rate is going to be the at

0:38:12.440 --> 0:38:13.920
<v Speaker 1>a at a level where you're going to get the

0:38:14.000 --> 0:38:18.040
<v Speaker 1>quality that the home viewer expects, and that's completely outside

0:38:18.040 --> 0:38:20.960
<v Speaker 1>of your control. It's not like it's, you know something

0:38:21.040 --> 0:38:24.359
<v Speaker 1>where sling TV just says, all right, well, I know

0:38:24.440 --> 0:38:26.520
<v Speaker 1>you wanted to watch this program, but I'm gonna throttle it.

0:38:26.520 --> 0:38:29.200
<v Speaker 1>It's not that it's it's all these other elements that

0:38:29.200 --> 0:38:31.719
<v Speaker 1>are outside of that. But the flip side of that,

0:38:31.800 --> 0:38:34.440
<v Speaker 1>of course is the convenience on the consumer side, the

0:38:34.480 --> 0:38:38.520
<v Speaker 1>fact that you have these different options of ways to

0:38:38.800 --> 0:38:41.400
<v Speaker 1>access the content. And I find I find that the

0:38:41.480 --> 0:38:45.239
<v Speaker 1>really compelling thing. What's the deployment like so far for

0:38:45.320 --> 0:38:47.799
<v Speaker 1>Sling TV about I don't know how much you can

0:38:47.840 --> 0:38:51.080
<v Speaker 1>talk about your your install base, but I was kind

0:38:51.080 --> 0:38:54.520
<v Speaker 1>of curious to hear what adoption has been like. Yes,

0:38:54.600 --> 0:38:57.520
<v Speaker 1>so unfortunately can give you specific numbers about our installed base,

0:38:57.640 --> 0:39:01.200
<v Speaker 1>but you know, we are the leading last streaming offering

0:39:01.200 --> 0:39:04.719
<v Speaker 1>out out there today. I think, you know, for us,

0:39:05.040 --> 0:39:08.200
<v Speaker 1>we've seen kind of broad adoption across the different devices

0:39:08.239 --> 0:39:11.120
<v Speaker 1>were on. We've realized there's kind of this rule of

0:39:11.200 --> 0:39:13.919
<v Speaker 1>people gravitate towards the largest screen that's in front of them.

0:39:14.320 --> 0:39:15.960
<v Speaker 1>So if they're at home, you know, they were going

0:39:16.000 --> 0:39:18.520
<v Speaker 1>to watch on their TV. If they're you know, on

0:39:18.560 --> 0:39:21.319
<v Speaker 1>a subway somewhere, if they're traveling and the phone is

0:39:21.320 --> 0:39:23.239
<v Speaker 1>the only screen in front of them, you know, we

0:39:23.280 --> 0:39:25.520
<v Speaker 1>see a lot of usage on the phone because that's

0:39:25.520 --> 0:39:27.719
<v Speaker 1>the biggest screen they have in front of them. We've

0:39:27.719 --> 0:39:30.640
<v Speaker 1>seen a lot of engagement from our customers. Um you know,

0:39:30.680 --> 0:39:32.880
<v Speaker 1>if you look if we go back to two thousand,

0:39:32.920 --> 0:39:38.719
<v Speaker 1>sixteen seventeen, I think we saw increase on a per

0:39:38.800 --> 0:39:42.040
<v Speaker 1>user basis and the time within app. So, you know,

0:39:42.400 --> 0:39:45.359
<v Speaker 1>I think if you think about splaying as a cord

0:39:45.400 --> 0:39:49.440
<v Speaker 1>cutting or live streaming solution, I think people were experimenting,

0:39:49.480 --> 0:39:51.399
<v Speaker 1>they were trying our service, and then at once they

0:39:51.440 --> 0:39:55.160
<v Speaker 1>tried it, they recognized the choice and the convenience and

0:39:55.200 --> 0:39:57.520
<v Speaker 1>the control that we give them, they started engaging more

0:39:57.520 --> 0:39:59.600
<v Speaker 1>with the platform. And realizing that they could really meet

0:39:59.640 --> 0:40:02.680
<v Speaker 1>their injury him and needs, which plink TV. So this

0:40:02.800 --> 0:40:06.320
<v Speaker 1>is also one of those offerings that might appeal to

0:40:06.440 --> 0:40:09.359
<v Speaker 1>the so called cord never's the people who have never

0:40:09.440 --> 0:40:13.359
<v Speaker 1>really subscribed to to cable at all, but now they

0:40:13.360 --> 0:40:16.680
<v Speaker 1>could get that same sort of access to content only

0:40:16.880 --> 0:40:19.359
<v Speaker 1>over the Internet, which is that's you know, that's kind

0:40:19.360 --> 0:40:22.759
<v Speaker 1>of the the access point they've become used to with

0:40:22.920 --> 0:40:25.960
<v Speaker 1>other services. So I see this as really catering to

0:40:26.120 --> 0:40:29.080
<v Speaker 1>that group as well, a group that otherwise seems to

0:40:29.120 --> 0:40:34.320
<v Speaker 1>be unreachable through traditional means of getting you know, getting

0:40:34.360 --> 0:40:38.080
<v Speaker 1>content to audiences. So it's it's fascinating to me there

0:40:38.080 --> 0:40:40.160
<v Speaker 1>as well. It was one of those stories where again

0:40:40.520 --> 0:40:42.880
<v Speaker 1>coming from a world where at one point I was

0:40:42.960 --> 0:40:46.920
<v Speaker 1>part of a company that in part owned a large

0:40:47.000 --> 0:40:51.880
<v Speaker 1>cable network and seeing the conversations going on there about

0:40:52.160 --> 0:40:54.719
<v Speaker 1>concerns of how to reach audiences. To me, this is

0:40:55.600 --> 0:40:59.440
<v Speaker 1>a potential solution in that it is a different avenue.

0:40:59.480 --> 0:41:02.480
<v Speaker 1>It's one that doesn't depend upon uh services that a

0:41:02.560 --> 0:41:06.000
<v Speaker 1>lot of people just view as as being like you say,

0:41:06.080 --> 0:41:09.319
<v Speaker 1>like like including offerings that you don't have any interest in,

0:41:09.400 --> 0:41:11.480
<v Speaker 1>you know, why why do I want to subscribe to

0:41:12.120 --> 0:41:16.360
<v Speaker 1>a one fifty channel cable package if I'm only watching

0:41:16.840 --> 0:41:20.200
<v Speaker 1>a dozen or so of those channels. And this seems

0:41:20.239 --> 0:41:23.719
<v Speaker 1>to be uh much closer to that Alakhart future that

0:41:23.760 --> 0:41:26.080
<v Speaker 1>a lot of people wanted. What do you see in

0:41:26.120 --> 0:41:30.000
<v Speaker 1>the future, What has you excited over at Sling TV? So,

0:41:30.040 --> 0:41:33.080
<v Speaker 1>I think, uh, when we look kind of to the future,

0:41:33.520 --> 0:41:35.680
<v Speaker 1>there's a couple of couple of areas that we're focused

0:41:35.680 --> 0:41:39.880
<v Speaker 1>on that I think are exciting. Probably not the sexist

0:41:40.440 --> 0:41:42.759
<v Speaker 1>areas to think about, but I think so us we

0:41:42.920 --> 0:41:46.839
<v Speaker 1>think about two main focus areas. One is just course stability.

0:41:47.320 --> 0:41:49.560
<v Speaker 1>Like I said, not the sexist area. But if you

0:41:49.600 --> 0:41:52.360
<v Speaker 1>think about people and the experience have had with traditional

0:41:52.480 --> 0:41:55.840
<v Speaker 1>pay TV, not like the customer service or the fees

0:41:55.880 --> 0:41:57.880
<v Speaker 1>that pay, et cetera. But they know that when they

0:41:57.880 --> 0:42:01.440
<v Speaker 1>tune to a channel, it's gonna play. And that expectation,

0:42:01.520 --> 0:42:04.319
<v Speaker 1>whether your cord never and you've been using Netflix and

0:42:04.400 --> 0:42:08.279
<v Speaker 1>Hulu or your cord cutter, you have that expectation that

0:42:08.400 --> 0:42:11.160
<v Speaker 1>your experience, your entertainment experience, is gonna be reliable. That

0:42:11.800 --> 0:42:13.560
<v Speaker 1>you click on something, it's gonna play. You're not going

0:42:13.600 --> 0:42:16.880
<v Speaker 1>to see a buffering wheel, and you know we were

0:42:16.920 --> 0:42:19.200
<v Speaker 1>serving customers on a daily basis when they're using it,

0:42:19.239 --> 0:42:21.440
<v Speaker 1>and we know when there's marquee events, you know, we

0:42:21.520 --> 0:42:23.640
<v Speaker 1>bring in a ton of customers just to watch those events,

0:42:23.640 --> 0:42:25.440
<v Speaker 1>and it's critical for us to make sure that the

0:42:25.480 --> 0:42:29.399
<v Speaker 1>service delivers the experience that they want. We talked about

0:42:29.440 --> 0:42:33.400
<v Speaker 1>earlier delivering live TV over the Internet is not a

0:42:33.440 --> 0:42:36.080
<v Speaker 1>simple task and a lot of people are trying it,

0:42:36.120 --> 0:42:37.560
<v Speaker 1>and I think what we've learned over the last three

0:42:37.640 --> 0:42:41.960
<v Speaker 1>years is that stability is really important um for customers

0:42:42.000 --> 0:42:44.640
<v Speaker 1>to not only jump off to the service, but to

0:42:44.680 --> 0:42:47.240
<v Speaker 1>stay with the service. And then I think the second

0:42:47.320 --> 0:42:50.160
<v Speaker 1>area is really around contum discovery. We give a lot

0:42:50.239 --> 0:42:53.520
<v Speaker 1>of choice and control to customers. They can mix and

0:42:53.600 --> 0:42:56.280
<v Speaker 1>match the channels they want to create their own entertainment experience,

0:42:56.840 --> 0:42:59.920
<v Speaker 1>but we gotta make we're making sure that TV is

0:43:00.040 --> 0:43:02.920
<v Speaker 1>simple for them. Um. You know, that's a pretty fragmented

0:43:02.920 --> 0:43:05.920
<v Speaker 1>experience out there if you're in consumer or customer and

0:43:05.920 --> 0:43:08.400
<v Speaker 1>you're thinking about all the different places you can go

0:43:08.480 --> 0:43:10.880
<v Speaker 1>to watch TV. And one of our focus areas for

0:43:10.880 --> 0:43:13.120
<v Speaker 1>two thousand eighteen is how do we make it simple?

0:43:13.160 --> 0:43:15.799
<v Speaker 1>How do we aggregate that content that customers want, whether

0:43:15.840 --> 0:43:20.040
<v Speaker 1>it's core channels, it's premiums like HBO and Stars, or

0:43:20.080 --> 0:43:23.520
<v Speaker 1>it's even over their local channels. How can we produce

0:43:23.640 --> 0:43:27.560
<v Speaker 1>kind of a single interface and make it simple for customers? Again, Yeah,

0:43:27.600 --> 0:43:30.320
<v Speaker 1>I've I've talked on this show before about how user

0:43:30.400 --> 0:43:35.919
<v Speaker 1>interface design is uh a fascinating area and it's it's

0:43:36.040 --> 0:43:40.960
<v Speaker 1>so much more challenging than you might actually think, you know,

0:43:41.000 --> 0:43:44.080
<v Speaker 1>on on just casual glance. And the example I always

0:43:44.120 --> 0:43:47.360
<v Speaker 1>give people is, I say, think of all the times

0:43:47.400 --> 0:43:51.160
<v Speaker 1>you've heard of a product or service that sounded really compelling,

0:43:51.200 --> 0:43:53.320
<v Speaker 1>but then when you've got a chance to use it,

0:43:53.320 --> 0:43:57.760
<v Speaker 1>it was so so difficult to access for whatever reason

0:43:58.120 --> 0:44:01.440
<v Speaker 1>that you walked away from it. Creating that that magic

0:44:01.560 --> 0:44:05.919
<v Speaker 1>user interface that just invites engagement is that's that's something

0:44:05.920 --> 0:44:08.279
<v Speaker 1>that a lot of different companies have really, you know,

0:44:08.320 --> 0:44:12.360
<v Speaker 1>struggled with and and experimented with. And obviously it's always

0:44:12.400 --> 0:44:16.120
<v Speaker 1>evolving and changing, especially as the product itself evolves. So

0:44:16.239 --> 0:44:18.400
<v Speaker 1>I wish you guys the best on that because I

0:44:18.440 --> 0:44:20.600
<v Speaker 1>know it's a challenging endeavor, but I'm also excited to

0:44:20.600 --> 0:44:24.680
<v Speaker 1>see how it turns out. So I have to ask you, now,

0:44:24.920 --> 0:44:28.200
<v Speaker 1>this is the big, important gotcha question of the interview,

0:44:28.360 --> 0:44:32.680
<v Speaker 1>What's what's your favorite show? It's interesting, I think right

0:44:32.680 --> 0:44:40.160
<v Speaker 1>now I would have to gravitate towards this is us No. Nice, nice, Okay, alright,

0:44:40.840 --> 0:44:46.120
<v Speaker 1>you pass. Acceptable, fantastic. I have to thank you again

0:44:46.239 --> 0:44:48.480
<v Speaker 1>for being on the show talking a little bit about

0:44:48.520 --> 0:44:51.680
<v Speaker 1>this service. I'm really fascinating to take a deeper dive

0:44:51.800 --> 0:44:55.200
<v Speaker 1>into it. And and again, uh, it's nice to get

0:44:55.200 --> 0:45:00.000
<v Speaker 1>that perspective and that understanding of you know, the technology

0:45:00.000 --> 0:45:02.399
<v Speaker 1>side of it is always complicated, but that's something that's

0:45:02.440 --> 0:45:05.000
<v Speaker 1>easier to solve if you just stick with it. It's

0:45:05.040 --> 0:45:10.239
<v Speaker 1>the business side that's that's like a a super intricate

0:45:10.320 --> 0:45:13.040
<v Speaker 1>web that you have to unravel gently in order for

0:45:13.080 --> 0:45:15.480
<v Speaker 1>this to work. So I greatly appreciate you taking the

0:45:15.520 --> 0:45:18.880
<v Speaker 1>time to talk with my listeners. And uh, I'll you know,

0:45:18.640 --> 0:45:20.960
<v Speaker 1>you're free to come on the show whenever you want.

0:45:20.960 --> 0:45:23.520
<v Speaker 1>We can chat about what's good on TV. Yeah, all right,

0:45:23.680 --> 0:45:27.040
<v Speaker 1>thank you appreciate having me on board. Big thanks to

0:45:27.160 --> 0:45:30.799
<v Speaker 1>Sling TV for joining me to talk on this episode.

0:45:31.000 --> 0:45:33.040
<v Speaker 1>When we come back, I'm gonna talk a little bit

0:45:33.040 --> 0:45:36.480
<v Speaker 1>more about carriage deals and some of the other challenges

0:45:36.600 --> 0:45:40.160
<v Speaker 1>that we see with the way we get television today.

0:45:40.200 --> 0:45:43.640
<v Speaker 1>But first let's take another quick break to thank our sponsor.

0:45:50.080 --> 0:45:52.680
<v Speaker 1>All right, guys, Sling TV is one of many services

0:45:52.719 --> 0:45:56.360
<v Speaker 1>that are competing in the live TV over the Internet space.

0:45:56.920 --> 0:46:00.640
<v Speaker 1>There are competitors like direct TV now, there's YouTube TV,

0:46:00.880 --> 0:46:04.600
<v Speaker 1>there's PlayStation View, there's Hulu with live TV, and these

0:46:04.600 --> 0:46:08.359
<v Speaker 1>services all seek to appeal to cord cutters and coordinators

0:46:08.400 --> 0:46:11.960
<v Speaker 1>alike by offering up options to get television programming over

0:46:12.000 --> 0:46:14.080
<v Speaker 1>the Internet and again to try and get to that

0:46:14.239 --> 0:46:19.160
<v Speaker 1>a lakhart approach. Now, I mentioned in the interview that

0:46:19.680 --> 0:46:22.240
<v Speaker 1>one of the big challenges out there, and in fact

0:46:22.480 --> 0:46:25.160
<v Speaker 1>this was what they were talking about two, is just

0:46:25.239 --> 0:46:27.560
<v Speaker 1>the agreements that need to be in place in order

0:46:27.640 --> 0:46:31.759
<v Speaker 1>to carry content over a service. As it turns out,

0:46:31.800 --> 0:46:37.120
<v Speaker 1>this is a really tricky, tricky situation. It's it's challenging

0:46:37.280 --> 0:46:41.520
<v Speaker 1>and it has been for decades. And the reason for

0:46:41.560 --> 0:46:47.800
<v Speaker 1>that is this agreement called carriage. Right, these carriage deals,

0:46:48.560 --> 0:46:55.240
<v Speaker 1>this refers to a content provider or rather a signal provider,

0:46:55.280 --> 0:46:59.120
<v Speaker 1>if you will, to carry certain types of content and

0:46:59.280 --> 0:47:01.800
<v Speaker 1>what they have to hey in order to get access

0:47:01.840 --> 0:47:06.120
<v Speaker 1>to it. So let's separate them out by the creators

0:47:06.120 --> 0:47:10.600
<v Speaker 1>and the providers the service providers, the creators, the content creators,

0:47:10.680 --> 0:47:13.000
<v Speaker 1>or at least the people who are companies that own

0:47:13.440 --> 0:47:16.560
<v Speaker 1>this content, whether they made it or they contracted to

0:47:16.560 --> 0:47:20.160
<v Speaker 1>have it made for them or whatever. They've got the

0:47:20.160 --> 0:47:24.800
<v Speaker 1>stuff people want to watch. The providers have the connections

0:47:24.880 --> 0:47:30.640
<v Speaker 1>that can get stuff to customers, because generally speaking, the

0:47:30.840 --> 0:47:34.200
<v Speaker 1>creators don't have a direct line to their audience, they

0:47:34.239 --> 0:47:41.640
<v Speaker 1>rely upon providers. The providers traditionally have to pay to

0:47:41.920 --> 0:47:46.640
<v Speaker 1>be able to carry content to their customers. The customers

0:47:46.640 --> 0:47:50.200
<v Speaker 1>pay a subscription to the providers so that the providers

0:47:50.360 --> 0:47:53.480
<v Speaker 1>will give them the stuff they want. So I'm a customer.

0:47:54.280 --> 0:47:57.040
<v Speaker 1>Let's say that I am a customer of Cable Company A,

0:47:58.200 --> 0:48:01.400
<v Speaker 1>and I pay a certain amount per month to Cable

0:48:01.440 --> 0:48:05.880
<v Speaker 1>Company A to get a bundle of channels. It's the

0:48:05.880 --> 0:48:10.960
<v Speaker 1>basic bundle. I'm going bare bones local channels and small

0:48:11.000 --> 0:48:14.760
<v Speaker 1>collection of cable shows or cable channels. I should say.

0:48:15.360 --> 0:48:18.239
<v Speaker 1>Cable Company A takes my subscription money and all the

0:48:18.280 --> 0:48:22.000
<v Speaker 1>other subscription money that's part of their revenue. They also

0:48:22.080 --> 0:48:24.480
<v Speaker 1>look at their costs, and part of their costs is

0:48:24.520 --> 0:48:29.239
<v Speaker 1>the carriage deals that they have struck with various cable networks,

0:48:29.640 --> 0:48:36.279
<v Speaker 1>and cable networks will end up negotiating a fee for

0:48:37.360 --> 0:48:41.520
<v Speaker 1>a per subscriber basis. Typically, and this has caused some

0:48:41.600 --> 0:48:47.520
<v Speaker 1>big problems in the past, but sometimes they will negotiate

0:48:47.600 --> 0:48:50.520
<v Speaker 1>not to have a higher fee, but rather for the

0:48:50.680 --> 0:48:56.600
<v Speaker 1>cable provider to carry additional channels, secondary channels that perhaps

0:48:56.640 --> 0:48:59.799
<v Speaker 1>the cable provider otherwise would not carry, and this ends

0:48:59.840 --> 0:49:03.200
<v Speaker 1>up creating more of an audience for those secondary channels.

0:49:03.840 --> 0:49:08.120
<v Speaker 1>So I talked in the interview about how how stuff

0:49:08.120 --> 0:49:12.400
<v Speaker 1>works was once part of Discovery Communications. We Discovery Communications

0:49:12.440 --> 0:49:16.920
<v Speaker 1>has several different cable channels under its umbrella. You've got

0:49:16.960 --> 0:49:19.200
<v Speaker 1>the Discovery Channel, you have the Science Channel, you have

0:49:19.280 --> 0:49:22.880
<v Speaker 1>t l C, you have other channels. And typically a

0:49:23.640 --> 0:49:27.040
<v Speaker 1>company like Discovery Communications would go into a carriage deal

0:49:27.080 --> 0:49:31.160
<v Speaker 1>discussion and say, yes, we know you want Discovery Channel.

0:49:31.880 --> 0:49:34.600
<v Speaker 1>We realize that that is a valuable property to you,

0:49:35.200 --> 0:49:39.040
<v Speaker 1>and we have agreed upon what the cost should be

0:49:39.120 --> 0:49:42.080
<v Speaker 1>for you to get access to our content to send

0:49:42.080 --> 0:49:45.080
<v Speaker 1>to your subscribers. If you're going to do that, you

0:49:45.200 --> 0:49:48.279
<v Speaker 1>also have to take the Science Channel and TLC as

0:49:48.280 --> 0:49:52.200
<v Speaker 1>part of the deal, and then your subscribers are going

0:49:52.239 --> 0:49:55.600
<v Speaker 1>to also have access to those channels. So what it

0:49:55.640 --> 0:49:58.359
<v Speaker 1>means is that a big channel that's got a lot

0:49:58.440 --> 0:50:01.080
<v Speaker 1>of viewers, if they've decided they want to invest in

0:50:01.080 --> 0:50:05.839
<v Speaker 1>a smaller channel and perhaps grow that business, then they

0:50:05.840 --> 0:50:09.920
<v Speaker 1>can use their leverage to have a cable provider include

0:50:09.960 --> 0:50:13.359
<v Speaker 1>that channel with their service. Why would you get into

0:50:13.360 --> 0:50:19.360
<v Speaker 1>a smaller channel, Well, here's why publicly traded companies depend

0:50:19.400 --> 0:50:24.279
<v Speaker 1>upon growth. Growth is kin to success, right, that is,

0:50:25.280 --> 0:50:28.400
<v Speaker 1>that's how we measure success with publicly traded companies. Typically,

0:50:28.440 --> 0:50:30.239
<v Speaker 1>it's not just how much profit did you make, it's

0:50:30.239 --> 0:50:33.239
<v Speaker 1>how much did you grow year over year? Not not

0:50:33.360 --> 0:50:34.960
<v Speaker 1>just how much did you make this year, but how

0:50:35.000 --> 0:50:37.040
<v Speaker 1>much more did you make this year from last year.

0:50:38.080 --> 0:50:41.960
<v Speaker 1>Eventually you're going to reach a saturation point with your channel.

0:50:42.600 --> 0:50:45.560
<v Speaker 1>You're you're gonna hit about as many people as you're

0:50:45.640 --> 0:50:48.799
<v Speaker 1>ever going to get. Your channel is not likely to

0:50:48.840 --> 0:50:52.319
<v Speaker 1>grow much beyond that. It may mean that you've hit

0:50:52.480 --> 0:50:56.759
<v Speaker 1>essentially everybody's television already, so there's nowhere else to grow. Well,

0:50:56.760 --> 0:50:59.960
<v Speaker 1>if you can't grow with your primary channel, the next

0:51:00.080 --> 0:51:02.360
<v Speaker 1>best thing to do is to create a secondary channel

0:51:02.640 --> 0:51:05.399
<v Speaker 1>that can then grow, and as a result, the entire

0:51:05.440 --> 0:51:09.040
<v Speaker 1>company benefits because while your main channel can no longer

0:51:09.120 --> 0:51:12.320
<v Speaker 1>really add viewers just because you've you've hit that saturation point.

0:51:12.520 --> 0:51:14.920
<v Speaker 1>Your secondary channel has just started off. The sky is

0:51:14.960 --> 0:51:18.600
<v Speaker 1>the limit. You can grow your your audience by leaps

0:51:18.600 --> 0:51:22.320
<v Speaker 1>and bounds year over year. And remember in the early days,

0:51:22.880 --> 0:51:27.440
<v Speaker 1>if you have a small audience and you double it, well,

0:51:28.000 --> 0:51:30.759
<v Speaker 1>it's not impressive if you're looking at raw numbers, but

0:51:30.840 --> 0:51:35.440
<v Speaker 1>from a percentage basis, it's incredibly impressive. If I say, oh,

0:51:35.520 --> 0:51:38.799
<v Speaker 1>we went from viewers to five viewers, that's not a

0:51:38.800 --> 0:51:40.759
<v Speaker 1>big deal. But if I say, oh, we increased our

0:51:40.800 --> 0:51:46.000
<v Speaker 1>viewership by then everyone's suddenly thinking, wow, that's amazing. So

0:51:47.280 --> 0:51:50.280
<v Speaker 1>that is kind of the thought process that goes behind

0:51:50.320 --> 0:51:53.680
<v Speaker 1>this bundling approach. It's also one of the reasons why

0:51:53.800 --> 0:51:56.400
<v Speaker 1>when you subscribe to cable, even if you're getting a

0:51:56.400 --> 0:52:01.600
<v Speaker 1>basic cable package, you may find yourself with access to

0:52:01.680 --> 0:52:04.040
<v Speaker 1>channels that you really didn't have any interest in. And

0:52:04.080 --> 0:52:07.880
<v Speaker 1>it's not that the cable company the provider necessarily thinks

0:52:07.920 --> 0:52:09.840
<v Speaker 1>that you're going to have interest in all those channels,

0:52:10.280 --> 0:52:14.440
<v Speaker 1>but rather that the big names in the game own

0:52:15.040 --> 0:52:19.840
<v Speaker 1>those channels. Right those are all secondary or subsidiary channels

0:52:19.880 --> 0:52:23.680
<v Speaker 1>of this bigger channel, and part of the agreement for

0:52:23.760 --> 0:52:27.600
<v Speaker 1>the provider to be able to carry that primary channel,

0:52:27.600 --> 0:52:30.200
<v Speaker 1>that big one that everybody wants, is that they have

0:52:30.280 --> 0:52:34.960
<v Speaker 1>to carry all those smaller ones. Now. Sadly, what this

0:52:35.000 --> 0:52:38.000
<v Speaker 1>means from a consumer standpoint is that we get this

0:52:38.200 --> 0:52:43.680
<v Speaker 1>feeling that we are completely inundated by channels we just

0:52:43.719 --> 0:52:46.839
<v Speaker 1>don't care about, and we end up looking at our

0:52:46.840 --> 0:52:50.120
<v Speaker 1>cable bill and our cable bill gets higher and higher. Right,

0:52:50.200 --> 0:52:54.000
<v Speaker 1>those cable prices are pretty expensive, even for basic channels.

0:52:54.040 --> 0:52:56.080
<v Speaker 1>They tend to be pretty expensive if you're going through

0:52:56.800 --> 0:53:02.320
<v Speaker 1>traditional cable service, and the implication is, I am paying,

0:53:03.320 --> 0:53:06.400
<v Speaker 1>you know, more than a hundred dollars a month, let's say,

0:53:06.520 --> 0:53:10.839
<v Speaker 1>for four channels I want and fifty channels I don't

0:53:10.880 --> 0:53:15.080
<v Speaker 1>care about, or more, depending upon what your basic cable

0:53:15.120 --> 0:53:19.400
<v Speaker 1>package happens to be. And that's very frustrating. And in

0:53:19.440 --> 0:53:21.439
<v Speaker 1>our minds, we're thinking, Hey, if I could just cut

0:53:21.480 --> 0:53:23.960
<v Speaker 1>that down to those four channels, think of how much

0:53:24.000 --> 0:53:26.520
<v Speaker 1>more money I would save. Plus I wouldn't be so

0:53:26.600 --> 0:53:29.080
<v Speaker 1>irritated that I've got all this useless stuff on my

0:53:29.120 --> 0:53:32.160
<v Speaker 1>TV that I don't care about. But that's not the

0:53:32.200 --> 0:53:36.640
<v Speaker 1>way the industry works because You've got these these big

0:53:36.680 --> 0:53:40.000
<v Speaker 1>companies that own multiple channels, and they all are pushing

0:53:40.040 --> 0:53:44.320
<v Speaker 1>to have those channels included in these carriage deals. Meanwhile,

0:53:44.600 --> 0:53:48.200
<v Speaker 1>you can get into these disputes where a company can

0:53:48.400 --> 0:53:52.760
<v Speaker 1>ask for more money per subscriber than the cable provider

0:53:53.000 --> 0:53:55.759
<v Speaker 1>was willing to give. There was a big one in

0:53:55.800 --> 0:53:58.920
<v Speaker 1>two thousand nine. There was a dispute between Fox and

0:53:59.160 --> 0:54:03.520
<v Speaker 1>Time Warner Cable. And from what I recall, Fox wanted

0:54:03.560 --> 0:54:08.000
<v Speaker 1>to get a monthly fee of around a dollar per subscriber.

0:54:08.000 --> 0:54:11.200
<v Speaker 1>For Time Warner Cable to say, all right, Time Warner Cable,

0:54:11.440 --> 0:54:14.680
<v Speaker 1>you want to carry the Fox network on your service.

0:54:15.880 --> 0:54:19.240
<v Speaker 1>We want a dollar per subscriber to Time Warner Cable

0:54:19.320 --> 0:54:22.360
<v Speaker 1>in return, and then we'll make this deal. Time Warner

0:54:22.400 --> 0:54:25.239
<v Speaker 1>Cable said, whoa, that's kind of steep. We were thinking

0:54:25.320 --> 0:54:30.440
<v Speaker 1>more like twenty cents per subscriber, so maybe one fifth

0:54:30.680 --> 0:54:33.920
<v Speaker 1>of what you're asking for. Neither party really wanted to

0:54:33.960 --> 0:54:38.160
<v Speaker 1>budge on this, and they didn't just try to settle

0:54:38.239 --> 0:54:41.680
<v Speaker 1>this negotiations. They actually took it to the public. There

0:54:41.719 --> 0:54:45.279
<v Speaker 1>were pr campaigns both from Time Warner Cable and from

0:54:45.320 --> 0:54:51.200
<v Speaker 1>Fox that were aimed at Time Warner Cable customers. The

0:54:51.320 --> 0:54:55.640
<v Speaker 1>Fox was saying, Hey, Time Warner Cable customers, t WC

0:54:55.920 --> 0:54:59.320
<v Speaker 1>doesn't want you to see our shows. So if you

0:54:59.360 --> 0:55:01.600
<v Speaker 1>want to watch our shows, like if you like the Simpsons,

0:55:02.560 --> 0:55:04.799
<v Speaker 1>I tell you what, maybe you should look at a

0:55:04.840 --> 0:55:09.279
<v Speaker 1>different cable provider because Time Warner Cable just doesn't have

0:55:09.320 --> 0:55:14.000
<v Speaker 1>your back. Man, you should just you should just ditch them. Meanwhile,

0:55:14.040 --> 0:55:17.799
<v Speaker 1>Time Warner Cable is saying, Fox doesn't want to be

0:55:17.960 --> 0:55:22.040
<v Speaker 1>on your chancel on on your service anymore. And if

0:55:22.080 --> 0:55:26.520
<v Speaker 1>we if we capitulate to their demands, that means we're

0:55:26.520 --> 0:55:29.440
<v Speaker 1>gonna have to raise your subscription price. You're gonna have

0:55:29.480 --> 0:55:33.000
<v Speaker 1>to pay more because it's gonna cost us more to

0:55:33.080 --> 0:55:37.080
<v Speaker 1>have Fox on your network. So and we don't want

0:55:37.120 --> 0:55:40.840
<v Speaker 1>to charge you more money. Come on, man, we just

0:55:40.880 --> 0:55:43.400
<v Speaker 1>want to get your stuff to you. So you have

0:55:43.480 --> 0:55:46.000
<v Speaker 1>these two different public relations battles going on at the

0:55:46.040 --> 0:55:51.160
<v Speaker 1>same time, and ultimately they both settled out of public

0:55:51.320 --> 0:55:56.040
<v Speaker 1>view for a fee that was never publicly announced, So

0:55:56.480 --> 0:55:59.400
<v Speaker 1>somewhere probably between twenty cents and a dollar per subscriber,

0:55:59.400 --> 0:56:01.880
<v Speaker 1>as my guest, but who knows what the actual number is.

0:56:02.640 --> 0:56:05.359
<v Speaker 1>Anyone in the deal knows, but anyone outside of it

0:56:05.400 --> 0:56:09.919
<v Speaker 1>probably doesn't. So that's the way that this can get

0:56:09.960 --> 0:56:14.160
<v Speaker 1>really ugly with these carriage deals as well. All of

0:56:14.200 --> 0:56:17.239
<v Speaker 1>that was to say that going with television over the

0:56:17.280 --> 0:56:20.840
<v Speaker 1>Internet has these same issues. It's not like TV of

0:56:20.880 --> 0:56:28.759
<v Speaker 1>the Internet is uh has got a blank pass two

0:56:29.200 --> 0:56:32.839
<v Speaker 1>show you anything and everything. You can't just sign up

0:56:32.840 --> 0:56:35.040
<v Speaker 1>and say I want these six channels, I don't want

0:56:35.040 --> 0:56:39.160
<v Speaker 1>anything else, because again, they have to follow the same

0:56:39.239 --> 0:56:43.040
<v Speaker 1>rules as cable and satellite providers. This is largely because

0:56:43.040 --> 0:56:44.719
<v Speaker 1>in the United States, at least, there are all these

0:56:44.760 --> 0:56:49.520
<v Speaker 1>different rules and regulations in place to protect industries from

0:56:49.719 --> 0:56:54.200
<v Speaker 1>what is considered to be unfair competition. Cable and satellite

0:56:54.239 --> 0:56:57.640
<v Speaker 1>channels or providers rather have to follow these rules that

0:56:57.680 --> 0:57:01.200
<v Speaker 1>have been set up in order to create one it's

0:57:01.200 --> 0:57:03.800
<v Speaker 1>supposed to be a fair playing ground. You could argue

0:57:03.800 --> 0:57:05.480
<v Speaker 1>that that's not really the case since there are so

0:57:05.640 --> 0:57:09.919
<v Speaker 1>few major providers in the United States, but that's what's

0:57:09.920 --> 0:57:15.360
<v Speaker 1>supposed to happen. The Internet providers also are supposed to

0:57:15.360 --> 0:57:18.880
<v Speaker 1>follow those rules because without it they could run rampant,

0:57:19.320 --> 0:57:23.280
<v Speaker 1>and in fact, there have been some pretty big cases

0:57:24.080 --> 0:57:27.640
<v Speaker 1>involving stuff that is kind of in a gray area.

0:57:28.160 --> 0:57:31.720
<v Speaker 1>Between these You may remember when I was talking earlier

0:57:31.720 --> 0:57:36.600
<v Speaker 1>in this episode about people in Pennsylvania and Arkansas and uh,

0:57:36.680 --> 0:57:41.160
<v Speaker 1>you know, using these cables connected to antenna so that

0:57:41.200 --> 0:57:43.280
<v Speaker 1>they could get access to stuff that otherwise they would

0:57:43.320 --> 0:57:46.160
<v Speaker 1>not be able to receive because the signals are too

0:57:46.160 --> 0:57:50.280
<v Speaker 1>weak for them to pick up on their home television sets.

0:57:51.600 --> 0:57:57.040
<v Speaker 1>There was a company called Areo that launched and the

0:57:57.080 --> 0:58:00.280
<v Speaker 1>two thousand twelve and went out of busines this in

0:58:00.320 --> 0:58:02.840
<v Speaker 1>two thousand fourteen. And the reason when out of business

0:58:02.960 --> 0:58:06.200
<v Speaker 1>wasn't because of lack of customers, but because it encountered

0:58:06.280 --> 0:58:10.400
<v Speaker 1>legal problems. What area was doing was offering up a

0:58:10.440 --> 0:58:14.320
<v Speaker 1>service where you can subscribe to the service and get

0:58:14.360 --> 0:58:18.320
<v Speaker 1>access over the internet to live television stations that were

0:58:18.360 --> 0:58:23.880
<v Speaker 1>picked up by local antenna. Uh not your antenna, but

0:58:24.000 --> 0:58:27.080
<v Speaker 1>the business is antenna and they had set up antenna

0:58:27.120 --> 0:58:30.080
<v Speaker 1>originally in New York City, and so you could subscribe

0:58:30.080 --> 0:58:34.560
<v Speaker 1>to this business and get access to live TV picking

0:58:34.720 --> 0:58:37.320
<v Speaker 1>that was being picked up by these antenna. And there

0:58:37.320 --> 0:58:42.520
<v Speaker 1>were service providers and uh, content providers who said, this

0:58:42.560 --> 0:58:45.880
<v Speaker 1>isn't fair. We can't get compensated for this. There's no

0:58:46.000 --> 0:58:50.960
<v Speaker 1>carriage agreement. And Ario's argument was saying, well, we're just

0:58:51.040 --> 0:58:54.960
<v Speaker 1>using antenna. We're using broadcasts that are over the air.

0:58:55.360 --> 0:58:58.480
<v Speaker 1>There's no limit, you know, there's not anything here that

0:58:58.560 --> 0:59:02.320
<v Speaker 1>should be a gateway or a wall between the customer

0:59:02.400 --> 0:59:06.040
<v Speaker 1>and the content. So it's the exact same thing as

0:59:06.040 --> 0:59:08.160
<v Speaker 1>if the customer had set up his or her own

0:59:08.240 --> 0:59:11.760
<v Speaker 1>antenna in their own home. All we're doing is just

0:59:11.800 --> 0:59:15.560
<v Speaker 1>sort of creating a middleman approach where we've got the antenna,

0:59:15.800 --> 0:59:19.040
<v Speaker 1>but the customer still gets to see stuff that's over

0:59:19.040 --> 0:59:23.080
<v Speaker 1>the air. It's not like we're descrambling signals or anything.

0:59:23.080 --> 0:59:27.880
<v Speaker 1>This is all in the clear broadcasts. But the various

0:59:27.920 --> 0:59:31.600
<v Speaker 1>industry group said, no, you're you you're charging a subscription

0:59:31.640 --> 0:59:34.480
<v Speaker 1>fee for the service and we're not seeing any of that,

0:59:34.960 --> 0:59:36.640
<v Speaker 1>and we don't have any of these carriage agreements. You're

0:59:36.640 --> 0:59:40.640
<v Speaker 1>acting more like a cable provider than you are anything else. Uh.

0:59:40.720 --> 0:59:43.280
<v Speaker 1>And if in fact this we're just a case of

0:59:43.480 --> 0:59:46.840
<v Speaker 1>using an antenna, then there's already a solution there, right.

0:59:47.240 --> 0:59:49.200
<v Speaker 1>The person can just go out and buy an antenna,

0:59:49.400 --> 0:59:51.200
<v Speaker 1>never mind the fact that, depending upon where you live,

0:59:51.240 --> 0:59:53.520
<v Speaker 1>you may not be able to get a good signal

0:59:53.600 --> 0:59:57.600
<v Speaker 1>over the air using an antenna. That was the argument,

0:59:57.960 --> 1:00:01.760
<v Speaker 1>and Originally some of the lower courts agreed with Area,

1:00:01.880 --> 1:00:03.920
<v Speaker 1>but eventually this went all the way up to the

1:00:03.960 --> 1:00:07.640
<v Speaker 1>Supreme Court, wherein a six three decision, the Supreme Court

1:00:07.720 --> 1:00:10.200
<v Speaker 1>came down and said, you know what, Area, you don't

1:00:10.200 --> 1:00:13.320
<v Speaker 1>have a leg to stand on. You you are acting

1:00:13.320 --> 1:00:16.840
<v Speaker 1>more like a cable service provider as opposed to just

1:00:16.920 --> 1:00:22.360
<v Speaker 1>an antenna, and therefore you are not allowed to practice

1:00:22.440 --> 1:00:27.320
<v Speaker 1>business in this method anymore. And so the company ended

1:00:27.360 --> 1:00:31.360
<v Speaker 1>up folding. He said they could no longer do that

1:00:31.480 --> 1:00:35.360
<v Speaker 1>kind of business. There are similar businesses that do rely

1:00:36.000 --> 1:00:42.920
<v Speaker 1>upon an actual consumers own UH feed. So, in other words,

1:00:43.080 --> 1:00:47.200
<v Speaker 1>there's slingbox, not to be confused with sling TV, and

1:00:47.280 --> 1:00:51.680
<v Speaker 1>slingbox is a streaming media service. It's a device that's

1:00:51.720 --> 1:00:56.439
<v Speaker 1>actually UH allows you to watch your television no matter

1:00:56.480 --> 1:00:59.520
<v Speaker 1>where you are. But this relies upon the feed that's

1:00:59.520 --> 1:01:04.000
<v Speaker 1>going into your home. It's not like it's a system

1:01:04.160 --> 1:01:07.480
<v Speaker 1>that is connected to someone else's antenna. It's connected to

1:01:07.520 --> 1:01:10.880
<v Speaker 1>your cable box or satellite box or whatever. And the

1:01:10.920 --> 1:01:13.919
<v Speaker 1>way it works is that the incoming signal can then

1:01:13.960 --> 1:01:17.560
<v Speaker 1>be sent over the Internet to the receiver. And the

1:01:17.600 --> 1:01:20.080
<v Speaker 1>benefit of this is you can watch your local television

1:01:20.120 --> 1:01:23.880
<v Speaker 1>even when you're away from home. Now, there are some

1:01:23.960 --> 1:01:26.520
<v Speaker 1>issues with this as well, because depending upon the content

1:01:26.560 --> 1:01:31.480
<v Speaker 1>you're trying to watch, there are blackout agreements that can

1:01:31.600 --> 1:01:34.320
<v Speaker 1>make this a little muddy. So, for example, is sports.

1:01:34.960 --> 1:01:38.600
<v Speaker 1>If I happen to be traveling to let's say ce

1:01:38.920 --> 1:01:41.640
<v Speaker 1>S and I want to watch a Braves game, which

1:01:41.640 --> 1:01:43.120
<v Speaker 1>would be weird because it would be in the middle

1:01:43.160 --> 1:01:47.000
<v Speaker 1>of winter and baseball doesn't happen then, But follow me,

1:01:47.000 --> 1:01:48.960
<v Speaker 1>because we don't have the Thrashers anymore, so I don't

1:01:48.960 --> 1:01:52.240
<v Speaker 1>really have any other sports I would watch, um, but

1:01:52.280 --> 1:01:54.760
<v Speaker 1>I want to watch local sporting event while I'm in

1:01:54.880 --> 1:01:59.240
<v Speaker 1>Las Vegas. Usually I wouldn't have access to it because

1:01:59.560 --> 1:02:03.920
<v Speaker 1>that would have this regional agreement where a very specific

1:02:03.960 --> 1:02:07.400
<v Speaker 1>broadcaster would be allowed to show that, and it would

1:02:07.440 --> 1:02:11.720
<v Speaker 1>only apply to a specific region and not outside of it. Now,

1:02:11.760 --> 1:02:13.760
<v Speaker 1>I live in that region, but I wouldn't actually be

1:02:13.840 --> 1:02:17.160
<v Speaker 1>there at the time. I'd be in Las Vegas. Using slingbox,

1:02:17.240 --> 1:02:20.240
<v Speaker 1>what I could do is tune into my local television,

1:02:20.320 --> 1:02:23.880
<v Speaker 1>the TV set that's actually in my house, change it

1:02:23.920 --> 1:02:26.280
<v Speaker 1>to whichever channel I want to watch, and watch the

1:02:26.280 --> 1:02:32.040
<v Speaker 1>game that way. Even this approach has received some resistance

1:02:32.280 --> 1:02:34.960
<v Speaker 1>but you could argue that this is much more clear

1:02:35.080 --> 1:02:39.440
<v Speaker 1>cut case than the area approach because it's all relying

1:02:39.520 --> 1:02:42.800
<v Speaker 1>on services that you, as a consumer already subscribed to

1:02:43.000 --> 1:02:46.000
<v Speaker 1>or already have access to. It's not giving you access

1:02:46.040 --> 1:02:49.760
<v Speaker 1>to an outside antenna. It is literally the services you

1:02:50.000 --> 1:02:53.840
<v Speaker 1>are getting as a customer somewhere else. Now, some people

1:02:53.880 --> 1:02:58.000
<v Speaker 1>would argue you should just stick with Internet over or

1:02:58.000 --> 1:03:02.080
<v Speaker 1>television over internet services, and you're a little more limited

1:03:02.080 --> 1:03:04.440
<v Speaker 1>because you're not gonna get a lot of localized stuff

1:03:04.520 --> 1:03:07.480
<v Speaker 1>this way. But at the same time, you don't have

1:03:07.520 --> 1:03:11.520
<v Speaker 1>to worry about these weird carriage deals. And like I said,

1:03:11.560 --> 1:03:14.520
<v Speaker 1>this doesn't have really that much to do with technology.

1:03:14.560 --> 1:03:18.000
<v Speaker 1>It has to do with business and competition and the

1:03:18.040 --> 1:03:22.000
<v Speaker 1>fear of competition in some cases. And it also shows

1:03:22.000 --> 1:03:25.520
<v Speaker 1>just how messed up a world our content delivery system is.

1:03:26.600 --> 1:03:30.120
<v Speaker 1>It is incredibly complicated, and it involves a lot of

1:03:30.280 --> 1:03:34.800
<v Speaker 1>very big power players in this space, all working very

1:03:34.840 --> 1:03:39.520
<v Speaker 1>hard to maintain their spot of dominance. It's getting increasingly difficult.

1:03:39.560 --> 1:03:42.040
<v Speaker 1>As we've seen in the cable industry and the satellite

1:03:42.360 --> 1:03:46.600
<v Speaker 1>TV industry, we're starting to see more and more users

1:03:46.680 --> 1:03:51.919
<v Speaker 1>kind of ease off of those those standards. So we're

1:03:51.920 --> 1:03:55.120
<v Speaker 1>seeing more chord cutters moving away from cable TV and

1:03:55.200 --> 1:03:59.200
<v Speaker 1>away from satellite TV and moving toward either going over

1:03:59.240 --> 1:04:01.760
<v Speaker 1>the air and just picking stuff up over antenna or

1:04:02.240 --> 1:04:06.520
<v Speaker 1>using internet delivery systems, and I suspect we're going to

1:04:06.640 --> 1:04:09.840
<v Speaker 1>see that trend continue. It may not mean that we'll

1:04:09.840 --> 1:04:14.840
<v Speaker 1>see a huge adoption of these live TV over internet services,

1:04:15.720 --> 1:04:19.000
<v Speaker 1>largely because I think many consumers are going to see

1:04:19.040 --> 1:04:22.520
<v Speaker 1>them as being prone to the same problems that they

1:04:22.520 --> 1:04:26.400
<v Speaker 1>see in the cable business, although the price might be lower,

1:04:26.440 --> 1:04:29.600
<v Speaker 1>in which case people might say, well, I'm gonna I'm

1:04:29.640 --> 1:04:31.480
<v Speaker 1>still gonna get channels I don't want, but I'm paying

1:04:31.560 --> 1:04:35.120
<v Speaker 1>less for it, so that we may see that happen. Uh,

1:04:35.320 --> 1:04:37.919
<v Speaker 1>We're also seeing, you know, a lot of resistance now

1:04:37.960 --> 1:04:41.680
<v Speaker 1>with so many different competing services out there, this concept

1:04:41.680 --> 1:04:43.919
<v Speaker 1>of I wanted to go to just internet, but when

1:04:43.920 --> 1:04:46.280
<v Speaker 1>I add up everything, it's cost me the same amount

1:04:46.320 --> 1:04:50.520
<v Speaker 1>as getting cable tv. You know, if I'm using Amazon

1:04:50.640 --> 1:04:54.320
<v Speaker 1>Prime and Netflix and Hulu on top of some live

1:04:54.400 --> 1:04:58.160
<v Speaker 1>TV service, that all adds up after a while, and

1:04:58.160 --> 1:04:59.800
<v Speaker 1>it just shows that this really is a lot more

1:05:00.000 --> 1:05:02.400
<v Speaker 1>complicated than just saying I'll take these three channels and

1:05:02.440 --> 1:05:05.240
<v Speaker 1>you can leave the rest. Will we ever get to that.

1:05:05.720 --> 1:05:10.360
<v Speaker 1>I doubt it, at least not not anytime soon. There's

1:05:10.480 --> 1:05:13.240
<v Speaker 1>there's too many players with too large a stake in

1:05:13.280 --> 1:05:18.320
<v Speaker 1>the game to go to that. And ultimately, we consumers

1:05:18.400 --> 1:05:22.720
<v Speaker 1>are actually revenue generators and no company wants to limit

1:05:22.760 --> 1:05:26.680
<v Speaker 1>the amount of revenue they create. Kind of kind of freaky,

1:05:26.720 --> 1:05:30.480
<v Speaker 1>but as I understand, that's how business works. I don't know,

1:05:30.720 --> 1:05:33.800
<v Speaker 1>I'm just a tech guy. Well, that kind of wraps

1:05:33.880 --> 1:05:39.320
<v Speaker 1>up this conversation about how the delivery systems for television

1:05:39.360 --> 1:05:41.720
<v Speaker 1>have changed over the years. I didn't really get into

1:05:41.800 --> 1:05:46.080
<v Speaker 1>time shifting. That obviously is another big element that has

1:05:46.880 --> 1:05:49.600
<v Speaker 1>uh complicated matters. That's of course, when you record a

1:05:49.640 --> 1:05:51.880
<v Speaker 1>show and you watch it on your schedule as opposed

1:05:51.920 --> 1:05:55.760
<v Speaker 1>to when it originally airs. VCRs were kind of the

1:05:55.800 --> 1:05:59.800
<v Speaker 1>start of that, but DVRs really pushed it because then

1:05:59.800 --> 1:06:03.400
<v Speaker 1>you had an easy way to get into a show

1:06:03.440 --> 1:06:07.560
<v Speaker 1>and then bypass stuff like advertising, which brought the question

1:06:07.600 --> 1:06:11.520
<v Speaker 1>the whole monetization model for TV and really shook the

1:06:11.560 --> 1:06:15.560
<v Speaker 1>industry quite a bit. And uh, it's still one of

1:06:15.600 --> 1:06:19.240
<v Speaker 1>the components of television that has people in the industry

1:06:19.240 --> 1:06:23.720
<v Speaker 1>worried because if you suddenly take away the revenue generator,

1:06:24.000 --> 1:06:28.240
<v Speaker 1>the whole concept of using ads to support the production

1:06:28.280 --> 1:06:32.480
<v Speaker 1>of television, eventually you run out of money to produce stuff,

1:06:33.000 --> 1:06:38.680
<v Speaker 1>and so we could ultimately find ourselves in a a

1:06:38.840 --> 1:06:42.960
<v Speaker 1>low point in TV production. Some might argue that the

1:06:43.000 --> 1:06:49.280
<v Speaker 1>reality television era was already evidence of that, although we've

1:06:49.280 --> 1:06:54.640
<v Speaker 1>seen some pretty phenomenal TV come out since the reality

1:06:54.680 --> 1:06:57.760
<v Speaker 1>television boom, so I don't know that that argument is

1:06:58.040 --> 1:07:04.200
<v Speaker 1>entirely uh with merit. But who's to say. It's a

1:07:04.240 --> 1:07:06.920
<v Speaker 1>complicated issue, and maybe one day I'll be able to

1:07:06.920 --> 1:07:11.240
<v Speaker 1>get like a real expert in the industry to break

1:07:11.280 --> 1:07:13.280
<v Speaker 1>it down in a way that we can all understand,

1:07:13.320 --> 1:07:16.000
<v Speaker 1>because goodness knows, I still get confused. If you guys

1:07:16.080 --> 1:07:17.680
<v Speaker 1>have a topic you would like me to cover in

1:07:17.680 --> 1:07:20.440
<v Speaker 1>a future episode of tech Stuff, please let me know.

1:07:20.680 --> 1:07:23.520
<v Speaker 1>Send me a message. The email addresses tex Stuff at

1:07:23.560 --> 1:07:25.320
<v Speaker 1>how stuff works dot com, or you can drop me

1:07:25.360 --> 1:07:28.120
<v Speaker 1>a line on Facebook or Twitter handle both of those

1:07:28.320 --> 1:07:32.800
<v Speaker 1>tech stuff hs W. Remember we are on Instagram and

1:07:32.840 --> 1:07:35.720
<v Speaker 1>you can watch me record this show live on Twitch

1:07:35.760 --> 1:07:39.520
<v Speaker 1>dot tv slash tech Stuff. I record on Wednesdays and Fridays,

1:07:39.560 --> 1:07:41.960
<v Speaker 1>just pop over to twitch dot tv slash tech Stuff.

1:07:41.960 --> 1:07:44.720
<v Speaker 1>You'll see the schedule there. I hope you'll join us.

1:07:44.760 --> 1:07:47.400
<v Speaker 1>We've got a cool chat room in there. You can

1:07:47.600 --> 1:07:51.919
<v Speaker 1>join in on the conversation, make jokes, you know, ask

1:07:52.000 --> 1:07:54.880
<v Speaker 1>for my attention, which I will likely give you as

1:07:54.880 --> 1:07:58.160
<v Speaker 1>soon as I hit a break in between recording segments.

1:07:58.840 --> 1:08:00.600
<v Speaker 1>And I would love to see you there and I

1:08:00.640 --> 1:08:08.520
<v Speaker 1>will talk to you guys again really soon for more

1:08:08.560 --> 1:08:10.840
<v Speaker 1>on this and thousands of other topics, because at how

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<v Speaker 1>stuff works dot com