Most recently the Internet has changed the manner in which people access the news, communicate with one another, and watch television programs. As a result cable television companies have attempted to adopt new business models that often involve mergers and acquisitions. These mergers and acquisitions can take place between cable television companies to create a larger cable television company or between cable companies and telephone/Internet service providers. Some of the largest mergers have taken place between cable companies and high technology companies. There are a number of variables that can determine the success of a merger.
Cable television is a major industry in the United States and throughout the world. According to the Federal Communications Commission (FCC) Cable television (CATV) was created in the 1940's specifically from communities that could not receive TV signals because of the distance from television stations or because of the terrain. Cable television functions by finding antennas in areas with excellent reception and picking up broadcast station signals and then distributing these signals via coaxial cable to subscribers for a monthly payment. The FCC (2000) further explains that "in 1950, cable systems operated in only 70 communities in the United States. These systems served 14,000 homes. By October 1998 there were more than 10,700 systems serving more than 65 million subscribers in more than 32,000 communities. Cable systems are operating in every state of the United States and in many other countries, including Austria, Canada, Belgium, Germany, Great Britain, Italy, Japan, Mexico, Spain, Sweden and Switzerland."
There are approximately 30 to 60 channels that most cable stations...
In recent years there has been a substantial increase in the number of television stations available. For instance, there are systems that offer more than 100 channels. The majority of subscribers to cable television have over 54 channels from which to choose. The channel capacity of a cable system encourages providers to offer customers many different services. Not only do cable companies offer over-the-air television broadcast signals, they also offer customers a variety of programming. This programming includes special entertainment features, business information, news, weather, movies, sports, and programming designed for certain groups such as women, children, and ethnic and racial groups (FCC, 2000).
Many cable companies also develop their own local programming and provide access channels so that institutions and public agencies. Cable companies can also offer access channels for rent during specific time slots. "Electronic banking, shopping, utility meter reading, and home security are some of the home services that are possible using the two-way transmission capabilities of cable television systems" (FCC, 2000).
In recent years the manner in which cable television is delivered has changed rapidly because of changes in technology and the manner in which information is delivered. There was a time when the delivery of television beyond local stations was in the hands of a few. However over the last decade the increased popularity of satellite television has presented the cable industry with a great deal of competition. Competition is also present as it pertains to the manner in which people get information such as the news. In today's tech savvy environment consumers often turn to the
