From relatively humble beginnings almost 50 years ago, the U.S. cable television industry has grown into one of the most powerful sectors in business today. Sitting at the intersection of three major industries – media, telecommunications, and Internet access – cable companies will have a major impact on the future of these multibillion-dollar businesses. No other single competitor, or even combination of competitors – satellite television operators, ILECs/RBOCs – has the technical capability, business relationships, and marketing skills to deliver a better service package to consumers.

The cable television industry’s core position in today’s interactive consumer entertainment market has come about partially by chance and partially as a result of the entrepreneurial spirit in which the business began. By chance, the industry chose coaxial cable, which has proven to be a versatile platform for delivering services that did not even exist in the lab years ago. And an entrepreneurial spirit has enabled the industry to make the most of the opportunities that have emerged as technology has evolved. When cable operators first began to appear in 1948, they were providing over-the-air broadcast signals to households that, due to geography, were unable to receive adequate broadcast television. Typically this involved installing an antenna on top of a mountain between consumers and broadcasters, and running wire cables to consumers’ homes that were in the mountain’s electronic shadow. These early entrepreneurs were simply solving an existing problem, and could not have foreseen the development of the Internet, interactive television, IP telephony, and the other technological and regulatory changes that have led to cable’s strong competitive position today. That said, as the technological basis for competition has evolved, cable operators have responded aggressively by spending billions upgrading cable infrastructure and developing and delivering new services.

This report details cable operations and technologies, evaluates the cable industry, and reviews major cable players and the specific service segments in which they operate.