ERIC Number: ED158330
Record Type: Non-Journal
Publication Date: 1978-Aug
Reference Count: N/A
Pay Cable: A Viable Advertising Medium?
Krugman, Dean M.; Barban, Arnold M.
Cable television, which cannot only clarify local signals to weak signal areas but can also bring in distant signals to areas which have been receiving few signals, has the capacity to present special television programs to customers for extra fees. The number of pay cable subscribers is growing and industry projections are that it will reach 20 million by 1980. A United States Appeals Court recently overthrew a Federal Communications Commission rule which had banned advertising on the pay cable channels. This court ruling opened a large potential market for advertisers. Some factors limiting the attractiveness of pay cable advertising are: (1) although cable television has grown over the years, the disconnect rate is high and this might keep the industry from permitting advertisements since a strong selling point has been "no commercial interruptions," (2) it is not clear that the industry projection of 20 million users by 1980 is accurate, and (3) there is little current penetration of pay cable in the large urban areas. (TJ)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A