m.
The instability of the subscriber base, thus, is the key problem which must be solved by the franchise. All other issues the demographic composition of the subscriber base, marketing practices, and so forth are significant, and must be addressed, if the key problem is to be solved. These issues, however, are not problems per se. Rather, they are practices and conditions which impinge on the key problem area.
The cable television industry, while it is an established industry, remains in a developmental stage. The dynamic char acter of the entertainment market in which it participates will continue to demand strategy modification by players in the industry for years to come. The players in the television broadcasting industry create a rather complex and often overlapping mosaic. These players,
their roles, and some of their more significant characteris tics in the context of this research are as follows:
1. The major commercial television networks create original programming, and provide this programming free of charge to viewers. The commercial networks derive their income through advertising revenues from the sponsors of their programs.
2. The Public Broadcasting System creates original programming, and acquires original programming from other sources. It provides this programming free of charge to viewers. The organization derives most of its revenues from corporate donations, its affiliate stations, and from federal government grants.
3. Local commercial television stations affiliated with national networks transmit network programming to local viewers free of charge. Most of these stations also create original local programming primarily in the areas of news and sports. These stations derive their revenues from network advertising shares and from national and local advertising sales.
4. Local independent commerial ...