Cable Television

Cable television sends and receives television signals through coaxial cable instead of over the air. A master antenna or satellite dish receives a signal which is sent through wires to numerous receiving points. Boosters or amplifiers along the route maintain signal strength and quality. Cable was originally called CATV—community antenna television— and developed in the late 1940s in rural and mountainous areas of the country that suffered from poor reception of broadcast television. Urban systems emerged slowly over the next 30 years, and the industry’s real growth came in the late 1970s and 1980s as cable programs became an alternative to broadcast television.

By the 1990s, two of the country’s largest multiple system operators (MSO’s) provided service to Indianapolis. American Cablevision, part of Time Warner Cable, was franchisee for the area within the pre-Unigov city limits, or the central city. It had subscribers in almost half the homes in its service area. Comcast Cable operated within the formerly unincorporated areas of Marion County, as well as Beech Grove, Speedway, Lawrence, and Southport. Its penetration level was near 60 percent.

While broadcast stations are regulated only by the Federal Communications Commission (FCC), cable systems are subject to regulation by both the FCC and local governments, because cable operators must use local streets and utility poles to string their cable. Local governments issue franchises to serve particular communities. By the 1990s, cable operations in Indianapolis were governed by Chapter 8 ½ of the Municipal Code. Originally enacted in 1979, this chapter called for the development of cable television that was versatile and reliable, responsive to the needs of the community and diverse in its information sources. Authority rested with a cable franchise board made up of five members, two of whom were appointed by the mayor, and three by the City-County Council. The board advised the council on cable policy and oversaw franchising. A 1993 amendment created a cable communications agency to make sure cable companies operate within the law and according to their franchise agreements. Chapter 8 ½ also detailed all application renewal procedures for cable operators, as well as award and franchise fees. A new franchisee had to pay an award fee of 20 cents for each home, apartment, motel, and hotel unit in its service area. The annual franchise fee was 3 percent of an operator’s gross revenue and was paid to the city each quarter. Franchise terms were 15 years.

Locally owned Metropolitan Cablevision was the original franchisee for Indianapolis, signing a 25-year agreement with the pre-Unigov Marion County commissioners in 1967. Wabash Cablevision and Metropolitan merged in 1978 to become Indianapolis Cablevision. The 1967 franchise was challenged by numerous parties in 1979 but was ruled valid; Indianapolis Cablevision’s first customers received service later that year. In 1984 Indianapolis Power and Light Company purchased Indianapolis Cablevision, then sold it to Comcast, headquartered in Philadelphia, two years later.

Although the Metropolitan-Indianapolis Comcast franchise was set to expire in 1992, it was extended in 1984 to end the same year as American’s agreement, 1996. American’s 15-year franchise was awarded in 1981 after a political battle involving the City-County Council and the Board of Public Works.

As part of their service, both operators offer various cable networks, superstations, and premium services. American offered subscribers 42 channels in 1993, while Comcast had 37. Both companies also include three public access channels. Local government was featured on one channel and first offered live coverage of the City-County Council in 1984. A second channel was used for educational purposes, and the third was a public access channel where individuals or groups could produce and present their own programming.

Prior to 1993, cable systems were required to carry all local commercial broadcast stations. However, the federal Cable Act (1992) gave broadcasters the option of keeping their “must carry” status or negotiating payment from the cable systems for “retransmission consent.” Locally, only Channel 23 chose “must carry.” The other Indianapolis stations ran big advertising campaigns claiming they should be paid the same way as cable networks because local TV made cable more valuable. Cable companies countered with their own ads, charging that cable gave local TV more viewers, which allowed the stations to charge more for advertising. Some stations eventually reached agreements giving them access to another cable channel for other programming in lieu of payment. The other stations agreed to extend negotiations with cable operators into 1994.

*Note: This entry is from the original print edition of the Encyclopedia of Indianapolis (1994). We are currently seeking an individual with knowledge of this topic to update this entry.