The FCC views it necessary because of the growth in various media outlets in local markets particularily from cable and satellite channels. This is why America Online has lobbied congress to allow open access to cable wires through the home. AOL could have the most to lose under this new industry model. Television advertising benefited from a strong economy in 1998 and should continue to benefit in 1999. However, cable television advertising is growing even more rapidly and is outpacing the grow of both TV and radio.
Cable television is a mature business but continues to increase the number of subscribers.
Cable advertising revenues continue to rise due primarily to the attractiveness of better target marketing of audiences. In addition, cable offers advertisers a multitude of different channels. The consensus is that the industry will benefit from new technology such as interactive multimedia services, video on demand, and a proliferation of channel availability. The major source of optimism for the cable industry is the fact that a large majority of the public wants the service. Cable television has competitive advantages over its rivals, including the broadcast networks.