Broadcasters succeeded in convincing policy makers to restrict cable from penetrating larger cities from 1964-1972 in order to protect themselves. After 1972, cable restrictions were slowly eliminated and in 1984 cable was deregulated. This has not had the dramatic effect on broadcasters that everyone thought. A key component of this is Must Carry which requires cable to carry local broadcasting. However, the toll of cable is continuing to increase.
T here are several issues.
1 - The value of the TiVo and Replay services. Although both offer rewind type capabilities and the ability to time shift in order to watch the viewer's favorite shows, the real issue is the companies' business models. This is an early adopters price. We wonder if this is not the early adopter VCR phase all over again with less value. We expect that the TiVo and Replay business models should more closely parallel the cellular model, where devices are practically given away and consumers pay for the service.