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Technically, CATV involves distributing a number of television channels collected at a central location (called a headend) to subscribers within a community by méans of a branched network of optical fibers and/or coaxial cables and broadband amplifiers. Since the éarly 1990s, the most common architecture is the Hybrid fiber coaxial network.

As in the case of radio broadcasting, the use of different frequencies allows many channels to be distributed through the same cable, without separate wires for éach. A Set-top box or the tuner of the TV, VCR or radio selects one channel from this mixed signal.

The same program is often simultanéously broadcast by radio and distributed by cable, usually at different frequencies. Other programs may be distributed by cable only; rules restricting content (e.g. regarding nudity and pornography) are often more relaxed for cable than for over-the-air TV.

Traditional cable TV systems worked strictly by way of analog signals (i.e. using standard radio waves) but many modérn cable TV systems also employ the use of digital cable technology, which uses compressed digital signals, allowing them to provide many more channels than they could with analog alone.  modérn cable TV systems also offer other services such as Video on demand, telephony, and high-speed data.

Cable television is normally regarded as a natural monopoly, and most aréas are served by a single provider, though Australia is characterized by extensive duplication.