Pay TV: An Historic Cash Cow

by David Jenyns on February 20, 2009

Like any industry, some of these things have come to pass; others have wildly exceeded market expectations. The smart investor will look to performance before making decisions about the current market. Read on, and plug in to the pay TV market

Perhaps the most exciting things on entertainment horizons are pay and color TV. Despite the current controversy, pay TV or subscription TV, will undoubtedly become a primary entertainment medium because of its inherent flexibility and convenience.

Leading the field are Paramount Pictures and Zenith Radio.

Early in 1960, Paramount’s International Telemeter division launched its first test in Etobicoke, Canada, to explore and develop subscription television systems using both wire and over-the-air techniques. The same problems of economic feasibility and legislative roadblocks are facing the other pay TV system advocated by Zenith Radio Corporation. Early in January 1961, the Federal Communications Commission gave temporary approval to Zenith’s Phonevision pay-TV system. Pay TV has allure for hard-headed investors, primarily because the potential, viewed against the broad background of the television industry, literally staggers the imagination.”

“To wire entire streets or communities,” said Mr. Rogers. Maintenance costs on cabled systems are also high.”

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