Well, it's actually Tuesday, so it's that time once again. Last week, we reviewed the exploration of the mysterious world lurking beneath the gases of Venus. This week, we're turning to an even more bizarre world: television broadcasting. Truth is life and I would like to thank the
Brainbin for his generous contributions to discussing the altered broadcasting landscape ITTL and for reviewing several drafts of this post.
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Eyes Turned Skyward, Part II: Post #16
The idea of using communications satellites not merely to replace cable and microwave backbones in carrying signals across oceans and great expanses of land, but to replace conventional systems of distribution altogether by beaming signals directly from one location to another was developed soon after the concept of the communications satellite itself. The development of actual satellites during the late 1950s and early 1960s only intensified the conceptual development of these systems; although it was soon recognized that fully point-to-point communications were far beyond the then-current state-of-the-art, only a little development seemed necessary to use satellites in a system of national broadcasting, which development was quickly entered into by both the United States and the Soviet Union as a way of efficiently delivering communications worldwide. The launch of the American experimental satellite ATS-6 in 1974 and its subsequent success in beaming television programs directly to viewers ranging from Indians to Inuit was only the tipping point in this building trend towards the direct broadcast of television by satellite. Only weeks after the launch, by which time the success of the satellite was abundantly clear, the Radio Corporation of America's satellite division proposed that the second generation of Satcom satellites, expected about 1980 to replace the first generation satellites then being built, be used not just to support conventional broadcast television but also to directly beam television to subscriber's homes. Besides potentially being profitable in its own right, such a scheme could support RCA's subsidiary, the National Broadcasting Company, then in the midst of a severe ratings slide, which could be responsible for much of the system's programming. After mulling over the proposal, RCA's board of directors gave the go-ahead to the project in early 1975, deciding to abandon a decade's work on a promising but troubled video system[1] in the process.
As work on the second-generation satellites and the direct-broadcast system progressed, it became increasingly clear that the initial vision for the project was unworkable. The most serious issue was the basic design of the network itself. In the initial concept, the network would be a sort of NBC Premium, going above and beyond NBC's normal programming to deliver a wide variety of NBC-branded channels. There might be an NBC Kids channel, carrying child-oriented programming around the clock, an NBC News, carrying nothing but news programming, including in-depth reports on the underpinnings of current situations or constant coverage of important events, and so on and so forth, in whatever combinations could be dreamed up by NBC executives. The programming for these channels would be produced in a conventional way, either in-house by existing NBC assets (in the case of NBC News, for example) or by contracting outside production houses for some or all of the material, but the method of distribution would make this a decidedly novel asset in the television world. Not only could RCA profit from both monthly service fees and channel advertising, but by eliminating any need to support NBC's affiliates they would have a larger profit margin, despite expecting to sell satellite reception equipment at a loss. Unfortunately for NBC, however, the world was not standing still while RCA developed its satellite brand. By the mid-1970s, the first buddings of cable television were beginning to appear, with stations such as the Home Box Office and Ted Turner's WTCG, later WTBS, the first superstation and a milestone in increasing access to syndicated and rerun programs, achieving some degree of success on early cable networks. When NBC began pilot testing the proposed initial lineup of premium channels (using cable for distribution in most test areas), they were surprised to find that many people actually preferred these alternatives to NBC's channels, despite multiple attempts to draw viewers away from other channels via incentive packages, cutting advertising so far the channels were actually being run at a loss, and various publicity moves. Drawing in customers to the NBC-branded channels was so difficult, in fact, that it seemed doubtful that the satellite network could be very successful with only those available. As it evolved, the eventual lineup of the "basic" satellite package became remarkably similar to "basic" cable, featuring a similar channel lineup (with the large exception of NBC News, one of the few NBC channels without an established cable competitor), and additional "premium" channels available for an additional fee. While more expensive for RCA than NBC channels would have been, the additional customer volume would more than make up for increased costs, or so it was hoped.
Poor marketability was not the only challenge NBC Satellite faced from its design, however. In an entirely unsurprising reaction to the initial NBC Premium design, most affiliates responded with fury to RCA/NBC essentially proposing to make them irrelevant, especially as NBC's pilot testing of satellite systems revealed that most customers abandoned over-the-air television entirely with satellite or cable systems. Fearing for the viability of their businesses, the affiliates rapidly banded together into regional, then interstate, then national organizations, eventually joining forces to form the NBC Affiliates Association, or NAA. NAA stations complained to the FCC about their own parent's anticompetitive activities, then threatened to desert NBC
en masse and form an entirely new network, tentatively termed the United Broadcasting Network, or UBN , if NBC continued to pursue its anti-affiliate policies. Faced with annihilation of its terrestrial unit (aside from the few stations it owned directly), NBC blinked, guaranteeing a slice of bandwidth for local affiliate stations on its satellites at the cost of eliminating a planned NBC channel. This deal, however effective it was at ensuring NBC's affiliate network would remain with NBC, only deepened NBC's woes as now ABC and CBS began to complain about RCA's business plans. Despite the presence of competitors who had also scented the possibility of new markets and new business generated through direct broadcast, RCA had far and away the most advanced project, and the one with the greatest corporate and financial backing. Faced with yet another significant threat, once again NBC's management attempted to neutralize it before it could become significant, this time suggesting to management at ABC and CBS that they meet with NBC's executives to try to avoid drawing in the FCC and develop an effective self-regulating regime. Over a week of "working vacation," the executives hammered out an agreement that eventually formed the basis for most later regulation of satellite and cable television providers. At the deal's heart was the notion of "carry one, carry all"; if a provider carried the local affiliate of any
one of the networks in a given market, it would have to carry affiliates of
all of the networks in that same market, along with the local PBS affiliate in a sop to notions of broadcasting "for the public good". Although this might remove two otherwise RCA-controlled channels from play, the threat of legal action or heavy regulation from the FCC led RCA to perceive the agreement as the lesser evil in their quest for direct broadcast success. The Vineyard Deal (named after Martha's Vineyard, where the executives met) led ABC and CBS to halt their action against RCA and NBC while awaiting the service's launch, even as it allowed RCA to finally focus completely on getting NBC Satellite on its feet.
The first satellite of the Satcom-D series launched in September 1980 aboard a Titan III, closing out Martin Marietta’s era of Titan commercial space launches as it headed for its designated east position, hovering just off of Brazil's coast to cover the country from the Rocky Mountains to the East Coast [2]. The first regularly scheduled television program in the world delivered directly by satellite to the subscriber's home was the October 3rd, 1980 episode of
Days of our Lives[3], broadcast on a local NBC affiliate, a surprisingly mundane yet perhaps inevitable beginning to the service. After all, soap operas had been one of the first programs to migrate from radio to television in the early 1950s. Nevertheless, growth was slow at first, with competition from cable operators and the tail end of stagflation and the long recession conspiring to keep customers from spending on expensive gadgets and entertainment services. However, due to the low operating costs of a satellite system compared to terrestrial cable or even terrestrial broadcasting, the system quickly began to show an operating profit for RCA, motivating them to further expand the network's viewership. Lower prices, channel selections tailored to the interests of particular regions, and above all else an improved array of channels to distribute all featured in their attempts to woo customers away from cable and terrestrial television. In the latter case, of particular importance was a deal signed by Warner-Amex Satellite Communications, Warner-Amex Cable Communications, and RCA in 1982, giving Warner-Amex the right to distribute certain NBC channels, particularly NBC News as a hedge against Ted Turner's new CNN, in exchange for allowing NBC Satellite to distribute certain Warner-Amex channels, such as Nickelodeon.
At first, this deal was of only slight importance to RCA, which saw viewership of NBC News and subscriptions to NBC Satellite rise modestly over the following year, perhaps as much from the sharp decline in oil prices and general economic recovery starting in 1982 as anything else. However, outside of the figures available to executive officers, a slow groundswell of interest was building in MTV, one of the channels obtained in the Warner-Amex deal. With the channel now being distributed nationwide, an increasing number of teenagers and young adults were incorporating the channel into group entertainment; in a similar fashion to video games a generation later, watching a few music videos was becoming
de rigueur even for gatherings with a different ostensible purpose. The release of three extremely popular Michael Jackson music videos during 1983, culminating in the groundbreaking
Thriller, merely moved this trend into national visibility. Suddenly, the audience was no longer content to merely watch a few videos with friends; instead, they wanted their MTV, and they wanted it now. Hitched to MTV's rocket, NBC Satellite quickly went from being modestly profitable to being one of the most valuable properties in RCA's portfolio, just as NBC itself turned around from its 1970s-era flailing to reestablish itself as one of the most successful networks in television, in the face of greater competition than it had faced a decade earlier.
[1]: This is
SelectaVision, which OTL proved to be a disaster to the tune of more than half a billion dollars in losses for the company, and was a major factor in their collapse and subsequent acquisition in 1986 by General Electric, their erstwhile founder (RCA was a division of GE from 1919 to 1930, when it was spun off into an independent firm). This is why NBC is effectively 49% owned by GE at the present time. The Satcom is actually as OTL, more or less, except of course for the direct broadcast part.
[2]: Three satellites are planned for the Satcom-D (for direct) system; East, West, and on-orbit spare vehicles, similarly to NOAA's GOES weather satellites.
[3]: October 3rd, 1980 was a Friday, and did indeed see a broadcast of
Days of Our Lives. At, I believe, 11:00 AM.