this post was submitted on 02 Feb 2024
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Have you ever seen cable TV abbreviated "CATV?" That's because the original original pitch for it was as "Community Antenna TV," wherein it would receive local over-the-air broadcasts and then send them over a wire to folks who couldn't receive them properly because they lived behind a mountain or whatever.
The second pitch was getting original content on cable-only channels, but because your subscription was helping pay to license it (unlike the over-the-air channels, which they -- at least initially -- got for free), they would be ad-free.
Of course, nowadays cable companies have been made to pay retransmission fees to broadcast TV networks and cable-only channels are showing ads too, so both content sources are double-dipping revenue streams.
(Side note: that link is to a site trying to sell some kind of service, so ignore the last part of the page -- the explanations at the beginning of it are quite good, though.)
Wow TIL. The double-dipping is pretty sketchy, but not at all surprising. It seems hubristic for Netflix to court the same concepts... I guess cable/network TV probably thought they were untouchable so they could squeeze the consumer, then Netflix happens... Now Netflix thinks it's untouchable and it can squeeze the consumer. Hmm, seems familiar.