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APPENDIX

Sloan Commission on Cable Communications, or the cable,

The Television of Abundance. McGraw Hill. New York,
1971.

Weinberg, Gary, "Cost Analysis of CATV Components: Final

Report, - RMC Report UR-170, June 1992, prepared for the Office of Telecommunications Policy.

Federal Communications Commission, "Cable Television Ser.

vice: Cable Television Relay Service, * fera ir ef. Vol. 37, No. 3C., Part 11, (Feb. 12, 1972, pp. Jasi3341.

Federal Communications Commission, "Cable Television Sere

vice: Reconsideration of Report and Order,* Ketera Register, Vol 37, NO. 134, Part 11 ( July 14, 192. Pp. 1848-13910

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Television Digest. Inc.. Tivision Factbook Services

Vor me. Washington, D.C.

lower penetration.

the penetration equation.

rate of return on total capital a full percentage point for profitabi.

». the statutory fees proposed in $.644. is to reduce the financial copyright tees are required. The predominant effect of Schedule

We turn tinally to the financial prospects for cable when

only when local circumstances produce unusually favorable penetration,

chance of earning a going rate of return in the top 100 market.

fees are absent. Thum, 7.510-10,000 subscriber systems have some profitable system in each type of market, at least 18 copyright

unusually high penetration is sufficient to produce at least one

Turning to the results in Tables 9 and 10 we lind that such

munities having the same signal lineups, income, etc. will have

penetration is most favorable in other words, nine out of 10 com

third we have in effect selected only the 10% of the cases in which

penetration to vary above or below the average value predicted by

In increasing the average value by one

characteristics. A variety of unmeasured factors can cause actual

greater than would be expected on average, for each set of market

systems (tables 5 and 7) assuming that penetration is one-third

to such variations, we have rerun all of the intermediate-rized

To measure the sensitivity of our findings for typical systems require high-cost local origination facilities, etc. others will require extensive undergrounding, still others will

tions we have reported. Some communities will have higher incones

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13, 11, 12

10.000

7).

20.1

19.7

19.)

12.)

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