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Also known as CATV-"Community Antenna
T.V.," it is the service of broadcasting television to paying
subscribers via a cable system. The typical system has a central
receiving antenna, a studio with film and videotape reproduction
facilities, and the capability to receive audio and video signals
from primary transmitters (either directly or bounced off of satellites),
amplify them, and then re-transmit them (secondary transmission)
via a cable trunk line and distribution system that ends with
the subscriber's receiving unit. The cable network is sometimes
hooked into a computer system and used to provide information
to, or receive responses from, the home viewer.
Cable companies must secure a compulsory license from the U.S. Copyright Office
to operate in the U.S. because they are offering "secondary
transmissions" of "primary material."
In the music industry, those who own copyrights may earn revenue
from certain transmissions of their music and videos through these
systems. Royalty amounts are calculated and distributed to the
copyright owners (or to their licensees) by the Copyright Royalty
Tribunal. The main recipients of these royalty payments are T.V.
program syndicators 73 percent, sports programmers 15 percent,
public broadcasters 5 percent, and performance rights societies
4 percent. The royalty payment rates are set by the Tribunal (i.e.,
by law) and are periodically reviewed and adjusted.
It is interesting to note that performance rights societies are able to "double dip" in that they…
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