Warner-Amex Satellite Entertainment Company (WASEC) was a
joint ventureA joint venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise...
owned and operated by
Warner CommunicationsWarner Communications was established in 1972 when Kinney National Company spun off its non-entertainment assets, due to a financial scandal over its parking operations and changed its name....
(whose share was overseen by Warner executive David Horowitz) and
American ExpressAmerican Express Company , sometimes known as "AmEx", is a diversified global financial services company that is headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best known for its credit card, charge card, and...
(Lou Gerstner, then American Express President, ran the Amex share) that developed and worked on interactive television systems in the late 1970s and initiated several successful cable networks that remain well-known.
The QUBE
In 1974, Warner Communications entered the cable television industry by forming
Warner CableTime Warner Cable is an American national cable television company that operates in 27 states and has 31 operating divisions. Its corporate headquarters are located in New York, NY, and has other corporate offices in Charlotte, North Carolina; Herndon, Virginia; and Denver, Colorado...
in
OhioOhio is a Midwestern state of the United States. The thirty-fourth largest state by area in the U.S., it is the seventh-most populous with nearly 11.5 million residents...
and
VirginiaThe Commonwealth of Virginia is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" because it is the birthplace of eight U.S. presidents. The geography and climate of the state are shaped by the Blue...
. On December 1, 1977, Warner Cable's
Columbus, OhioColumbus is the capital and the largest city in the U.S. state of Ohio. It is the county seat of Franklin County, although parts of the city also extend into Delaware and Fairfield counties...
unit introduced the QUBE, the world's first interactive television programming system that predated
Video On DemandVideo on Demand or Audio Video on Demand are systems which allow users to select and watch/listen to video or audio content on demand....
by decades. QUBE featured 30 channels, including ten premium and
pay-per-viewPay-per-view provides a service by which a television audience can purchase events to view via private telecast of that event to their homes. The broadcaster shows the event at the same time to everyone ordering it...
networks and ten interactive channels operated by set-top box connected to a modem.
Among the channels introduced on the QUBE were precursors to popular channels that exists today including:
- Star Channel: Existing prior to the creation of QUBE in 1973, it served as a premium movie channel for the system. The direct precursor to The Movie Channel
The Movie Channel is an American premium channel owned by Showtime Networks, Inc., a subsidiary of CBS Corporation, which shows mostly movies, as well as special behind the scenes features, softcore adult erotica and movie trivia.-Channels:The Movie Channel operates two multiplex channels, The...
.
- Sight On Sound: A network that aired music programming such as concerts and music videos. It was the prototypical version of MTV
MTV is a cable television network based in New York City and launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs...
.
- Pinwheel: An educational/entertainment network aimed towards preschoolers and children. Eventually transformed into Nickelodeon
Nickelodeon is an American cable television channel owned by Viacom. Since the mid-1990s and early 2000s Nickelodoen as a brand has expanded into other territories including Europe, the Middle-East, Russia and Asia.It is often referred to by its shortened name, Nick, a practice that dates back to...
and was later the name for that network's preschool programming blockPinwheel is a children's television show that aired on the Nickelodeon cable network from 1979 to 1990. The show was the original program featured on the Nickelodeon network .-Longevity:...
until 1990.
- Pay-Per-View
Pay-per-view provides a service by which a television audience can purchase events to view via private telecast of that event to their homes. The broadcaster shows the event at the same time to everyone ordering it...
: First-run movies, sporting events, headline news and special programming were available with a push of a button for a fee. The direct prototype of all pay-per-view services and in turn, video on demandVideo on Demand or Audio Video on Demand are systems which allow users to select and watch/listen to video or audio content on demand....
.
Despite its technological innovation and vision, the creation of the QUBE and its relative financial failure meant that Warner Communications needed outside capital to expand beyond Columbus, Ohio. Additionally, Warner leader
Steve RossSteve Ross may refer to:* Steve Ross , Time Warner CEO.* Stephen Ross , British politician.* Stephen Ross * Steve Ross , film director....
understood that the future of cable television was going to demand an ever expanding programming need. In December 1979, Warner Communications and American Express each contributed $75 million to form a joint venture with two divisions. Warner Amex Cable Company, run by Gus Hauser, would build local cable systems across the United States (today as Time-Warner Cable, the second largest cable operator in America), and Warner Amex Satellite Entertainment Company (WASEC), run by former CBS Network President
John A. SchneiderJohn A. Schneider was suddenly appointed the president of the CBS Television Network on February 28, 1965, when his predecessor, James T. Aubrey, was fired....
, to supply programming to the rapidly expanding cable television universe.
Beyond QUBE and the end of Warner-Amex
Seeing the potential in the creation of new cable networks, WASEC divested QUBE's biggest brands, Star Channel and Pinwheel, into nationwide outlets. Star Channel began by satellite in January 1979 and was renamed The Movie Channel by the end of the year. Pinwheel, which entered another market in New York in April 1979, became a national satellite network in 1981, renamed as Nickelodeon.
WASEC President Jack Schneider had as his de-facto operating officer executive vice-president John Lack. Lack, in turn, brought in radio programmer Bob Pittman to manage The Movie Channel.
Lack had worked in sales at CBS Radio (in fact, it was he who suggested Schneider to Warner chief Ross) and had an idea of cable programming as a series of special-interest 'channels.' A devotee of popular music, he developed a half-hour show named
Pop Clips at Nickelodeon with musician Mike Nesmith as a program for music video film clips. He also planned a series of 24-hour channels to imitate the strategy of The Movie Channel-- single-focus programming for music, video gaming, and shopping. Bob Pittman accepted Lack's idea and inaugurated the music channel as MTV: Music Television (neé The Music Channel), in the process developing the careers of such future media executives as Mark Booth, Larry Divney,
Fred SeibertFred Seibert is a television & film producer, and an entertainment executive who has held leading positions with MTV Networks, Hanna-Barbera, and Next New Networks...
, Andy Setos, and John Sykes.
In 1983, concerned by the strategic and financial failure of its pay-TV venture The Movie Channel (started to reap the benefits Time Inc. was having with Home Box Office HBO), WASEC established a joint venture with Viacom, merging TMC with their premium movie network Showtime to form
Showtime/The Movie Channel, Inc.Showtime Networks, Inc. is the corporate division of media conglomerate CBS Corporation.The company was established in 1983 as Showtime/The Movie Channel, Inc. after Viacom and Warner-Amex Satellite Entertainment merged their premium channels, Showtime and The Movie Channel respectively, into one...
Warner would return to the pay-TV business a few years later, when it acquired HBO and
CinemaxCinemax is a collection of premium television networks that provide movies, special features, erotica, and other services to consumers. Cinemax is operated by Home Box Office, Inc....
as part of its merger with Time Inc.
Meanwhile, WASEC operating partner Warner Communications experienced financial upheaval, including the reversal of fortunes at innovator Atari, and legal questions about business dealings of Ross and his senior lieutenants. In an effort to maximize the good news, Warner Communications decided to spin off Nickelodeon and the rapidly growing phenomenon MTV as a public company (MTV Networks). American Express exited the WASEC venture at this time. Jack Schneider also left WASEC, being replaced by senior Warner executive David Horowitz (who oversaw Warner Communications' half of the WASEC joint venture).
A year later, American Express sold their stake in Warner-Amex to Warner Communications, which renamed the company Warner Cable.
In 1985, Warner sold its interest in
Showtime/The Movie ChannelShowtime Networks, Inc. is the corporate division of media conglomerate CBS Corporation.The company was established in 1983 as Showtime/The Movie Channel, Inc. after Viacom and Warner-Amex Satellite Entertainment merged their premium channels, Showtime and The Movie Channel respectively, into one...
to Viacom, making them the sole owner of both networks.
During this period, Warner Cable reorganized itself by dividing the company in half (a "metro" unit that had newer wired communities and a "national" unit which comprised the older systems), selling the Dallas and Pittsburgh systems to
Tele-Communications Inc.Tele-Communications, Inc. or TCI was a cable television provider in the United States, for much of its history controlled by John Malone.The company came into being in 1968, following the merger of Western Microwave, Inc. and Community Television, Inc...
(TCI), and ceasing operations on QUBE completely. As a result of subsequent mergers TCI became part of
AT&T BroadbandAT&T Broadband was the name of AT&T's cable operations, which were composed of the assets of TCI and MediaOne, Prime Cable, as well as two Comcast cable systems AT&T acquired later in a system swap. Formed in 2000, AT&T Broadband was the largest provider of cable television services...
and later
ComcastComcast Corporation , founded in 1963, is the largest cable operator in the United States, providing cable television, broadband Internet, and telephone service to both residential and commercial customers. Comcast is headquartered in the One Comcast Center in Center City, Philadelphia,...
.
In 1987, Warner Cable rendered MTV Networks private, selling its assets (MTV, RTS and Nickelodeon) to Viacom for $685 million.
The Warner-Amex networks now
The networks that were a part of Warner-Amex are owned by numerous parties. The pay-per-view unit remained under the ownership of Warner Cable (which became
Time WarnerTime Warner Inc. is the world's largest entertainment conglomerate , as well as the world's fourth largest media conglomerate, headquartered in the Time Warner Center in New York City...
Cable after the merger of their parent company Warner Communications and publisher Time, Inc.) and has undergone numerous transformations before its current incarnations as
iN DEMANDIn Demand is a provider of pay-per-view and subscription video-on-demand services, jointly owned by Comcast, Cox Communications, and Time Warner Entertainment. It is the world's leading supplier of PPV and VOD programming.iN Demand originally started out in 1985 as Viewer's Choice...
and the differing
video on demandVideo on Demand or Audio Video on Demand are systems which allow users to select and watch/listen to video or audio content on demand....
On-Demand service. MTV, RTS and Nickelodeon (and later Video Hits One or
VH1VH1 is an American cable television network based in New York City...
for short, which launched shortly before the sale) became the core units of Viacom's
MTV NetworksMTV Networks is a division of media conglomerates Viacom and CBS Corporation that oversees the operations of many television channels and Internet brands, including the original MTV channel in the United States....
. Over the decades, it has expanded into separate units, including:
- RTS (Radio Television Station)
- MTV
MTV is a cable television network based in New York City and launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs...
- MTV2
MTV2 is a cable network that is widely available in the United States on digital cable and satellite television, and is progressively being added to basic cable lineups across the nation...
- Comedy Central
Comedy Central is an American cable television and satellite television channel that carries predominantly comedy programming, both original and syndicated....
(originally a joint venture with HBOHBO is a premium television programming subsidiary of Time Warner, offers two 24/7 pay television services to over 38 million U.S...
, also owned by Warner Cable's parent company Time WarnerTime Warner Inc. is the world's largest entertainment conglomerate , as well as the world's fourth largest media conglomerate, headquartered in the Time Warner Center in New York City...
before they purchased the network's interest in the channel)
- Nickelodeon
Nickelodeon is an American cable television channel owned by Viacom. Since the mid-1990s and early 2000s Nickelodoen as a brand has expanded into other territories including Europe, the Middle-East, Russia and Asia.It is often referred to by its shortened name, Nick, a practice that dates back to...
/Nick At NiteNick at Nite is the evening programming block broadcast over Nickelodeon Sundays through Thursdays from 8:00 p.m. to 6:30 a.m., and Fridays and Saturdays from 10:00 p.m. to 6:00 a.m. Eastern and Pacific Time...
- VH1
VH1 is an American cable television network based in New York City...
- TV Land
TV Land is an American cable television network launched April 29, 1996. It is owned by MTV Networks, a division of Viacom, which also owns Paramount Pictures, and networks such as MTV and Nickelodeon....
- CMT
Country Music Television, or CMT as it is usually called, is an American country music-oriented cable television network. Programming includes music videos, taped concerts, movies, biographies of country music stars, and reality programs...
(acquired as part of Viacom's purchase of CBS)
- Spike (acquired as part of Viacom's purchase of CBS)
The Suite from MTV (
digital cableDigital cable is a generic term for any type of cable television distribution using digital video compression or distribution. The technology was originally developed by Motorola.-Background:...
networks):
- Nick Jr.
Nick Jr. is the name of a cable network in the United States. The channel was known as Noggin up until September 28, 2009.The network's logo has been adjusted as part of a brand unification effort which saw all four of the Nickelodeon networks take on a unified look...
- TeenNick
TeenNick is the name of a cable channel in the United States that was converted from The N on September 28, 2009 at 6:00AM Eastern/5:00AM Central/3:00AM Pacific...
- Nicktoons Network
Nicktoons is a digital cable and satellite television network owned by Viacom. It is a sister service of the Nickelodeon cable channel. The network broadcasts Nickelodeon's animated series, Nicktoons, along with other original animated series and foreign animation from other Nickelodeon networks...
- MTV Jams
MTV Jams is a Viacom-owned American hip-hop/urban music video channel that debuted on 1998, as MTVX then was relaunched in 2002 under its current name....
- MTV Hits
MTV Hits is an American music video channel that debuted on May 1, 2002. The format of the network resembles that of the classic MTV before the additional of other programming to that network in the 1990s and their slow decline of music video programming...
- MTV Tr3s
MTV Tr3́s is an American cable, satellite and over-the-air network that prides itself as a bi-cultural entertainment destination. It is rooted in the fusion of Latin America and American music, cultures, and languages, bringing the biggest names in pop, urban, and rock music...
(launched after Viacom's purchase of Mas Musica and merged with MTV en Espanol)
- VH1 Classic
VH1 Classic is an American television network started on May 8, 2000. It is operated as part of MTV Networks, a subsidiary of Viacom. It primarily features music videos and concert footage from the 1970s through the mid-1990s, though it formerly included a wider range of genres and time periods...
- CMT Pure Country
CMT Pure Country is a digital cable and satellite television channel, it is the sister network to CMT. It showcases country music videos all day from the 1980s to the current day, using the same 8-hour programming wheel schedule repeated three times daily as sister networks MTV Hits and MTV...
(formerly VH1 Country)
- mtvU
mtvU is a division of MTV Networks which broadcasts a 24-hour television channel that is available on more than 750 college and university campuses across the United States...
- VH1 Soul
VH1 Soul is a digital cable and satellite television channel, it is a sister network to VH1. It showcases R&B, funk, soul, and Motown music from past and present....
- Logo
Logo is an American digital cable television channel owned by Viacom's MTV Networks division. Launched in June 2005, the channel's programs are geared towards the gay, lesbian, bisexual, and transgender community...
Showtime Networks also continued to thrive in spite of competition from HBO,
CinemaxCinemax is a collection of premium television networks that provide movies, special features, erotica, and other services to consumers. Cinemax is operated by Home Box Office, Inc....
, and Starz. The units of Showtime Networks include:
- Showtime
- The Movie Channel
- FLIX
Flix is a premium television network and is owned by Showtime Networks who also run Showtime and The Movie Channel.-Background:The channel launched in 1992. Flix features movies from the 1960s to the 1980s. The channel's tagline is "Movies You Grew Up With". Starting in 2007, Flix began to show...
As of January 1, 2006, the Warner-Amex units are separated from each other as a result of Viacom dividing itself into two companies,
"new" ViacomViacom , short for "Video & Audio Communications", is an American media conglomerate with various worldwide interests in cable and satellite television networks , and movie production and distribution with Paramount Motion Pictures Group. Paramount is also the distributor of movie studio DreamWorks...
and
CBS CorporationCBS Corporation is an American media conglomerate focused on broadcasting, publishing, billboards, and television production, with most of its operations in the United States. The President and CEO of the company is Leslie Moonves. Sumner Redstone, owner of National Amusements, is CBS's majority...
. The Showtime Networks unit is now a unit of CBS while the MTV Networks is a unit of the new Viacom.
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