Warner-Amex Satellite Entertainment
Encyclopedia
Warner-Amex Satellite Entertainment Company (WASEC) was a joint venture
owned and operated by Warner Communications
(whose share was overseen by Warner executive David Horowitz) and American Express
(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.
in Ohio
and Virginia
. On December 1, 1977, Warner Cable's Columbus, Ohio
unit introduced the QUBE
, the world's first interactive television programming system that predated Video On Demand
by decades. QUBE featured 30 channels, including ten premium and pay-per-view
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:
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 Ross
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. Schneider
, to supply programming to the rapidly expanding cable television universe.
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 (née The Music Channel), in the process developing the careers of such future media executives as Mark Booth, Larry Divney, Fred Seibert
, 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 HBO and Cinemax
), WASEC established a joint venture with Viacom, merging TMC with their premium movie network Showtime to form Showtime/The Movie Channel, 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 Channel
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.
(TCI), and ceasing operations on QUBE completely. As a result of subsequent mergers TCI became part of AT&T Broadband
and later Comcast
.
In 1987, Warner Cable rendered MTV Networks private, selling its assets (MTV, RTS and Nickelodeon) to Viacom for $685 million, ending Warner's venture into cable television until it acquired HBO and Cinemax
as part of its merger with Time Inc. It would also return to basic cable in 1996 through the purchase of Turner Broadcasting System
.
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 DEMAND
and the differing video on demand
On-Demand service. MTV and Nickelodeon (and later Video Hits One or VH1
for short, which launched shortly before the sale) became the core units of Viacom's MTV Networks
. Over the decades, it has expanded into separate units, including:
The Suite from MTV (digital cable
networks):
Showtime Networks also continued to thrive in spite of competition from HBO, Cinemax
, and Starz. The units of Showtime Networks include:
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" Viacom
and CBS Corporation
. The Showtime Networks unit is now a unit of CBS while the MTV Networks is a unit of the new Viacom.
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
owned and operated by Warner Communications
Warner Communications
Warner Communications or Warner Communications, Inc. was established in 1971 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 Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
(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
Time Warner Cable is an American cable television company that operates in 28 states and has 31 operating divisions...
in Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
and Virginia
Virginia
The 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" after the eight U.S. presidents born there...
. On December 1, 1977, Warner Cable's Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
unit introduced the QUBE
QUBE
QUBE was a cable television system that played a pivotal role in the history of American cable television. Launched in Columbus, Ohio in December 1977, QUBE introduced viewers, and the international press, to several concepts that became central to the future development of cable television:...
, the world's first interactive television programming system that predated Video On Demand
Video on demand
Video on Demand or Audio and 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-view
Pay-per-view
Pay-per-view provides a service by which a television audience can purchase events to view via private telecast. 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 ChannelThe Movie ChannelThe 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....
.
- Sight On Sound: A network that aired music programming such as concerts and music videos. It was the prototypical version of MTVMTVMTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
.
- PinwheelPinwheel (TV series)-External links:*...
: An educational/entertainment network aimed towards preschoolers and children. Transformed into NickelodeonNickelodeon (TV channel)Nickelodeon, often simply called Nick and originally named Pinwheel, is an American children's channel owned by MTV Networks, a subsidiary of Viacom International. The channel is primarily aimed at children ages 7–17, with the exception of their weekday morning program block aimed at preschoolers...
in 1979 with the TV series later becoming a part that network's Nick Jr.Nick Jr.Nick Jr. was a programming block on the Nickelodeon television channel, seen on Nickelodeon weekday mornings. It was aimed at a preschool-age audience ages 6 and under. On September 28, 2009, Nick Jr. became its own official channel, replacing Noggin...
block where it ran until 1990.
- Pay-Per-ViewPay-per-viewPay-per-view provides a service by which a television audience can purchase events to view via private telecast. 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 demandVideo on Demand or Audio and 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 Ross
Steve Ross
Steve Ross may refer to:* Steve Ross , American movie mogul* Stephen Ross , British politician* Stephen Ross , American economist...
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
Time Warner Cable
Time Warner Cable is an American cable television company that operates in 28 states and has 31 operating divisions...
, the second largest cable operator in America), and Warner Amex Satellite Entertainment Company (WASEC), run by former CBS Network President John A. Schneider
John A. Schneider
John 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 became Nickelodeon in April 1979.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 (née The Music Channel), in the process developing the careers of such future media executives as Mark Booth, Larry Divney, Fred Seibert
Fred Seibert
Frederick "Fred" Seibert is a television and film producer and entertainment entrepreneur who owns Frederator Studios, and who has held leading positions with MTV Networks, Hanna-Barbera, and Next New Networks; he owns Frederator Studios...
, 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 HBO and Cinemax
Cinemax
Cinemax, sometimes abbreviated as simply "Max", is a collection of premium television networks that broadcasts primarily feature films, along with softcore erotica, original action series, documentaries and special behind-the-scenes features. Cinemax is operated by Home Box Office, Inc., a...
), WASEC established a joint venture with Viacom, merging TMC with their premium movie network Showtime to form Showtime/The Movie Channel, Inc.
Showtime Networks
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...
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 Channel
Showtime Networks
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...
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.
Tele-Communications, Inc. or TCI was a cable television provider in the United States, for much of its history controlled by Bob Magness and John Malone....
(TCI), and ceasing operations on QUBE completely. As a result of subsequent mergers TCI became part of AT&T Broadband
AT&T Broadband
AT&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 1999, AT&T Broadband was the largest provider of cable television services...
and later Comcast
Comcast
Comcast Corporation is the largest cable operator, home Internet service provider, and fourth largest home telephone service provider in the United States, providing cable television, broadband Internet, and telephone service to both residential and commercial customers in 39 states and the...
.
In 1987, Warner Cable rendered MTV Networks private, selling its assets (MTV, RTS and Nickelodeon) to Viacom for $685 million, ending Warner's venture into cable television until it acquired HBO and Cinemax
Cinemax
Cinemax, sometimes abbreviated as simply "Max", is a collection of premium television networks that broadcasts primarily feature films, along with softcore erotica, original action series, documentaries and special behind-the-scenes features. Cinemax is operated by Home Box Office, Inc., a...
as part of its merger with Time Inc. It would also return to basic cable in 1996 through the purchase of Turner Broadcasting System
Turner Broadcasting System
Turner Broadcasting System, Inc. is the Time Warner subsidiary managing the collection of cable networks and properties started and acquired by Robert Edward "Ted" Turner starting in the mid-1970s. The company has its headquarters in the CNN Center in Atlanta, Georgia. TBS, Inc...
.
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
Time Warner is one of the world's largest media companies, headquartered in the Time Warner Center in New York City. Formerly two separate companies, Warner Communications, Inc...
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 DEMAND
IN DEMAND
In Demand is a provider of pay-per-view and subscription video-on-demand services, jointly owned by Comcast, Cox Communications, Time Warner Cable, and Bright House Networks...
and the differing video on demand
Video on demand
Video on Demand or Audio and Video On Demand are systems which allow users to select and watch/listen to video or audio content on demand...
On-Demand service. MTV and Nickelodeon (and later Video Hits One or VH1
VH1
VH1 or Vh1 is an American cable television network based in New York City. Launched on January 1, 1985 in the old space of Turner Broadcasting's short-lived Cable Music Channel, the original purpose of the channel was to build on the success of MTV by playing music videos, but targeting a slightly...
for short, which launched shortly before the sale) became the core units of Viacom's MTV Networks
MTV Networks
MTV Networks is a division of media conglomerate Viacom 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:
- MTVMTVMTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
- MTV2MTV2MTV2 is a cable network that is widely available in the United States on digital cable and satellite television, and is progressively being added to analogue cable lineups across the nation...
- Comedy CentralComedy CentralComedy Central is an American cable television and satellite television channel that carries comedy programming, both original and syndicated....
(originally a joint venture with HBOHome Box OfficeHBO, short for Home Box Office, is an American premium cable television network, owned by Time Warner. , HBO's programming reaches 28.2 million subscribers in the United States, making it the second largest premium network in America . In addition to its U.S...
, also owned by Warner Cable's parent company Time WarnerTime WarnerTime Warner is one of the world's largest media companies, headquartered in the Time Warner Center in New York City. Formerly two separate companies, Warner Communications, Inc...
before they purchased the network's interest in the channel) - NickelodeonNickelodeonNickelodeon is a US cable TV channel.Nickelodeon may also refer to:-In television:*Spinoffs of the Nickelodeon channel:** Nickelodeon Magazine, a children's magazine.** Nickelodeon Universe, an amusement park....
/Nick At NiteNick at NiteNick at Nite is the nighttime Cable network that broadcasts over the channel space of Nickelodeon on Sundays from 8.p.m.-7.am., Monday through Fridays from 9 p.m.-7 a.m. and Saturdays from 10 p.m.-6 a.m. . Though it shares channel space with Nickelodeon, A.C. Nielsen Co... - VH1VH1VH1 or Vh1 is an American cable television network based in New York City. Launched on January 1, 1985 in the old space of Turner Broadcasting's short-lived Cable Music Channel, the original purpose of the channel was to build on the success of MTV by playing music videos, but targeting a slightly...
- TV LandTV LandTV Land is an American cable television network launched on 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...
- CMTCountry Music TelevisionCountry Music Television, or CMT, is an American country music-oriented cable television network. Programming includes music videos, taped concerts, movies, biographies of country music stars, game shows, 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 cable
Digital cable
Digital 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.
- TeenNickTeenNickTeenNick, formerly The N, is an American television network aimed at the teenage market. TeenNick is owned by the MTV Networks subsidiary, Viacom. The channel was originally known as The N from its April 1, 2002 launch until September 28, 2009....
- Nicktoons NetworkNickToons NetworkNicktoons is an American digital cable and satellite television network owned by Viacom. It is a sister service of the Nickelodeon cable channel...
- MTV JamsMTV JamsMTV 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 HitsMTV HitsMTV 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 Tr3sMTV Tr3sTr3s 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 ClassicVH1 ClassicVH1 Classic is a television network, launched on May 8, 2000. It is operated as part of MTV Networks, a subsidiary of Viacom and 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 CountryCMT Pure CountryCMT 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 Jams...
(formerly VH1 Country) - mtvUMtvUmtvU is a division of Viacom's MTV Networks which produces a 24-hour television channel that is available on more than 750 college and university campuses across the United States, as well as several digital cable packages...
- VH1 SoulVH1 SoulVH1 Soul is a digital cable and satellite television channel and is the sister network to VH1. It showcases R&B, funk, soul, and Motown music from various periods....
- LogoLogo (TV channel)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, Cinemax
Cinemax
Cinemax, sometimes abbreviated as simply "Max", is a collection of premium television networks that broadcasts primarily feature films, along with softcore erotica, original action series, documentaries and special behind-the-scenes features. Cinemax is operated by Home Box Office, Inc., a...
, and Starz. The units of Showtime Networks include:
- Showtime
- The Movie Channel
- FLIXFlix (cable network)Flix is an American premium television network that is owned by CBS Corporation subsidiary Showtime Networks, Inc., which also runs Showtime and The Movie Channel...
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" Viacom
Viacom
Viacom Inc. , short for "Video & Audio Communications", is an American media conglomerate with interests primarily in, but not limited to, cinema and cable television...
and CBS Corporation
CBS Corporation
CBS Corporation is an American media conglomerate focused on commercial 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...
. The Showtime Networks unit is now a unit of CBS while the MTV Networks is a unit of the new Viacom.
External links
- The History of QUBE
- An insider's look at the QUBE Project
- Time-Warner Cable's Timeline Page, which includes details of the Warner-Amex partnership.