The Impact of Satellite Transmission on American Sport Economy in the 1970s and 80s

Abstract

The purpose of this study is to examine the role played by the technological development of TV satellite transmissions on the rapid expansion of sport economy in the United States in the 1970s and 80s. The satellite transmission technology, especially the adoption of Ku-band frequencies, created`superstations' and put an end to the exclusivity of the nationwide land-line networks by the`Big Three' TV Networks. Thousands of isolated cable systems managed to receive programmes from other areas of the country via these superstations due to the creation of these satellite networks. Owing to the new networks, the number of the nationally televised sports games/matches drastically increased, most of which used to be only broadcast locally. Accordingly, the price of broadcast rights, the ad-boards, and merchandising increased. In conclusion, the rapid expansion of the sport economy in the US was caused by the technological innovation of satellite transmissions, and this process occurred between approximately 1978 and 1984.