Warner-Amex Satellite Entertainment
Warner-Amex Satellite Entertainment Company (WASEC) was a
joint venture owned and operated by
Warner Communications and
American Express that developed and worked on interactive television systems in the late 1970's and launched several successful cable networks that have become household names to this day.
In
1973, Warner Communications entered the cable television industry by forming
Warner Cable 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:
*
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*
Sight On Sound: A network that aired music programming such as concerts and
music videos. It was the prototypical version of
MTV.
*
Pinwheel: An educational/entertainment network aimed towards preschoolers and children. It was the prototypical version of
Nickelodeon.
*
Pay-Per-View: First-run movies, sporting events, and special programming were available with a push of a button for a fee. The direct prototype of all pay-per-view services before it evolved into the On Demand service.
The creation of the QUBE meant that Warner Communications needed outside capital to expand beyond Columbus, OH. American Express became a partner in Warner Cable now renamed Warner-Amex Satellite Company.
Despite its innovative technology, QUBE was a financial failure, and Warner-Amex needed to find a new way to earn capital.
Drew Lewis, who would later become the U.S. Secretary of Transportation in the first
Reagan administration, managed the company's operations during this period.
Seeing the potential in the creation of new cable networks, Warner-Amex spin off QUBE's biggest brands, Star Channel, Pinwheel and Sight On Sound, into nationwide outlets. Star Channel launched on satellite in January
1979 and 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, relaunching itself as
Nickelodeon. That same year, Sight On Sound relaunched under a new music video-only format and rechristened itself as
MTV: Music Television.
In 1983, Warner-Amex and
Viacom merged their premium movie networks (The Movie Channel and
Showtime, respectively) into a joint venture called Showtime Networks, Inc.
A year later, American Express sold their stake in Warner-Amex to Warner Communications, renaming the company Warner Cable. During this period, Warner Cable reorganized itself by splitting the company in half (a "metro" unit that had newer wired communities and a "national" unit which comprised of the older systems), selling the Dallas and Pittsburgh systems to TCI (who would become
Comcast), and ceasing operations on QUBE completely.
In
1985, Warner Cable sold off MTV, Nickelodeon, and the remaining interests in Showtime Networks to Viacom for $685 million.
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 Warner Cable after the merger of their parent company Warner Communications and publisher Time, Inc.) and has undergone numerous transformations before its current incarnation as the 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.
These include:
* MTV
*
MTV2*
Comedy Central (originally a joint venture with
HBO (ironically also owned by Warner Cable's parent company
Time Warner before they purchased the network's interest in the channel)
* Nickelodeon/
Nick At Nite* VH1
*
TV Land*
CMT*
Spike TV (the latter two were acquired as part of Viacom's purchase of
CBS Corporation (1997))
The Suite From MTV (
digital cable networks):
*
Noggin/
The N (originally a joint venture with
Sesame Workshop until Viacom purchased the company's interest in the channel)
*
Nickelodeon GAS*
Nicktoons Network*
MTV Jams*
MTV Hits* MTV Latino
*
VH1 Classic*
CMT Pure Country (formerly VH1 Country)
*
VH1 Uno*
VH1 Soul*
LOGO Showtime Networks continued to thrive in spite of competition from HBO,
Cinemax, and
Starz.
The units of Showtime Networks include:
* Showtime
* The Movie Channel
*
FLIX* The
Sundance Channel (a joint venture along with
Robert Redford and
NBC Universal)
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.
*
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.
