A closed-circuit television system at the
Hotel New Otani Tokyo in
Tokyo, Japan inspired
Steve Ross, Chairman of
Warner Communications, to wonder what could be done to improve the performance of Warner's tiny cable television division. Ross was intrigued by the potential of delivering
Warner Bros. movies directly to home subscribers. At the time,
Warner Cable was a small division of Warner Communications, run by a former
Western Union telecommunications executive and attorney, Gustave Hauser. Ross surrounded Hauser with entertainment industry executives, including
Jac Holzman, who had sold his
Elektra Records to Ross in 1967;
Mike Dann, the
CBS programming wizard responsible for
The Beverly Hillbillies and
Green Acres; former CBS general counsel Spencer Harrison, an executive involved in the launch of
My Fair Lady on Broadway; and
Ted Ashley, whose talent agency was Ross's first acquisition in enterntaiment business.
Pioneer Electronics was hired to "build the box" that would transform the cable TV service in a few hundred thousand households into a device that was intended to change the entire entertainment landscape. The service was first launched in Columbus, Ohio, amidst considerable national and international press coverage. Hauser dispatched young New York City executive Nyhl Henson to oversee and direct the Columbus interactive channel plan. The initial Qube service debuted with 30 channels (a large number of cable channels at the time), including 10 pay-per-view movie channels (a then-new feature for cable TV); 10 broadcast channels (from Columbus,
Cincinnati,
Indianapolis,
Canton,
Akron, and
Cleveland); and 10 community channels. These community channels included one dedicated to a single show:
Pinwheel, which would go on to air on
Nickelodeon from the latter's launch in 1979; a weather channel; a learning channel; and a channel filled with locally produced programs that showed off QUBE's interactivity. The first Qube box was issued as a test for 4 months to the family of Mr. and Mrs. Walter B. Kesler, in
Hilliard, Ohio. The Kesler family watched the broadcasts that were intended for a larger audience, and caused the eventual push in programming that would affect how cable formatted shows would be put together based on their viewing habits. The Keslers' children, Lori A. and Kurt W., are regarded to be the first product of the "cable generation."
Accomplishments To 30,000 homes scattered around the city and its suburbs, the goal of Qube was rather simple: "To create a faster method for groups to communicate and interact, across distance." Warner used the Qube system to acquire valuable cable franchises, with which it would build and create cable monopolies in several large markets throughout the country. Warner Qube was "awarded" cable franchises in cities such as
Houston,
Milwaukee,
Dallas, Cincinnati,
St. Louis and
Pittsburgh. Many of the fundamental aspects of Qube became important parts of television: pay-per-view and on-demand programs,
MTV and
Nickelodeon. Qube itself was successfully installed and used in half the homes in Columbus, and the interactive results showed a high volume of participation from viewers who had the Qube box and remote. The later remotes added five additional buttons for a total of ten options, and became
wireless. After launching a few other systems beyond Columbus, Qube created an interactive network in Columbus, which sent live, interactive programming to each of the Qube systems for two hours per night during weeknights. One of the most popular programs on Qube,
Soap Scoop, wrapped up the daily events on each of the national
soap operas. Guests on the show included producers and actors from the various programs. The show frequently polled viewers on their opinions regarding characters and plots.
Shortcomings By 1982, Warner Cable was running at a $99 million loss, and by 1983, their total debt was $875 million. Warner Cable brought in
American Express as an investor, and the two companies formed
Warner-Amex Cable Communications with a widely-recognized board of directors, including American Express chairman
Jim Robinson and President
Lou Gerstner, and the former head of
Shearson/American Express,
Sanford Weill. Warner bought out American Express after the latter made an offer to buy Warner's position, leading to conflicts between the two companies. By this time, MTV and Nickelodeon became meaningful endeavors in their own right under the leadership of
Bob Pittman and
Geraldine Laybourne respectively. Through the early 1980s, Qube was either up and running or already built in Pittsburgh, Cincinnati, Dallas, Houston, and St. Louis. Warner Cable now had 200,000 subscribers; the new figure accounted for roughly 1 in 10 U.S. cable television subscribers. Pittman led an unsuccessful effort to buy MTV; there was also an unsuccessful attempt at a public offering. Gus Hauser was gone; taking his place would be President Reagan's Transportation Secretary,
Drew Lewis. Lewis renegotiated with municipalities to ease the burden to Warner of some of the cable franchise deals. However, in order to keep the cable operation going, Warner-Amex Cable went out to sell MTV and Nickelodeon to
Viacom a year later, and the Qube systems were gradually phased out. The last Qube boxes were phased out in 1984. In addition to financial issues, privacy concerns increased among subscribers to Qube. Personal information about a family's specific interests, political views and other personal information could be stored in a database after it was processed during an interactive Qube session. For example, a program could ask viewers to identify their favorite political candidates as part of a national survey, but this information could potentially be traced directly back to the respondents. Although Warner-Amex assured subscribers that their personal information would be kept private, such data was valuable to merchandisers, political groups and other organizations. Even if subscribers trusted Warner-Amex's commitment to privacy, there were still concerns regarding the ability for computer hackers to potentially steal information collected via Qube. Consequently, non-renewals became more numerous, ultimately contributing to the demise of the Qube experiment. Warner Cable's expanded cable service in Columbus and Cincinnati continued to use the Qube name following its shutdown. Warner Cable began installing a fiber-optic cable network in Columbus in December 1989, resulting in the Qube name being phased out in the area. Warner Cable ended its use of the Qube name in Cincinnati in November 1990. ==Qube channels==