The cable television companies propose opening a second commercial television channel to compete with Channel 2. The two channels would operate alongside the Broadcasting Authority’s public channel and the cable channels, which would also be financed through advertising. This emerges from the position of the Cable Companies Association as it was presented before the Peled committee, which is investigating the media scene in Israel.
In the opinion of the cable companies, the desirable format for television broadcasting in Israel would comprise three "broadcasting types". The first, public service broadcasts by the general and educational television services of the Broadcasting Authority, would focus on subjects involving "market failure", i.e., low ratings.
The second type would be broadcasts by private concerns, including the Channel 2 franchisees and the News Company, within the framework of the Second Authority, and, as stated, an additional full general channel, with the status of a cable network licensee, to be produced by someone else.
The third type, cable broadcasts, including the independent broadcasts - local and regional channels, relaying of broadcasts originating in Israel (Channel 1, 2, etc.) - broadcasts of neighbouring countries, and satellite broadcasts. Alongside them would be a variety of broadcasts by licensees (like the shopping channel which is already in operation), such as an Arabic language channel, a Jewish tradition channel, an Israeli music channel, and a news channel.
The idea of setting up an additional commercial channel has already been sounded out in the industry.
The cable companies explained to the Peled committee that today, cable channels, and not relay by wireless transmission or by satellite, are the most readily available, the most reliable, and the cheapest broadcasting source.
By law, five-sixths of cable capacity is at the disposal of the cable franchisees. The remaining sixth (7-8 channels) is supposed to serve other concerns, to be determined by the Communications Minister by tender or other means, and they are termed "right of use holders".