3. How have the cable programming and delivery companies responded to the Internet? The Internet has transformed the music industry. Sales of CDs in retail music stores have been steadily declining while sales of songs downloaded through the Internet to iPods and other portable music players are skyrocketing.

Moreover, the music industry is still contending with millions of people illegally downloading songs for free. Will the television industry experience a similar fate?

Widespread use of high-speed Internet access, powerful PCs with high-resolution display screens, iPhones, iPads, other mobile handhelds, and leadingedge file-sharing services have made downloading of video content from movies and television shows faster and easier than ever. Free and often illegal downloads of some TV shows are abundant. But the Internet is also providing new ways for television studios to distribute and sell their content, and they are trying to take advantage of that opportunity.