Directions:
1. Decide if the underlined words can be ignored.
2. If not, see if you can use the context clues to help you figure out the meaning of the words
3. Look them up in the dictionary and, in the provided space, write down the definition that is applicable to the context of the article.

1. chain ____________________________________________________

2. perception ________________________________________________

3. stakes ___________________________________________________

4. against legal bars __________________________________________

5. counter __________________________________________________

6. assimilate _________________________________________________

Part II: Comprehension Questions

Directions: Complete the questions below.

1. What is mainly discussed in Paragraph 1?

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2. What step did HBO take to cope with its loss in its early operation? (Paragraph 1)

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3. According to the author, did the merger with Warner make HBO more active player in pay TV industry? Why? (Paragraph 1)

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4. What do the four main channels stated in line 17 refer to? (Paragraph 1)

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5. To major cable operators, in addition to revenues from subscription, they have other ways of making money. Give an example of these. (Paragraph 1)

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6. To Summer Redstone, the owner of Viacom, cable TV market seemed to be a promising future. Do you think this conclusion is true? Support your answer with a piece of evidence from the article. (Paragraph 1)

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7. ‘the demand’ in line 30 refers to ________________________________

8. What did cable operators do to ensure their access to movies? (Paragraph 2)

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9. What brought about the formation of Tri-Star? (Paragraph 2)

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