Alex Tabarrok (reference below, video on right) explores how markets provide club goods such as cable TV.
“Club goods are non-rival and excludable. For instance, HBO is a club good, as you need to pay a monthly fee to access HBO (excludable) but more viewers does not add to costs (non-rival). Entrepreneurs are always looking for ways to turn public goods into club goods – cable TV and satellite radio being two examples. Some entrepreneurs have even figured out how to profit from providing public goods – for instance, radio and broadcast television are public goods, but, thanks to advertising, they are profitable.”
He notes that some club goods, such as Wi-Fi are provided in a number of ways:
through subscription, by a cable or phone company, where non-subscribers are excluded
for free, by coffee shops as a way of attracting customers
for free by some providers if you watch ads
for free, by some public institutions, as a public good