With a few thousand dollars, Hostetter and a partner embarked on the development of a small cable company in the early sixties. Beginning with two small towns in Ohio, Continental Cablevision grew by providing better reception to rural communities. Over a three decade period, Hostetter built a cable subscriber base of over 4 million (third largest in the US) and pioneered the launch of regional cable news channels in New England and Chicago. Hostetter sold his business to US West for over $11 billion in 1996.