I used to think that closed captions were produced by some guy watching TV in real-time (not fake-time) and typing very rapidly. In fact, this is actually the case. However, speech-to-text reporters will use a stenotype machine, and with the improvements in speech recognition software some networks do live subtitling by having someone re-speak what is being broadcast into a computer.
Also, captions are “closed” because not all viewers have to see them, if they don’t want to. And yes, I did just write an entire post based on a funny picture.
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