Cablefax The Magazine - July 2010 - 6

MSO OF THE YEAR
WESTERN WALL: Will James Dolan and Cablevision play out West?
Cablevision
Disregard the drama of previous years surrounding Cablevision's
ownership. Forget, also, its tight-lipped policy toward
the press. The MSO's numbers demand attention. Cablevision's
penetration, retention and subscriber growth continue to
outpace its peers, which is no small feat considering it operates
in the highly competitive NY area.
Its 63.3% basic cable penetration is the highest in the industry
and well above the 47.5% average for the top ten MSOs,
based on Leichtman Research Group data. Internet and phone
penetration are well above the norm, too.
Also our '06 MSO of the Year, Cablevision has an advantage
in that it's operating one system to serve its 3mln+ NY subs.
That's helped the numbers, but so has its long-term strategy,
says Leichtman Research Group head Bruce Leichtman.
" A lot of this is not about 2010, but what you were doing [a
decade ago], " Leichtman says. " Upgrading the system and the
channel capacity, offering broadband and getting ready to offer
phone. Doing that early has a tremendous effect. And now they
run it in a disciplined fashion, " he adds.
Fast Facts
\ Cablevision's Internet penetration is 53.9%, besting the Top
10 MSOs (34.5%); phone penetration is 45.3% vs 18.8%
for the Top 10, according to Leichtman Research Group.
\ The MSO has a 75% market share for broadband.
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That early innovation continues to make it presence felt,
says Will Richmond, VideoNuze.com analyst and a longtime
cable industry follower. " Cablevision has continued to
push the envelope, whether on broadband speeds, creating
online video and TV apps, and rolling out new online-only
content services, " he says.
The company lost 40,000 basic video subs in the fi rst
quarter compared to a year ago, but offset those losses
handily with 58,500 new digital video subs, 125,000 new
broadband customers and 165,000 new phone customers,
for a total of 311,000 new revenue generating units, according
to Cablevision data.
To keep existing customers, the operator is extending
its broadband reach via the Wi-Fi rollout it began last year.
Under that project, Cablevision is introducing Wi-Fi in its
service area in downtowns, train stations, parking lots and
other public places.
" Cablevision has been successful in a competitive market
because we have maintained a strong focus on delivering
unbeatable quality and value to our customers, who have
responded by making our products the most highly-penetrated
in the industry, " says John Bickham, Cablevision's President of
Cable and Communications.
Next question: Will the one-system strategy play out of
town? Cablevision announced plans to acquire 300,000-sub
Bresnan, which has systems in Colorado, Utah, Wyoming and
Montana. The industry will watch closely to see if Cablevision
can apply its New York rigor to a more widespread market.
July 2010
CableFAX: The Magazine
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Cablefax The Magazine - July 2010

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