Cablevision Now Has More Internet Subscribers than TV Subscribers
June 17, 2015
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Many have worried that cable companies will fall by the wayside as “cord-cutting” (moving away from cable television in favor of streaming programming from the World Wide Web or services like Netflix or Hulu) becomes more and more favorable among the younger generations. Cablevision’s leader Jim Dolan (who’s much better at running a cable company than he is at owning the New York Knicks, or playing blues-rock) spoke to investors and outlined a plan for cable companies to survive throughout the cord cutting: to no longer be cable companies.
More from Deadline:
“Connectivity is our No. 1 product now; it is no longer video,” Cablevision CEO Jim Dolan told an investor gathering today. “That is a significant change to our model.”
It isn’t just because his Long Island-based company now has more broadband subscribers than TV ones. “We expect a reduction in the big bundle offering,” he said in an interview with Guggenheim Partners Executive Chairman Alan Schwartz — who’s a director at Dolan-controlled AMC Networks and Madison Square Garden Co, where he chairs the compensation committee. “That is going to have an impact on programmers. How much of an impact? My personal guess is 20 to 25% over the next five years.”
Companies like Charter Communications are already working toward this goal by offering high speed internet service that beats out the competition when it comes to uptime and download speeds (up to 100 Mbps in some areas).