High Speed Access More Profitable Than Video by 7:1 Margin, Cablevision Says
Make no mistake, high speed access is far and away the most-profitable service sold by the firm to its consumer customers.
Speaking at the Guggenheim TMT Symposium in New York, James Dolan, Cablevision Systems Corp. CEO said that the company's high speed access services outperform its linear TV services “hugely” in terms of profitability.
"The video product itself has lost a tremendous amount of margin," he said. "Dollar for dollar, the data product outperforms the video product seven to one at our company in terms of profit.”
Dolan believes the number of customers paying for the traditional big bundle of TV channels is going to shrink by about 20 percent to 25 percent over the next five years, as programmers themselves go direct to end users, over the top alternatives gain popularity and distributors create and market smaller video bundles.
"Connectivity has really become our number one product," Dolan said.