Most cable companies these days are blaming Verizon FiOS and other telecom and DBS competitors for lackluster video subscriber additions. Yet Cablevision, who probably is most exposed to competition from Verizon FiOS in the metropolitan New York market is bucking the trend. Their most recent quarterly report shows actual growth in all video subscriber units, including basic cable. In fact Cablevision leads all cable companies in terms of penetration for desirable services, despite the competition from Verizon. The numbers are impressive:
- Digital Cable penetration – 84%
- High Speed Internet penetration – 49%
- Voice Telephony penetration – 34%
- HD penetration of Digital Subscribers – 40%
The good news pushed their stock price up more than 7% in one day. It all begs the question, what’s their secret? How have they been able to stand straight up to Verizon, where others are failing? Perhaps their push of value add services like deploying free Wi-Fi hotspots for their broadband customers throughout their footprint, or caller-ID on the television is helping. Cablevision also extended it’s triple play bundle promotions to all of it’s subscribers, not just new ones. Maybe that strategy is paying real dividends now. Whatever the case, the real test will be whether they can sustain these efforts. Verizon certainly will be taking notice, and will respond. Can Cablevision continue to brush off Verizon’s challenge? Stay tuned.
