Cablevision Posts 389K Q2 Video Sub Loss2 Aug, 2013 By: Erik Gruenwedel
New York cabler joins Time Warner Cable and Comcast in shedding 1 million combined video subs during the past fiscal period
Cablevision Aug. 2 reported it had more than 2.8 million video subscribers at the end of the second quarter, ended June 30, which was 389,000 less than during the previous-year period.
Bethpage, N.Y.-based Cablevision joins No. 1 and 2 cable operators Comcast and Time Warner Cable in posting combined video subscribers losses totaling more than 1 million.
Some industry observers believe the video sub losses are due to “cord-cutters” and “cord-nevers,” which include subscribers moving away from escalating bundled subscription fees and toward less expensive over-the-top services such as Netflix, Amazon Prime Instant Video, Hulu Plus and Redbox Instant.
Indeed, Cablevision said the average monthly revenue per basic video subscriber in the quarter was $162.42, an increase of $5.49 compared with the prior year period. The uptick helped the cable operator increase revenue 0.8% to $1.57 billion.
Profit ballooned to $135.4 million compared with $63.5 million last year.
“We have delivered significant product enhancements, including an across-the-board increase in Internet speeds, our new multi-room DVR and Wi-Fi initiatives,” CEO James Dolan said in a statement. “These types of advancements are providing an increasingly compelling proposition for new and existing customers.”
In a fiscal call with analysts, Dolan denied speculation that Cablevision would be put up for sale anytime soon.
"Our plans are to continue to proceed in terms of operating the company in the best interest of the company and its shareholders,” Dolan said. "I know all the noise about that. ... You never say never, but other than that we don't have much to say about it."