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Like most other cable and satellite companies, Cablevision's latest earnings
indicate that the NY-based company is slowly leaking TV subscribers. The company lost 56,000 video customers during the third quarter, up from the 37,000 lost by the company during the third quarter last year. Unlike other cable operators who make up for TV losses with broadband and Internet voice subscriber additions, Cablevision lost 23,000 broadband customers and 33,000 Internet voice customers on the quarter as well.
There was a point in time when Cablevision was the cutting edge of broadband speeds, offering tiers unheard of at other ISPs. These days, Cablevision seems fairly content to simply raise rates right alongside their closer competitor Verizon FiOS
, without matching any of Verizon's faster speeds.
Late last year Cablevision management proudly proclaimed
that they found competing on price by using promotions to be a "dead end." An analysis of cable bills earlier this year by SNL Kagan indicated that Cablevision customers pay among the highest rates for TV in the nation
Cablevision boss James Dolan says they're letting deal hunters and credit-challenged customers simply walk to Verizon. Verizon saw a net income of $3.79 billion last quarter, adding 162,000 net new FiOS Internet connections and 114,000 net new FiOS Video customers, but Dolan insists he's not particularly impressed:
“Verizon, in our opinion, continues on a path of pursuing the destruction of their own capital.
Back in 2012 Cablevision employees in Brooklyn voted to unionize for the first time in the company's history
, a significant move given the fact that just 2-4% of cable technicians are unionized. The move resulted in a contentious fight between union employees and Cablevision executives that has raged ever since, with strikes, lawsuits over union claims about sub-par Cablevision service
, battles over Sandy refund robocalls
and the firing of union organizers
This week Cablevision sued the Communications Workers of America (CWA)
for defamation, stating the CWA claimed Cablevision fired a union employee over race and for "talking about slavery." Not so, says the suit, which claims the employee simply had a history of bad behavior:
According to the most recent suit, Cablevision claimed Thomson violated company policies in a number of instances, including showing up for work improperly dressed, refusing to accept a new company headset and throwing it on a desk in an aggressive manner, hitting a Cablevision building with a company vehicle and denting its garage doors with his ladder, sideswiping another Company vehicle in an avoidable accident.
After being issued a final warning in March, Thompson continued to violate policy, Cablevision claimed, including using a company phone for personal use – he allegedly racked up charges 25 times more than the average worker and used 4,303 minutes of talk time in April 2014, compared to the average worker’s 184 minutes of usage.
In a statement, the CWA called the Cablevision suit "frivolous" and claimed that Cablevision owner James Dolan was simply trying to "intimidate workers and their allies."
Netflix has thrown their support behind cities eager to build their own broadband without interference from incumbent ISPs and lobbyists. In a filing with the FCC
, Netflix argues that the FCC can and should over-rule states like Tennessee, North Carolina and elsewhere, which have allowed ISPs to literally write the state telecom laws prohibiting towns and cities from improving their own broadband networks -- even in cases where nobody else will.
A little more than a year ago, most of the large ISPs joined a new anti-piracy initiative crafted by the entertainment industry dubbed the Copyright Alert System. In CAS, users are given warning letters for copyright infringement as has long been industry practice, but ISPs will also give users a slap on the wrist for the behavior, ranging from brief filtering of websites (until users agree to receipt of "educational" material) to temporary throttling. story continues..
We've noted before
that Aereo's business plan was likely to face scrutiny by the US Supreme Court. The case, an appeal of a pro-Aereo decision by the 2nd U.S.
You might recall that Cablevision faced a long and hard battle against broadcasters, who tried to keep the company's network DVR from consumers by claiming it violated copyright. Cablevision ultimately won that fight after the Supreme Court
refused to hear their case, their network DVR recently going so far as to win an Emmy
Less than a week after Charter CEO Tom Rutledge publicly admitted that their current TV service offerings are rather crappy
, Charter has announced plans for a brand refresh for the company's broadband and TV services. Like AT&T U-Verse, Verizon FiOS, Comcast Xfinity, and Cablevision Optimum, Charter has announced they'll be re-branding the company's broadband and digital video services under the name "Spectrum" in the hopes of changing public perceptions.
Cablevision this week announced that the company now hosts more than 100,000 hotspots in the New York City tri-state region. That total has increased from 80,000 hotspots deployed as of last April, and up from from 35,000 that were deployed as of last June. Cablevision's decision to offer free Wi-Fi hotspots to paying customers as a competitive counterpunch to Verizon FiOS spurred the entire cable industry to follow suit; resulting the CableWiFi consortium (recently joined by Cox
) offering more than 170,000 hotspots. You can find a map of all of Cablevision's hotspots here
New Jersey Transit customers can look forward to a new project that will bring public Wi-Fi to New Jersey trains and train stations. According to the Newark Star Ledger
, NJ Transit has teamed with Cablevision to offer Wi-Fi at train stations -- mirroring the project that Cablevision has already embarked upon across New York City regional commuter zones. The networks should be up and running by the end of the year, and ultimately will be extended onto trains themselves -- an idea that Cablevision has been eyeing for several years. As with other Cablevision Wi-Fi, pricing will be "free" for paying Cablevision customers; pricing for non customers has yet to be disclosed.
Some Cablevision users in our forums
are complaining that the cable operator has started injecting ads on top of non-Cablevision website content. The ads, an image of which appear below, seem to be injected on top of any page a user visits.
John Malone has made a wager that Charter Communications will thrive in currently rough seas. According to Bloomberg
, Malone's Liberty Media will be taking a 27 percent stake in Charter for roughly $2.62 billion. As part of the deal, Liberty gets to assign four individuals to Charter's board of directors. After exiting bankruptcy in 2009, Charter has struggled with historically low customer satisfaction rankings, but is starting to see more positive cash flow under the watch of new CEO Tom Rutledge. Rutledge has been behind more than a few controversial moves of late, ranging from ceasing support of customer-owned modems
to shutting down their entire "UMatter2Charter" social and online support department
Numerous pay TV companies have thrown their support behind Cablevision, who earlier this week sued Viacom
, claiming the company violates antitrust law by forcing cable TV companies to buy channels in bundles. Mediacom, Time Warner Cable, DirecTV and others all issued statements supporting Cablevision
. "There's no question that the current all-or-nothing system dictated by programmers is completely broken," insisted DirecTV in a statement -- while Mediacom insisted forced bundling is "hurting consumers." Comcast, who now owns all of NBC after arguing such massive vertical integration isn't a problem for the end user, is remaining silent on the issue for obvious reasons.
Cablevision has filed suit against the Communications Workers of America, claiming the union has been making "patently false and defamatory claims" about the company's broadband services in New York City. According to a Cablevision statement
, the CWA has repeatedly made claims that Cablevision service is slower in Brooklyn than in other parts of the company's footprint.
I've been known to ding an ISP or two for stupid behavior, but everything I saw from a front row seat during hurricane Sandy suggested that every ISP in the impacted region handled Sandy aftermath with aplomb, kindness and efficiency. ISPs were one upping one another
seeing who could help out the most -- from mobile charging stations to automatic refunds and free voice and SMS service
Last week Cablevision announced that they would be issuing service credits to customers impacted by Hurricane Sandy
, even if their service was down due to a loss of power and not system damage. Not to be outdone, Verizon tells Broadband Reports
they'll be doing the same thing, something our readers may find useful as power returns to many areas impacted by the storm. "We routinely credit our customers when they’re out of service, whether for power outages or other reasons where service has been impacted," says Verizon. "We will of course do the same for those affected by Hurricane Sandy."
While Cablevision has yet to reveal how they plan to compete with Verizon's new "Quantum
" FiOS speeds up to 300 Mbps, Multichannel News
directs our attention to the fact that the cable operator is undergoing a branding refresh for their Optimum line of services. According to a press statement
the company is redesigning the logo (see above) and changing their brand for the first time in ten years. The new logo and branding will be immediately deployed "across all customer-facing platforms and executions" accompanied by a new suite of television ads." "Our new logo and branding campaign reflects our commitment to honesty, transparency, the quality of the services we provide and – importantly – how we interact with our customers." That's a pretty impressive resume for a little yellow dot.
During the company's earnings conference call this week (see transcript
), Cablevision CEO Jim Dolan said the company hopes to have their network DVR service available to all of the company's customers by the end of the year. After a long but successful legal battle against broadcasters, Cablevision quietly launched their network DVR service (aka the RS-DVR) back in January
in portions of The Bronx. The cable operator then expanded the service's footprint to portions of Brooklyn, Long Island and Connecticut. The service stores content at the network head end, eliminating the need for local storage on the DVR -- and Cablevision's currently offering test customers 160 GB of storage for $11 a month.
Last month Verizon raised the bar for residential broadband (and high prices) when they announced their new Quantum FiOS tiers
, which included a new top shelf 300 Mbps downstream, 65 Mbps upstream tier for $205 a month. Not to be outdone, sources tell Broadband Reports
that Comcast is planning to offer a 305 Mbps downstream tier sometime before the end of the year in FiOS markets.
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