Cablevision Systems CEO: Data Outperforms Video 7:1

Connectivity has become cable’s number 1 product, Cablevision Systems CEO James Dolan said, adding that as video margins dwindle, providing a speedy and reliable pipe to access content and other services will become essential to cable company survival. Doan said that data service outperforms video at his company by a 7-to-1 margin, and as high-speed Internet customers surpass video subscribers, operators have to shift the way they approach the business.

"Connectivity has really become our No.1 product. It’s no longer video. …That actually is a significant change to the model,” Dolan said. “We recognize that the connectivity experience we offer is going to be crucial to being able to keep the customer and be able to maintain margins and monetize.” Dolan pointed to Cablevision’s Wi-Fi service, currently available through more than 100,000 public hotspots in its service territory and more than 1.2 million when residential routers are included. He added that customers regularly use the Wi-Fi service to cut down on data usage on their cell phone plans, a benefit that Dolan said the industry needs to better communicate to customers.