... and now this -- just last week Cablevision not only accepted this OTT/unbundling new world order, it openly embraced it. In a remarkable turn of events, Cablevision CEO Kristin Dolan announced new stripped down, affordable OTT programming packages targeting both "cord cutters" and "cord nevers" (yes, she used those terms -- as did the official Cablevision press release). With that one announcement, Cablevision acknowledged -- on behalf of the entire cable/satellite television world -- that the times have changed ... and will never be the same again. Make no mistake, Cablevision's announcement is a watershed event -- absolutely, positively, full stop. Just think about how much has changed in such an incredibly short period of time. THAT's what this represents.
And, amidst Cablevision's "cord cutter"/"cord never" announcement, its press release left a subtle -- yet hugely important -- strategic clue about how the company (and other major cable companies) now think of themselves amidst this reality. Specifically, Cablevision defined itself -- its words -- as being "a connectivity company." Not a content/programming services company -- rather, a "connectivity company."
Why is this important? Because it represents an open acknowledgment that Cablevision recognizes that its future (and present) business model is broadband-focused -- rather than content-focused. And, that's not all bad -- in fact, it can be quite good/smart -- because broadband services generate significantly higher margins than content/programming pay TV package services. In other words, providing the "pipes" in which that content flows can be -- and is -- extremely lucrative, especially when the thirst for ever-broader "pipes" is accelerating in this increasingly video streaming and hungry world.
The times, they are a changin' -- and already have changed -- indeed!