Subcriber question: Tell me again why we are shorting Cablevision…
Subscriber question:
Tell me again why we are shorting Cablevision.
Here are some links and quotes from past columns of mine about why I think the Cablevision business model is doomed:
http://www.codywillard.com/the-cable-companies-are-doomed-by-the-app-revolution/
Do you realize that even if you watched TV twelve hours a day, 7 days a week, that you’d still only be consuming 84 hours out of the 33,600 hours of programming that you’re paying for (200 channels*24 hours a day*7 days in a week)? Do you think those economics make any sense? Or do you think that as the App Revolution technologies advance, and companies like Google and Apple and Microsoft, all of which have tens of billions of dollars of net cash on their balance sheets, create the platforms for us to “flip” channels/programs/networks/form-factors on our devices that we (or advertisers) pay for on a model that is 1-to-1 rather than 84-to-33,600 makes more sense?
Or here:
http://www.ft.com/cms/s/2/306e9b70-18c4-11db-b02f-0000779e2340.html#axzz1RLtSd9yD
Then there is the distribution side of the equation. Distributors who hit critical mass and remain agnostic on content have condemned traditional forms of distribution to secular decline. This means Google and Apple, but not Yahoo, which foolishly creates its own content to push on its users. All the cable networks, the newspapers, the cinemas and the radio stations have lost secular growth. All these models are dying.