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Cablevision CEO Says Broadband is the Future of Television (CVC)

Cablevision Systems Corp. (NYSE: CVC) CEO, James Dolan, told The Wall Street Journal Friday that he believes “there could come a day” when broadband becomes the principle service of the company.

With CBS (NYSE: CBS) taking the extraordinary step of withholding online CBS content from Time Warner Cable (NYSE: TWC) Internet customers, including DirecTV (NASDAQ: DTV) subscribers who get their online content from Time Warner, as a negotiating tactic, it’s clear that at least one content provider knows where its future bread will be buttered.

The bottom line is that if a majority of cable operators quit offering TV service, content providers, like CBS, would have to sell direct to the public or through the Internet.

Dolan told the newspaper that in his own experience, his children prefer watching video content online through Netflix (NASDAQ: NFLX), via Cablevision broadband. This, he says, is the future of cable-TV – especially given the fact the industry is caught up in “package programming” that forces customers to accept channels they don’t want in order to get those they do.

As a result, Cablevision is investing heavily in network connectivity in anticipation of a future Dolan believes is not far away.

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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