Cablevision

Cablevision Systems Corporation
Company type	Public
Industry	Cable television, telecommunications
Founded	1963; 63 years ago
Founder	Charles F. Dolan
Defunct	June 21, 2016
Fate	Acquired by Altice USA
Headquarters	Bethpage, New York, United States
Area served	New York metropolitan area, New Jersey, Connecticut, Pennsylvania
Key people	Charles Dolan (Chairman), James Dolan (CEO)
Products	Cable television, high-speed Internet (Optimum Online), digital cable TV (Optimum TV/IO Digital Cable), VoIP telephone service (Optimum Voice), Freewheel mobile WiFi service
Number of employees	13,656 (2015)

Cablevision Systems Corporation was a U.S.-based cable television provider primarily serving the New York metropolitan region. It held the position of the fifth-largest cable operator and ranked ninth among television providers nationwide. Although its services once extended across 19 states, Cablevision eventually concentrated its efforts on customers located in New York, New Jersey, Connecticut, and select areas of Pennsylvania.

Under the Optimum brand, the company offered a range of services including high-speed Internet access (Optimum Online), digital cable television (Optimum TV/IO Digital Cable), and Voice over IP telephone service (Optimum Voice), positioning it as the eighth-largest telephone service provider in the country. Additionally, Cablevision introduced a mobile service called Freewheel, which operated exclusively via WiFi.

In 2014, Cablevision generated revenues totaling $6.461 billion and reported operating income of $921.25 million. As of September 2015, the company employed 13,656 individuals. Founded by entrepreneur Charles F. Dolan, Cablevision maintained its headquarters in Bethpage, New York, with Charles Dolan serving as chairman and James Dolan as CEO.

On June 21, 2016, European telecommunications giant Altice completed its acquisition of Cablevision. The company's services have since continued under Altice USA, preserving the Optimum Online, Optimum Voice, and Optimum TV brands.

History

During the mid-1960s, Charles Dolan established Sterling Manhattan Cable in Manhattan and was instrumental in launching Home Box Office (HBO). After selling both ventures to Time Life Inc., he utilized the proceeds to create CableVision in suburban Long Island. The company quickly grew by purchasing smaller cable systems and constructing networks throughout the New York metropolitan area, including parts of New Jersey, Westchester County, and Connecticut.

In the 1980s, Cablevision expanded its operations to cities such as Chicago, Boston, and Cleveland. By the mid-1990s, it served approximately 2.9 million subscribers across 19 states. Strategic transactions in the late 1990s enabled Cablevision to focus on three primary markets—New York, Cleveland, and Boston—while increasing its subscriber base to 3.5 million. A significant agreement with Tele-Communications Inc. (TCI) transferred ownership of 10 cable systems in the New York area to Cablevision in exchange for TCI acquiring a 33% stake; this ownership interest later passed to AT&T Corporation following its acquisition of TCI in 1999. In 2000, Cablevision divested its cable systems outside New York—in Boston, Cleveland, and Kalamazoo—to MediaOne, Adelphia, and Charter Communications respectively; this included swapping Boston assets for MediaOne's Hudson Valley systems. AT&T relinquished its Cablevision stake in 2001.

On June 13, 2010, Cablevision announced a $1.37 billion purchase of Bresnan Communications, thereby extending its reach into Colorado, Montana, Utah, and Wyoming—its first expansion beyond New York markets in ten years. In May 2011, Bresnan was rebranded as Optimum West.

Cablevision sold Optimum West to Charter Communications for $1.63 billion on February 8, 2013. Later that year, the company undertook restructuring measures resulting in layoffs affecting approximately 400 employees.

On September 17, 2015, European telecommunications firm Altice, led by Patrick Drahi, announced plans to acquire Cablevision for $17.7 billion including debt obligations. Following regulatory approvals from the FCC on May 3, 2016 and subsequent regional authorities, the transaction closed on June 21, 2016. Altice paid $34.90 per share—a premium of 22%—and assumed responsibility for Cablevision’s outstanding debt. Since then, Cablevision’s operations have been integrated into Altice USA.

Involvement in the West Side Stadium Controversy

During 2004 and 2005, Cablevision financed a campaign opposing the West Side Stadium proposal in Manhattan, which was supported by New York City Mayor Michael Bloomberg. The stadium, primarily designed for the New York Jets and a crucial element of NYC’s bid for the 2012 Olympics, competed against Cablevision’s higher offer for the Metropolitan Transportation Authority-owned site. Ultimately, the project was abandoned in June 2005 after the New York State Assembly, under Speaker Sheldon Silver’s leadership, refused to approve state funding.

Charitable Activities

Cablevision co-established The Lustgarten Foundation in 1998, which has grown into the largest private foundation in the United States dedicated exclusively to pancreatic cancer research. Named after former Cablevision chairman Marc Lustgarten, the foundation has generated more than $16 million in funds. Cablevision covers all administrative expenses, guaranteeing that every donation directly supports research initiatives and grant programs. The foundation also organizes fundraising events nationwide and holds a prestigious 4-star rating from Charity Navigator for its transparency and operational efficiency.

The Madison Square Garden Company

In 1994, Viacom acquired Paramount Communications, the then-owner of Madison Square Garden, and subsequently sold MSG assets to Cablevision and ITT Corporation, each acquiring a 50% stake. Three years later, ITT divested its share to Cablevision.

On February 9, 2010, Cablevision separated Madison Square Garden, L.P. into an independent entity named The Madison Square Garden Company (MSG), led by Cablevision CEO James Dolan. Dolan maintained significant influence over both companies until Cablevision’s sale in 2016 and continues to serve as MSG’s chairman. MSG is structured into three primary divisions: professional sports franchises, two regional sports networks, and entertainment venues.

MSG owns the iconic Madison Square Garden arena in New York City along with its resident teams—the New York Knicks (NBA) and New York Rangers (NHL). The company also owns the Hartford Wolf Pack, a minor league affiliate of the Rangers.

Through MSG Network, MSG Plus (previously FSN New York), and MSG Western New York, MSG controls broadcast rights for teams such as the Knicks, Rangers, New York Islanders, New Jersey Devils, Buffalo Sabres, and New York Red Bulls. Formerly, Cablevision held broadcasting rights to the New York Yankees, New Jersey Nets, and New York Mets before those franchises launched their own dedicated channels. Additionally, Cablevision sought ownership interests in the Yankees, Mets, and Boston Red Sox to secure control over their media rights.

Other assets owned by MSG include the Beacon Theatre and The Theatre at Madison Square Garden (formerly known as Felt Forum), along with a long-term lease agreement to operate Radio City Music Hall.

AMC Networks

On July 1, 2011, Cablevision spun off its subsidiary Rainbow Media LLC into an independent company now known as AMC Networks. AMC Networks owns several prominent national cable channels such as AMC, IFC, Sundance Channel, and WE tv. The channel Wedding Central, which launched in 2009 as a WE tv spin-off, was discontinued following AMC Networks’ separation due to poor viewership. Rainbow Media also managed Fuse TV until 2010 when control shifted to Cablevision’s Madison Square Garden division—currently operating as The Madison Square Garden Company. Rainbow Media previously operated the satellite service Voom until its shutdown in 2005; however, its high-definition channels under Voom HD Networks continued on Cablevision and iO digital cable until January 2009 before being discontinued because of limited distribution ahead of AMC Networks’ spin-off.

SportsChannel

From its founding in 1976 until its integration into Fox Sports Net during the late 1990s, Cablevision held ownership of the former SportsChannel America. In 2007, Cablevision divested FSN Bay Area and FSN New England to Comcast for $570 million, thereby concluding its involvement with regional sports networks outside the New York metropolitan region.

Other properties

In 1998, Cablevision purchased the New York-based electronics retailer The Wiz, which ceased operations in 2003. Subsequently, the brand was acquired by P. C. Richard & Son and currently exists as a dormant subsidiary offering select Wiz Deals.

Cablevision maintained ownership of the New York-area movie theater chain Clearview Cinemas from 1998 until April 29, 2013, when it was sold to Bow Tie Cinemas.

On July 29, 2008, Cablevision completed the acquisition of Newsday and amNewYork for $650 million. The Dolan family preserved majority control of Newsday, while Altice USA held a 25% equity stake until these media assets were sold in 2023.

MSG Network

Between September 1988 and July 1989, Cablevision refrained from carrying MSG Network—then owned by Gulf+Western and later Paramount Communications—due to disagreements regarding whether MSG should be offered as a basic or premium channel. This dispute coincided with New York Yankees broadcasts moving from Cablevision-owned SportsChannel to MSG. Cablevision’s strategy aimed to ensure that sports content was funded solely by subscribers interested in such programming rather than all subscribers. The disagreement concluded with MSG being provided as a premium subscription service.

YES Network

During YES Network’s inaugural season in 2002, Cablevision initially declined to carry most New York Yankees games due to pricing conflicts. Cablevision advocated for YES to be classified as a premium channel, whereas YES’s ownership sought inclusion on the basic 'Family Cable' tier. After extended negotiations, an agreement was reached the following year placing YES, MSG, and Fox Sports NY on the 'Family Cable' tier, thereby broadening their audience reach.

NFL Network

Cablevision did not offer NFL Network until 2012, citing a preference to also provide NFL Sunday Ticket—a DirecTV exclusive until 2022—before adding NFL Network to its lineup. This position attracted criticism from legislators in New Jersey. Following Cablevision’s acquisition of Bresnan Communications in the Rocky Mountain area (now Optimum West), NFL Network became available there but remained unavailable in the Greater New York market. On August 16, 2012, Cablevision announced it had reached an agreement to carry both NFL Network and NFL RedZone across all its systems starting August 17, enhancing its sports programming offerings.

Tennis Channel

From October 2009 through September 2011, Cablevision included the Tennis Channel within a premium sports package distributed via the NCTC. After the Tennis Channel’s contract with NCTC expired, it withdrew its signal from providers that declined broader carriage negotiations. Verizon reinstated the channel in January 2012; however, as of mid-2012, Cablevision had not resumed carrying the Tennis Channel.

ESPN3 and WatchESPN

Initially, Cablevision did not provide ESPN’s broadband platform ESPN3 (formerly ESPN360.com) or the WatchESPN application that enables remote streaming of ESPN networks. On October 4, 2012, an agreement was reached between Cablevision and ESPN granting access to ESPN3, WatchESPN, and additional Disney network apps. Subsequently, ESPN3 became accessible to Optimum Online subscribers in November 2012, followed by availability of WatchESPN for Optimum TV customers in December 2012.

Verizon FiOS

During a carriage conflict involving Verizon's FiOS platform, Cablevision—then the proprietor of MSG Network and associated Madison Square Garden assets—disputed the distribution of MSG and Fox Sports Net New York channels. Verizon accused Cablevision of limiting access to local sports broadcasts featuring NHL and NBA franchises in an effort to maintain its cable market dominance. The two parties reached a settlement in November 2006, permitting FiOS to carry these channels. However, MSG content remained available only in standard definition until a court ruling mandated high-definition broadcasts for the 2011-12 seasons.

Additionally, Cablevision possessed exclusive rights to MSNBC within its coverage area, preventing FiOS from offering the channel until this exclusivity lapsed in February 2010.

January 2010: Dispute over Food Network and HGTV

In January 2010, Cablevision lost the ability to distribute HGTV and Food Network following a retransmission fee disagreement with Scripps Networks Interactive. Cablevision criticized Scripps’ negotiation tactics and launched a campaign urging viewers to pressure Scripps for the channels' reinstatement. This included airing commercials, displaying a public service announcement repeatedly on affected channels, and redirecting set-top boxes to channel 1999 where the message was also broadcast. The conflict was resolved by January 21, 2010, when both networks were restored; however, the financial terms were not publicly revealed.

March 2010: ABC contract dispute impacting WABC-TV and WPVI

On March 2, 2010, WABC-TV (New York) and WPVI (Philadelphia) announced intentions to withdraw their programming from Cablevision by March 7 unless a new compensation agreement was reached. Cablevision criticized ABC-Disney for what it described as imposing an additional "TV tax" despite the stations being freely available over-the-air.

The blackout coincided with the 82nd Academy Awards, negatively affecting advertisers and Cablevision’s viewer base. Beginning March 7, both stations were removed from the lineup, replaced by black screens and continuous public service announcements on channel 1999. Cablevision directed subscribers to access ABC programming online via platforms such as Hulu and offered complimentary on-demand movies as compensation.

Negotiations progressed during the Oscars broadcast, leading to the return of WABC and WPVI by 8:50 pm that evening.

October 2010: FOX and MyNetworkTV dispute involving WNYW-TV, WWOR-TV, and WTXF-TV

Cablevision’s contract with News Corp for carrying FOX (including MyNetwork TV) expired on October 15, 2010. This affected stations such as WNYW, WWOR-TV in New York, WTXF in Philadelphia, along with cable channels like National Geographic Wild, Fox Business, and Fox Deportes. Key programming impacted included NFL on Fox, the 2010 National League Championship Series, part of the 2010 World Series, and popular series like American Idol and Glee.

At midnight on October 16, Fox removed all contested channels from Cablevision’s service, causing subscribers to miss several new episodes and major sports events. Cablevision responded by airing public service announcements on affected channels continuously and redirecting set-top boxes to channel 1999 with identical messaging. On October 27, Cablevision proposed a one-year contract extension, which Fox rejected, prolonging the blackout. Cablevision also requested binding arbitration; however, Fox declined this option.

The channels were reinstated on October 30 during Game 3 of the World Series after News Corp and Cablevision reached a tentative agreement. Although specific terms were not disclosed, Cablevision confirmed it accepted higher fees demanded by Fox to ensure customers regained access to critical programming.

Game Show Network

In February 2011, Cablevision shifted the Game Show Network (GSN) from its basic programming tier to a supplementary sports package. By October of the same year, GSN initiated legal action against Cablevision, accusing the provider of discriminatory practices for prioritizing its own channels (AMC Networks) that remained accessible on the basic tier. Subsequently, in November 2016, a Federal Communications Commission administrative law judge determined that Cablevision (later Altice) had violated regulations. The judge recommended that the FCC mandate Cablevision to reinstate GSN to the expanded basic tier and imposed a penalty capped at $400,000.

Tribune Company dispute

On August 17, 2012, Cablevision unexpectedly removed Tribune Company stations such as WPIX (New York), WPHL (Philadelphia), WCCT (Hartford), and KWGN (Denver) from its service lineup. In response, Tribune withdrew WTIC-TV and WGN America from select Cablevision systems. During this period, these channels were substituted with alternative content.

Cablevision contended that Tribune and its hedge fund investors—including Oaktree Capital Management and Angelo Gordon & Co.—were demanding exorbitant fees amid Tribune’s bankruptcy proceedings. Conversely, Tribune maintained it had proposed an unconditional renewal without fee increases and highlighted its substantial investments in local news and programming efforts. Additionally, Tribune pointed out that Cablevision had never paid retransmission fees for its widely viewed local stations, with the proposed charges amounting to less than one cent per subscriber per day.

The dispute concluded on October 26, 2012, after Cablevision reached a new carriage agreement following customer complaints over missing the initial two games of the 2012 World Series. The affected channels were reinstated on October 27.

Meredith Corporation dispute

On January 3, 2014, WFSB—the CBS affiliate serving Hartford, Connecticut—was removed from Cablevision’s Connecticut systems amid a payment disagreement with Meredith Corporation, the station’s owner. Cablevision declined to pay for service in Fairfield and Litchfield Counties, citing coverage availability from New York’s WCBS-TV. This conflict was resolved by January 19.

Corporate governance

At the time of the acquisition by Altice, Cablevision’s board comprised prominent executives and members of the Dolan family: Charles Dolan, James Dolan, Patrick Dolan, Kristin Dolan, Marianne Dolan Weber, along with Rand Araskog, Frank Biondi, Charles Ferris, Richard Hochman, Victor Oristano, Thomas Reifenheiser, John R. Ryan, Brian Sweeney, Vincent Tese, and Leonard Tow.

Following an unsuccessful attempt in 2005 to spin off Rainbow Media as a publicly traded entity, the Dolan family sought to privatize Cablevision in 2006. On May 2, 2007, they announced plans for a $10.6 billion buyout to take the company private; however, consensus among all shareholders was not achieved. Prior to privatization efforts, Cablevision’s shares were listed on the New York Stock Exchange under the ticker symbol CVC.

Financial records

On November 11, 2003, Cablevision revealed inaccuracies in its financial statements and restated results for quarters earlier that year due to approximately $15 million in expenses that had been improperly recorded in prior periods. By March 2004, these restatements were broadened to include annual financials covering 2000 through 2002. These revisions affected reported revenues and overall financial outcomes.