Cablevision Puts Up Newsday's Paywall; But Really Just Using It As A Churn Reducer

from the that's-not-a-business-model dept

When Cablevision first bought Newsday, Charles Dolan admitted the company knew very little about the newspaper business, but promised to consult widely with newspaper experts in coming up with a plan. That seemed like a really really bad idea, since all the newspaper experts we've seen don't seem to even recognize what business they're really in. But, it looks like that's exactly what Dolan did. Back in February, the company announced that it was going to put up a paywall for its content. Since there had been no update or any action since then, I'd actually begun to wonder if the company was rethinking that idea. No such luck. Apparently it just took a bit of time to fully plan out Newsday's self-destruction.

The company has announced that it will start charging a whopping $5/week (not month, but week) to access the website unless you're an existing paper newspaper subscriber and/or a Cablevision subscriber.

Let's be absolutely clear what this is. It is not a plan to build a 21st century news organization. It's a plan to try to reduce churn elsewhere, by putting up a slight hurdle for Cablevision cable customers and Newsday newspaper customers to prevent them from leaving. Cablevision's customer base and Newsday's subscriber base overlaps quite a bit, so for plenty of those folks there will be no change at all. But this won't do anything to actually help the news organization grow. Those who don't subscribe to the paper edition or who use a competitor for broadband (like Verizon Fios which is pushing hard in Cablevision's market) will simply go elsewhere. While the NYC papers don't cover Long Island news quite as completely, they do a pretty good job with the basics, and other local news sources will fill in the rest. Cablevision is basically saying that it's giving up in the online news business. It's an admission that it doesn't know how to compete. This won't help it sign up new customers, and may only barely help it prevent old customers from leaving.

It's basically a suicide play for Newsday. This is really a disappointment, since Cablevision -- amazingly -- had actually been one of the most forward thinking cable companies out there in terms of offering real value on the broadband side of things. But apparently it bought Newsday as an asset to let it wither away.

Filed Under: long island, newspapers, paywall
Companies: cablevision, newsday

Long Island Continues To Be The Place To Be For Broadband

from the amazing dept

I left Long Island for Silicon Valley years ago, partly on the assumption that the cooler things were happening here. Yet, when it comes to broadband, that doesn't seem to be the case. I have had rather notorious problems getting broadband at home here over the years, despite living in the heart of Silicon Valley. Where I used to live (until a year and a half ago) I had one single broadband provider who provided absolutely terrible service. Where I am now, I do have two choices, but neither choice is compelling, and my speeds top out about about 1 Mbps. So... consider me a bit jealous of my parents back on Long Island who now have the opportunity to be among the first US homes to have 100 Mbps connections with no caps or meters.

A few years back, we noted how the battle between Cablevision and Verizon on Long Island had turned nasty, involving all sorts of underhanded tricks on both sides, but noted that the end result might actually be good for competitors, as it was one of the rare situations where the two competitors were actually investing in technology to top each other. So, while Verizon is offering FiOS connections, Cablevision is now rolling out those 100 Mbps using DOCSIS 3.0. The fight is still a bit nasty, with Verizon calling Cablevision's announcement nothing more than a parlor trick, but that's misleading itself. Cablevision has, no matter how you look at it, significantly increased the bandwidth available to home users.

Unfortunately, in most other areas (such as right here in the heart of Silicon Valley) it seems the focus is on seeing who can avoid being the "least worst" provider, rather than on pushing the boundaries forward. In a normal market, this would be a huge opportunity for a third provider to come into the market and offer much better service, but thanks to the structure of the broadband market, and quite a bit of regulatory capture, most folks are limited to just two choices. If only they'd start competing on quality like the two choices on Long Island...

Filed Under: broadband, competition, long island
Companies: cablevision, verizon