Dallas, Texas 06/24/2015 (Financialstrend) – Cablevision Systems Corporation (NYSE:CVC) has increased its maximum downstream speed from 15Mbps to 25Mbps as it moves to meet the needs of people watching videos online.The upgrade is part of the company’s promise of providing customers with better and faster data experience.
CVC Targeting Cord Cutters
Both new and existing customers stand to enjoy the new speeds at a monthly fee of $39.99. Cablevision Systems Corporation (NYSE:CVC) hopes that by boosting its speeds at no extra costs, it will make its offering more appealing to cord cutters.
The company also seeks to use the revamped speed package to set itself apart from regional competitor Verizon Communications Inc. (NYSE:VZ). Connectivity remains the company’s number one product as attention shifts to improving customer experience, crucial to retaining customers.
Future battles in the wireless space according to the company’s CEO, James Dolan, will be fought on broadband and not on TV. There are concerns in the industry that going forward, cable operators may be forced to stop selling video services and instead focus on the broadband business.
The company has already partnered with HBO for the new OTT service having also initiated plans to expand its Wi-Fi network to 1.1 million hotspots. Cablevision Systems Corporation (NYSE:CVC) efforts towards improving clients experience in terms of connectivity speeds has seen it rank near the top on the OTT monthly ISP speed index.
Cable Business On A Decline
The company already offers tiers with download speeds of 50 Mbps 75Mbps and 101 Mbps as it continues to flex its muscles against the big players in the business. Dolan expects the number of customers paying for traditional big bundle TV channels to shrink in the coming years
Big television networks have already lost millions of customers as most of them resort to streaming content online thanks to the fast internet speeds provided by the likes of Cablevision Systems Corporation (NYSE:CVC). The company has been forced to offer low-cost ‘cord-cutter’ packages as it tries to keep hold of its revenues from the cable business.