Cablevision 2013 Annual Report Download - page 27

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We face significant risks as a result of rapid changes in technology and consumer expectations and
behavior.
The telecommunications services industry has undergone significant technological development over time
and these changes continue to affect our business. Such changes have had, and will continue to have, a
profound impact on consumer expectations and behavior. Our video business faces technological change
risks as a result of the continuing development of new and changing methods for delivery of
programming content such as Internet based delivery of movies, shows and other content which can be
viewed on televisions, wireless devices and other developing mobile devices. A proliferation of delivery
systems for video content can adversely affect our ability to attract and retain subscribers and the demand
for our services and it can also decrease advertising demand on our delivery systems. Our high-speed
data business faces technological challenges from rapidly evolving wireless Internet solutions. Our voice
service offerings face technological developments in the proliferation of voice delivery systems including
those based on Internet and wireless delivery. If we do not develop or acquire and successfully
implement new technologies, we will limit our ability to compete effectively for subscribers, content and
advertising. In addition, we may be required to make material capital and other investments to anticipate
and to keep up with technological change. These challenges could adversely affect our business.
Programming costs of our cable television systems are increasing and we may not have the ability to
pass these increases on to our subscribers. Disputes with programmers can adversely affect our
relationship with subscribers and lead to subscriber losses.
Programming costs paid by our cable television systems are one of our largest categories of expenses.
These costs have increased rapidly and are expected to continue to increase, particularly with respect to
costs for sports programming and broadcast networks. We may not be able to pass programming cost
increases on to our subscribers due to the increasingly competitive environment. If we are unable to pass
these increased programming costs on to our subscribers, our operating results would be adversely
affected.
We attempt to control our programming costs and, therefore, the cost of our video services to our
customers by negotiating favorable terms for the renewal of our affiliation agreements with programmers.
On certain occasions in the past, such negotiations have led to disputes with programmers that have
resulted in temporary periods where we were not carrying a particular programming service or services.
Such disputes may inconvenience some of our subscribers and can lead to customer dissatisfaction and, in
certain cases, the loss of customers.
The financial markets are subject to volatility and disruptions, which have in the past, and may in the
future, adversely affect our business, including by affecting the cost of new capital, our ability to
refinance our scheduled debt maturities and our ability to meet our other obligations as they come due.
The capital and credit markets experience volatility and disruption. At times, the markets have exerted
extreme downward pressure on stock prices and upward pressure on the cost of new debt capital and have
severely restricted credit availability for most issuers.
Market disruptions in the past were accompanied by a broader economic downturn, which led to lower
demand for our products, such as cable television services, as well as lower levels of television and
newspaper advertising, and increased incidence of customers' inability to pay for the services we provide.
A recurrence of those conditions may further adversely impact our results of operations, cash flows and
financial position.
We rely on the capital markets, particularly for offerings of debt securities, as well as the credit markets,
to meet our financial commitments and liquidity needs. Disruptions and/or volatility in the capital and
credit markets could adversely affect our ability to refinance on satisfactory terms, or at all, our scheduled
debt maturities and could adversely affect our ability to draw on our revolving credit facilities.