Cablevision Systems Corp. won’t detail what its new direct-broadcast
satellite service will look like until it supposedly launches Oct. 1, but
chairman Chuck Dolan insisted that the company will really launch the satellite
service, which will compete with cable operators, rather than selling the
"There are not a lot of optimists around for what we’re doing. We hope to
earn a little more support as we go along. But we have spent more than a decade
preparing for this, really. And we certainly did not do that with the idea that
we were going to build a satellite and then sell it," Dolan said.
Cablevision launched the $250 million Rainbow 1 bird that will run the
service Thursday night.
While Wall Street remains skeptical about Dolan’s satellite plan, Cablevision
said it expects Rainbow DBS to count 1 million subscribers -- and hit breakeven
-- before the company has invested $1 billion in it.
By the end of the year, Cablevision will have burned $900 million on the DBS