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Article

Title: Cable's Niche Player

Author: Heilemann, John Article Type: Company
Source: Business 2.0, v7 n4 p36(2) Publication Date: May 2006
  ISSN: 1080-2681
  Illustrations: Photographs, Charts
URL of Publication: http://www.business2.com

Josh Sapan is the chief executive officer of Rainbow Media, the programming sector of New York's Cablevision Systems. He always wanted to be in the television business, but he believes it is unproductive for cable channels to look for the largest possible audiences. He has focused his energies for the past 30 years on the concept of narrowcasting. This is an idea whose time has finally come, as the cable industry is experiencing a period of major change prompted by advances in technology. Video-on-demand, HDTV, DVRs, iPods, and YouTube technologies have created panic in the mainstream television industry because they represent fragmentation of the mass audience. Sapan is not afraid of fragmentation, and he is taking his philosophy and applying it to Rainbow Media's plans. Sapan has always believed that narrowcasting offers the opportunity for diverse programming. Companies like Rainbow can either repurpose their old material or create new content that is customized for the new and emerging television platforms. Sapan bases his actions on three core concepts: 'brands rule, niches rock, and new format require new types of programming.' While it is too early to determine the success of Sapan's approach for Rainbow Media, the initial signs are promising. The company's video-on-demand offerings are becoming very popular, for example.

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