July 24, 2008

MSO Comeback Executive of the Year: Rocco B. Commisso, Chairman and CEO, Mediacom

"It's Rocco's year" is a familiar phrase among cable executives. It's hard to disagree.

With the Sinclair debacle behind him, Commisso and Mediacom are roaring. After bleeding basic subs since 2005, Mediacom reported a modest gain of 2,000 subs in the 2008 first quarter. Revenue rose 10% to $340 million, cash flow was up 17% and shares soared 20%. For Commisso personally, the rewards were a $510,000 cash bonus late in March and the chance to co-chair NCTA’s Cable Show ’08 in New Orleans. Below, Commisso reflects on Mediacom’s financial prowess, The Big Ten Network and New Orleans.

CableFAX: The Magazine: As co-chair of The Cable Show, you visited schools and homeless shelters during Cable Cares Day. What sticks with you from that intense day?

Rocco Commisso: The little kids [at Banneker Elementary School]. Just watching those kids and, frankly, knowing some of them won’t have the same opportunities that some other kids in America will have — it’s shameful. I can only hope they’ll be as lucky as I’ve been.

Rocco Commisso (at right) joins Cable Show co-chair Debra Lee of BET and NCTA chief Kyle McSlarrow for Gospel Music Channel and Cox’s delivery of instruments, school supplies and food to children and families still suffering from Hurricane Katrina on the eve of The Cable Show in New Orleans, May 17, ’08.

CFTM: To what do you attribute Mediacom’s strong Q1?

RC: Part of it is that we had the Sinclair [retrans] situation a year before. But even taking that away, we had record cash flow growth and decent revenue. And over a period of time we haven’t been hit with issues, either God-made or from the competition. Also, from 2001-2008 we have spent $2 billion in capital expenditures on our assets and consequently on our customers. Seems that all the investments we have made are starting to come through.

CFTM: And you’ve added 27,000 digital video subs, 30,000 broadband subs and 19,000 phone customers.

RC: Yes, it’s the triple play, which in my opinion, is a phenomenal value for the consumer. It’s the consumer voting with his pocketbook. For $90 they’re getting video, access and phone. Compared to what I’m paying and what you’re probably paying, it’s a great value. It’s also the people. We’ve hired over 1,400 new employees on a net basis in the last seven years. We’re giving back to our customers the fruits of our investment. We’re also trying to do a better job on customer service.

CFTM: What is one thing that concerns you about the competition?

RC: By far the top, top, top thing — and it has always been this, I’ve done enough speaking on it — is that the competition has no problem going to the government and asking for help where we haven’t.

CFTM: Does the Comcast-Big Ten deal give you hope that Mediacom can forge an agreement with Big Ten?

RC: I don’t know the details of the deal, but it might be similar to what we offered them more than a year ago. [Comcast reportedly will pay 70 cents/sub to Big Ten, which had sought $1.10, the AP says.] Now they look like they might be more flexible. I’m sure we’ll be talking to them again.

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