WHEN: Today, Wednesday, May 6th
WHERE: CNBC's "Fast Money Halftime Report"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Cablevision CEO James Dolan on CNBC's "Fast Money Halftime Report" (M-F, 12PM-1PM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000377071 and http://video.cnbc.com/gallery/?video=3000377300.
All references must be sourced to CNBC.
SCOTT WAPNER: TOP CABLE EXECUTIVES TODAY MEETING IN CHICAGO AT THE INTERNET AND TELEVISION EXPO. JOINING US RIGHT NOW IN A RARE INTERVIEW FOR A CNBC EXCLUSIVE IS CABLEVISION'S CEO JAMES DOLAN. HE IS ALSO THE EXECUTIVE CHAIRMAN OF MADISON SQUARE GARDEN, OWNS THE KNICKS AND THE RANGERS, HE IS WITH OUR JULIA BOORSTIN NOW, AS WE SAID, EXCLUSIVELY. GUYS, I'LL SEND IT OUT TO YOU.
JULIA BOORSTIN: THANKS SO MUCH, SCOTT. JIM, THANKS SO MUCH FOR JOINING US TODAY. NOW WE WERE JUST ON STAGE I INTERVIEWED YOU ON A PANEL HERE AND YOU SAID YOU WERE VERY INTERESTED IN M&A CONSOLIDATION IN YOUR AREAS WHERE CABLEVISION OPERATES. THAT SENT CABLEVISION STOCK JUST SHOOTING HIGHER, ABOUT 6%, WHAT DO YOU PROPOSE HERE?
JAMES DOLAN: WELL, THE CONCEPT THAT I PUT FORWARD IS ESSENTIALLY THAT NEW YORK OPERATE AS YOU KNOW, AS ONE CABLE OPERATION. THERE ARE SEVERAL OPERATORS IN NEW YORK. SO CONSOLIDATION IS MORE THAN OBVIOUSLY THAN ONE COMPANY, BUT THE POINT WAS BASICALLY, RATHER THAN THE FOCUS HAS BEEN FOR BIG LARGE COMPANIES TO GET TOGETHER RIGHT AND TO YOU KNOW, OPERATE THAT WAY, THAT IF WE FOCUSED ON THE MARKETS, I THINK THAT WOULD BRING MORE TO THE CONSUMER AND I THINK IT WOULD MAKE THE BUSINESSES MORE VALUABLE.
BOORSTIN: SO HAVE YOU BEEN HAVING CONVERSATIONS WITH ROB MARCUS, CEO OF TIME WARNER CABLE?
DOLAN: TODAY AT THE PANEL IS THE FIRST TIME I'VE SEEN HIM IN MONTHS.
BOORSTIN: SO WHAT ARE YOUR PLANS TO PUT THIS INTO ACTION? I MEAN, TIME WARNER CABLE SEEMS LIKE A NATURAL DANCE PARTNER HERE.
DOLAN: LOOK, IT'S LIKE ANYTHING ELSE. WE'RE INTERESTED, THEY'D HAVE TO SEE THE VALUE IN IT, TOO. I'M SURE I'LL TALK TO THEM ABOUT THE VALUE OF IT. BECAUSE I THINK IT'S THERE. I THINK WE CAN PROVE IT AND WE'LL SEE WHAT HAPPENS.
BOORSTIN: YOU FACE A LOT OF OVERLAP WITH FIOS, WHICH IS OWNED BY VERIZON. DO YOU NEED THIS SCALE? DO YOU NEED TO MERGE WITH ANOTHER CABLE COMPANY TO COMPETE?
DOLAN: NO, WE'RE DOING JUST FINE. BUT WHAT WE'RE SEEING IS BECAUSE OF THE INNOVATION THAT REALLY HONESTLY THE COMPETITION HAS BROUGHT US, THAT THERE'S A LOT MORE OPPORTUNITY IN THE MARKET AND PARTICULARLY WHEN YOU PUT THE WHOLE MARKET TOGETHER.
BOORSTIN: SCOTT YOU WANT TO JUMP IN HERE?
WAPNER: I WOULD. MR. DOLAN, IT'S GREAT TO HAVE YOU ON THE HALFTIME SHOW TODAY. I'M SURE YOU HEARD CARLY FIORINA'S COMMENTS YESTERDAY. SHE, OF COURSE, JOINING THE GOP RACE. SHE'S SAYING SHE WOULD LIKE TO ROLL BACK THE MOST RECENT NET NEUTRALITY RULING. OTHER CABLE CEOs HAVE SPOKEN OUT AGAINST IT. OTHERS IN THE GOP LIKELY WOULD TRY AND DO THE SAME. I WOULD LIKE TO HEAR FROM YOU PUBLICLY ON WHAT YOU THINK ABOUT THE RULING, WHAT YOU'D LIKE TO SEE DONE AS A RESULT OF ALL OF IT?
DOLAN: OKAY. I'M NOT REALLY BOTHERED TO BE HONEST BY THE NET NEUTRALITY RULINGS. THAT'S THE WAY WE'VE ALWAYS OPERATED. AND THAT'S THE WAY WE PLAN ON CONTINUING TO OPERATE. AND AS FAR AS I CAN TELL, THAT'S WHAT THE CONSUMER WANTS. SO I'M A BIG BELIEVER IN THE CAPITALIST SYSTEM AND THAT THE CONSUMER WILL ULTIMATELY GET WHAT THEY WANT. ONE WAY OR ANOTHER. SO I WANT TO BE THERE FRONT LINE TO GIVE IT TO THEM. I DON'T THINK THOSE RULES APPLY.
WAPNER: YOU DON'T HAVE A PROBLEM WITH WHAT SOME WOULD CALL OVERREGULATION OF YOUR BUSINESS?
DOLAN: I DON'T THINK THE BUSINESS NEEDS THE REGULATION, BUT THAT'S NOT WHAT I SEE AS THE INHIBITING FACTORS IN HOW I BUILD MY BUSINESS.
BOORSTIN: YOU HAVE MADE A NUMBER OF CHANGES RECENTLY. WHICH SEEM TO BE EMBRACING CORD CUTTING. YOU EVEN HAVE A CORD CUTTING PACKAGE WHICH INCLUDE AS DIGITAL ANTENA.
DOLAN: YES, RIGHT.
BOORSTIN: WHAT KIND OF SUCCESS HAVE THESE PACKAGES HAD SO FAR?
DOLAN: WELL, IT'S VERY, VERY EARLY ON THE CORD CUTTING PACKAGE. AND THAT IS ESSENTIALLY TARGETED TO THE CONSUMER WHO IS TELLING US THAT THEY'RE NOT GOING TO SPEND SIX OR SEVEN HOURS A DAY IN FRONT OF THEIR TELEVISION SET, THEY'RE GOING TO SPEND MAYBE AN HOUR, MAYBE TWO HOURS A DAY IN FRONT OF THEIR TV SET. AND WHEN THEY GET THERE, THEY'RE GOING TO WANT TO WATCH EXACTLY WHAT THEY WANT. THEY'RE GOING TO WATCH "GAME OF THRONES," THEY ARE GOING TO WATCH WHATEVER THEIR SERIES IS, ET CETERA. AND THEY'RE AGNOSTIC AS TO WHETHER THEY GET IT THROUGH THE INTERNET, ET CETERA AND THE CORD-CUTTERS PACKAGE IS SORT OF TARGETED TOWARDS THEM.
BOORSTIN: SPEAKING OF "GAME OF THRONES." YOU'RE THE FIRST CABLE OPERATOR TO PACKAGE HBO NOW WITH BROADBAND.
DOLAN: RIGHT.
BOORSTIN: IT HAS BEEN ABOUT A MONTH. HOW IS IT GOING?
DOLAN: IT'S STILL TOO EARLY FOR THAT. YOU KNOW, WE'RE JUST MARKETING IT NOW. AND THERE'S NOT RESULTS THAT WOULD BE SIGNIFICANT.
BOORSTIN: BUT YOU'RE ALSO JUST ANNOUNCED YOU'RE GOING TO BE PACKING HULU WITH BROADBAND. DO YOU THINK ALL OF THESE PACKAGES TARGETING CORD-CUTTERS ARE GOING TO DRIVE SOME ACTUAL CORD-CUTTING FROM YOUR OTHER SUBSCRIBERS?
DOLAN: I THINK THAT INSIDE THE MARKETPLACE THERE'S A DESIRE BY A PORTION, NOT A LARGE – NOT NECESSARILY A LARGE PORTION, BUT I'VE SAID THOSE KINDS OF CONSUMERS, PARTICULARLY MILLENNIALS, THAT ARE NOT SPENDING A TON OF TIME IN FRONT OF THEIR TV SET AND DON'T NEED BIG, HUGE BUNDLES OF CHANNELS IN ORDER TO SATISFY THEIR TELEVISION VIEWING NEEDS. THOSE ARE THE PEOPLE THAT YOU KNOW THAT CORD-CUTTING SORT OF WORKS FOR. AND REALLY CORD-CUTTING IS JUST ANOTHER WAY OF SAYING, GETTING THE PROGRAMMING I WANT WHEN I WANT IT.
BOORSTIN: SCOTT.
WAPNER: MR. DOLAN WERE YOU AGAINST OUR PARENT COMPANY, COMCAST, DOING THAT DEAL WITH TIME WARNER CABLE?
DOLAN: NO. NOT AT ALL. I DON'T UNDERSTAND WHY THE DEAL DIDN'T GO THROUGH. I BELIEVE THAT THERE'S PLENTY OF COMPETITION OUT THERE. AND YOU KNOW, I DON'T HAVE AN EXPLANATION FOR WHY IT DIDN'T HAPPEN. I CERTAINLY WAS NOT AGAINST IT.
WAPNER: I MEAN, I'M JUST WONDERING, SO IF THAT – BECAUSE THAT DEAL IS NOT HAPPENING, IT DOES POTENTIALLY LEAVE MORE OPTIONS ON THE TABLE FOR A COMPANY LIKE YOURS, WHICH MANY HAVE SPECULATED WOULD BE THE APPLE OF SOMEBODY'S EYE.
DOLAN: I LIKE BEING THE APPLE OF SOMEBODY'S EYE. AGAIN, IT COMES BACK TO WHAT I SAID BEFORE. THERE'S A LOT OF OPPORTUNITY INSIDE OF CONSOLIDATING THE MARKETPLACES. AND IN PARTICULAR, THE ONE I KNOW BEST IS NEW YORK. WHETHER THAT'S YOU KNOW, WITH ONE COMPANY OR TWO COMPANIES AND WHO THAT IS, I THINK THAT IF YOU BELIEVE IN THAT OPPORTUNITY, YOU'RE GOING TO BE DRAWN TO IT AND YOU'RE GOING TO EXECUTE TO IT AND SO I DON'T WORRY ABOUT THAT.
BOORSTIN: NOW LOOKING AT YOUR OWN BUSINESS, YOU'VE BEEN KEEPING YOUR REVENUE GROWTH ON TRACK BY RAISING PRICES AND EARNING MORE PER SUBSCRIBER, RATHER THAN ADDING SUBSCRIBERS. HOW LONG ARE THOSE PRICE INCREASES SUSTAINABLE?
DOLAN: ACTUALLY, IT'S NOT JUST PRICE INCREASES. THERE IS SOME PRICE INCREASES IN IT. BUT WE'VE BEEN FOCUSING HARD ON OUR SERVICE. I THINK OUR SERVICE HAS IMPROVED MARKEDLY. AND ALSO IN HOW WE TREAT OUR CUSTOMERS IN TERM OF PROMOTIONS, ET CETERA. WE'RE NOT FIGHTING A PROMOTIONAL WAR WITH FIOS AND ESSENTIALLY WHEN SOMEONE CALLS US UP AND WANTS THEIR THIRD PROMOTION, WE SAY WE'RE SORRY, YOU HAVE TO PAY THE REGULAR PRICE. AND WHAT THAT IS DOING IS ACTUALLY RAISING THE AVERAGE REVENUE PER SUBSCRIBER BECAUSE WE'RE NOT SO DEEPLY DISCOUNTING.
BOORSTIN: NOW, I KNOW WE'RE ALMOST OUT OF TIME HERE, BUT I WOULD BE REMISS IF I DIDN'T ASK ABOUT ISIAH THOMAS, WHO YOU JUST APPOINTED TO RUN THE LIBERTY. NOW, A LOT OF PEOPLE ARE SCRATCHING THEIR HEADS. WHY DID YOU BRING HIM BACK?
DOLAN: YOU KNOW WHAT, I AM SO PLEASED BY EVERYONE'S INTEREST IN THE NEW YORK LIBERTY. I CAN'T WAIT TO SEE THEM ALL AT THE GAME. I KNOW ISIAH IS LOOKING FORWARD TO PUTTING A GREAT TEAM ON THE FLOOR AND I HOPE EVERYBODY COMES TO SEE THAT.
WAPNER: MR. DOLAN, LET ME JUMP IN. I KNOW YOU'RE WEARING A RANGERS PIN. THEY'RE PLAYING THE WASHINGTON CAPITALS OBVIOUSLY IN PLAYOFFS. BUT YOU MUST HAVE KNOWN THAT THE ISIAH NEWS WAS GOING TO DRAW A LOT OF INTEREST AND FRANKLY CONTROVERSY IN NEW YORK CITY. IT IS ON ALL OF THE PAPERS TODAY. THE POST SAYING CAN'T MAKE THIS UP. BUT REALLY, WHY DID YOU MAKE THE MOVE? KNOWING IT WOULD BE CONTROVERSIAL.
DOLAN: THE NEW YORK LIBERTY AND THE WNBA, I DON'T THINK IT'S A BIG SECRET, THEY ARE NOT AS POPULAR AS WE NEED THEM TO BE. THEY NEED – AND PARTICULARLY THE LIBERTY NEED TO BE A GREAT BASKETBALL TEAM AND THEY NEED TO WIN. SO I LOOKED AROUND TO SEE WHO COULD GIVE ME A WINNER. AND NUMBER ONE ON MY LIST FOR SOMEONE WHO WOULD DO THAT JOB WAS ISIAH THOMAS AND SO, I WENT FOR IT. I DID NOT PAY ATTENTION TO, YES, ALL THE CONTROVERSY I KNEW WOULD BE THERE. I'M USED TO LIVING IN CONTROVERSY. SO IT DIDN'T BOTHER ME.
BOORSTIN: NOW, WE'RE OUT OF TIME BUT I HAVE TO ASK, DO YOU THINK THE RANGERS HAVE WHAT IT TAKES TO WIN THIS YEAR?
DOLAN: YES, I DO. I BELIEVE.
BOORSTIN: THANK YOU SO MUCH FOR JOINING US, WE REALLY APPRECIATE IT.
DOLAN: YOU'RE WELCOME.
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