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| Cablevision Systems Corp. |(CVC – NYSE) |$25.21* |

Note: This report contains substantially new material. Subsequent reports will have changes highlighted.

Reason for Report: 3Q09 Earnings Update

Prev. Ed.: September 15, 2009; News Update.

Brokers’ Recommendations: Positive: 71.4% (10); Neutral: 28.6% (4 firms) Prev. Ed.: 7; 7; 0

Brokers’ Target Price: $27.85 (↑ $3.22 from last edition; 13 firms) Brokers’ Avg. Expected Return: 10.5%

Note: Flash Update: 3Q09 Earnings Update (11/03/09)

*Note: Though dated November 14, 2009, share price and broker material are as of November 10, 2009.

Note: The tables below for Revenue, Margins, and Earnings per Share contain fewer broker material than the broker material used in the Valuation table. The extra figures in the Valuation table come from reports that did not have accompanying spreadsheet models.

Portfolio Manager Executive Summary

Cablevision Systems Corporation (CVC or the Company) is a leading telecommunications, media, and entertainment company. The Company’s portfolio of operations includes a full suite of advanced digital television, voice, and high-speed Internet services, world-renowned entertainment showplaces, professional sports teams, and popular national and regional programming networks.

Out of 14 firms, 10 provided positive ratings (71.4%) on the stock while the rest (4 firms) assigned positive ratings (28.6%). None of the analysts had a negative rating on the stock.

Positive or equivalent (10/14 firms or 71.4%): Target prices range from $25.00-$35.00. These analysts maintained a positive outlook on the stock encouraged by CVC’s relatively strong sub metrics and the absence of a competitive pricing war. The analysts believe CVC’s positives are: 1) near-term catalyst in MSG spin with upward revisions to consensus free cash flow (FCF) estimates expected, 2) best value in Pay-TV trading at a post MSG spin price, 3) best operating MSO (Multiple System Operator) with most valuable cable assets in the U.S. and 4) a solid levered Cable equity play with accelerating FCF going to either debt reduction or capital returns (i.e. dividend), both of which accrue to CVC shareholders. Further, these analysts believe that the Company is uniquely positioned to drive stronger free cash flow growth than the rest of the industry, given its ability to reduce capital expenditure and tight clustering leading to scale economies. Moreover, these analysts consider CVC to have the most tightly clustered and profitable subscriber base in the U.S. and a strong network of assets with industry-leading penetration. Also, most of the analysts are encouraged about the potential spinoff of MSG, and expect an improved credit market post settlement. Most of these analysts based their valuation on FCF, sum-of-the-parts, or DCF analysis.

Neutral or equivalent (4/14 firms or 28.6%): Target prices range from $21.00-$26.00. Even though the cautious analysts see CVC as risky, they consider CVC to be potentially more rewarding among the U.S. cable equities. These analysts also note that the fundamentals are improving for CVC as Verizon slows down its FiOS footprint build-out and shifts its focus to other markets. Further, these analysts are concerned about the increasing telco competition and weak US economy. They believe that though the fact that MSG spin is positive for the Company, it is a signal to a potential sale of Cablevision’s cable business. Thus, these analysts prefer to remain on the sidelines for the time being. Most of these analysts based their valuations on sum-of-the-parts or DCF analysis.

November 10, 2009

Recent Events

On November 3, 2009, Cablevision Systems Corp. announced its 3Q09 financial results. Key highlights are as follows:

Net revenues increased 5.3% to $1,839.9 million in 3Q09 from $1,747.6 million in 3Q08.

• Consolidated adjusted operating cash flow (AOCF) increased 14.7% to $667.7 million in 3Q09 from $582.3 million in 3Q08.

• Operating income increased 32.2% to $381.6 million in 3Q09 from $288.6 million in 3Q08. GAAP net income was $98.9 million or $0.33 per diluted share in 3Q09 versus $30.9 million or $0.10 per diluted share in 3Q08.

On October 9, 2009, CVC announced a comprehensive content carriage agreement under which Cablevision will continue to carry CBS programming and offer Showtime Networks' programming to Cablevision's three million subscribers in New York, New Jersey and Connecticut.

On October 7, 2009, CSC Holdings, Inc., a subsidiary of Cablevision Systems Corporation, announced the final results of its previously announced cash tender offers for up to $975 million aggregate purchase price of the senior notes, the tender for which expired on October 6, 2009.

On September 29, 2009, CVC announced the appointment of David Ellen as the Company’s executive vice president and general counsel.

On September 23, 2009, CVC announced that it closed an offering of $900 million in aggregate principal amount of 8.625% Senior Notes due 2017 at an issue price of 98.6%.

Overview

The analysts identified the following investment considerations for prospective investors:

|Key Positive Arguments |Key Negative Arguments |

|Positive AOCF: Cable segment continues to grow and management expects |Increased Competition: The Company is facing increased competition from |

|mid-teens revenue and adjusted operating cash flow (AOCF) growth. |Verizon’s video service, as well as from the new entrants in the data |

| |segment (BPL). |

|Diverse Growth: CVC is leading the way for the rest of the cable industry |Board of Directors: CVC’s Board of Directors and senior management are at |

|to lever telephony and a value package to drive growth across all product |odds over the Company’s future direction. |

|lines. | |

|MSG Spinoff: Spinoff from MSG is seen as key catalyst for CVC. |RGU Losses: The analysts believe accelerating Revenue Generating Units |

| |(RGU) losses remain a cause of concern. |

Cablevision Systems Corporation (CVC or the Company) is one of the nation's leading entertainments and telecommunications companies over 4.8 million homes in New York City and its suburbs. As of September 30, 2009, it had 3.07 million basic video customers, 2.52 million high-speed data customers, and 2.00 million telephone customers. Its cable television operations serve three million households in the New York metropolitan area. The Company's advanced service offerings include: Interactive Optimum digital television, Optimum Online high-speed Internet, Optimum Voice digital voice-over-cable, and its Optimum Lightpath integrated business communications services. Cablevision operates several successful programming businesses, including AMC, IFC, Sundance Channel and WE tv, through Rainbow Media Holdings LLC, and serves the New York area as the publisher of Newsday and other niche publications through Newsday LLC. In addition to these businesses, Cablevision owns Madison Square Garden and its sports teams, the New York Knicks, Rangers, and Liberty. The Company also operates New York's famed Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, and owns and operates Clearview Cinemas. Cablevision Systems is headquartered in Bethpage, New York.

Its website is .

Note: CVC’s fiscal year ends on December 31.

November 10, 2009

Revenue

Net revenue was $1,839.9 million in 3Q09 versus $1,747.6 million in 3Q08, up 5.3% y/y, reflecting solid revenue growth in Telecommunications Services and Rainbow. As per the Zacks Digest model, revenue was $1,840.0 million in 3Q09, an increase of 6.1% from $1,734.8 million in 3Q08.

Net additions of revenue generating units (RGU) in 3Q09 were 10,477 in 3Q09 versus 10,178 in 3Q08 and 10,465 in 2Q09.

Average monthly revenue per basic video customer was $141.03 in 3Q09 as compared to $133.11 in 3Q08 and $139.69 in 2Q09.

Segment Revenue as per the Company

Telecommunications

The segment comprises the Cable Television and Lightpath business. The cable television business includes basic video, interactive digital video, high-speed data, voice over Internet protocol (VoIP), and residential telephone services, as well as provision of commercial telephone and high-speed data services. The Lightpath business includes branded, fiber-delivered commercial data, and voice services.

Net revenue increased 4.9% y/y to $1,362.0 million in 3Q09 from $1,298.7 million in 3Q08 driven by the growth in digital video, high-speed data, and voice customers, as well as higher rates reflected in 3Q09. As per the Zacks Digest model, net revenue trended up 5.0% to $1,362.0 million in 3Q09 from $1,298.8 million in 3Q08.

Cable television’s net revenue increased 4.5% y/y to $1,303.1.0 million in 3Q09, attributable to the growth in digital video, high-speed data, and voice customers, as well as higher rates.

One firm (Citigroup) remains impressed at Cablevision’s ability to thwart Verizon’s efforts to make a significant dent in Cablevision’s customer base.

Lightpath’s net revenue increased 3.8% y/y to $65.1 million in 3Q09, driven by the continued expansion of Ethernet services coupled with the impact of the acquisition of 4Connections in October 2008.

Rainbow

The segment consists of National Programming services – AMC, IFC, and WE TV, as well as Other Programming, which include Sundance, News 12 Networks, VOOM HD Networks, Lifeskool, Sportskool, IFC Entertainment, Rainbow Network Communications, Rainbow Advertising Sales Corp., and other Rainbow ventures.

Rainbow’s net revenue increased 3.5% y/y to $260.1 million in 3Q09 from $251.4 million in 3Q08. As per the Zacks Digest model, net revenue moved up 3.5% y/y to $260.1 million in 3Q09 from $251.3 million in 3Q08.

AMC/IFC/WE TV’s net revenue increased 11.4% y/y to $206.2 million in 3Q09 while other programming net revenue decreased 17.2% to $60.2 million in 3Q09. The increase in net revenue was driven primarily by the addition of Sundance (acquired in June 2008), partially offset by the impact of the discontinuation of the domestic programming business at VOOM HD on 2009 results.

One firm (Citigroup) continues to be optimistic about the prudent investments that Mr. Rutledge is making in ground-breaking technologies like the network DVR and in-region WiFi network. It believes the former should reduce capital intensity and the latter should help Cablevision retain its significant lead in market share over telco broadband alternatives (including DSL and FiOS).

Madison Square Garden (MSG)

The segment’s primary businesses include: MSG Network, FSN New York, the New York Knicks, the New York Rangers, the New York Liberty, MSG Entertainment, the MSG Arena complex, Radio City Music Hall, Beacon Theatre, and the Chicago Theatre.

Net revenue increased 0.6% y/y to $161.8 million in 3Q09 from $160.8 million in 3Q08. MSG’s third quarter results were impacted by: 1) MSG Media, including a $10.7 million increase in revenues due to higher network affiliation fees as well as a $6.3 million decrease in operating costs. 2) MSG Entertainment, including a $9.8 million decrease in revenues offset by a $5.9 million decrease in event-related variable costs primarily due to fewer entertainment events in the Madison Square Garden Arena. 3) Lower legal and other professional fees of $8.9 million. As per the Zacks Digest model, net revenue decreased 2.3% to $161.9 million in 3Q09 from $158.2 million in 3Q08.

One firm (Citigroup) agrees with the plan to spin off Madison Square Garden because it believes that though the assets have significant real estate value and historical sports teams, they simply have not generated significant free cash flow. As such, the investment attributes of these assets are orthogonal to the cash flow centric story at the cable division. And it believes the decision to renovate MSG following a failed attempt to reach an agreement with Vornado is a positive attempt by the Company.

Newsday

The Newsday segment consists of Newsday, a daily newspaper that primarily serves Long Island; amNewYork, a free daily serving New York City; various Internet properties including , and Star Community Publishing.

Net revenue was $79.9 million in 3Q09 as compared to $73.5 million in 3Q08. As per the Zacks Digest model, revenue was $80.0 million in 3Q09 as compared to $73.2 million.

Others (Including Eliminations)

Net revenue increased to ($23.9) million in 3Q09 versus ($37.3) million in 3Q08. Excluding eliminations, revenues decreased 17.2% to $60.2 million in 3Q09 primarily due to discontinuation of the domestic programming business at VOOM HD and the sale of VOD services (Lifeskool and Sportskool) in 3Q09. As per the Zacks Digest model, net revenue was ($23.9) million in 3Q09 versus ($36.9) million in 3Q08.

Outlook

One firm (BofA Merrill Lynch) made the following adjustments to its forecasts: 1) increased cable revenue to $5.318 billion (+3% y/y) from $5.296 billion (+3% y/y) and 2) reduced its Rainbow revenue estimate to $1.116 billion (+8% y/y) from $1.130 billion (+10% y/y).

Provided below is a summary of revenue as compiled by Zacks Digest:

|Revenue ($MM) |

|Positive |71.4%↑ |

|Neutral |28.6%↓ |

|Negative |0.0% |

|Median Price Target |$28.00↑ |

|Digest Low |$35.00 |

|Digest High |$21.00↑ |

|Avg. Target Price |$27.85↑ |

|No. of Analysts with Target Price/Total |13/14 |

Risks associated with target price primarily include competition from DBS and telco providers, higher-than-expected capital spending, and investments in non-core initiatives, shareholder control, and decreased visibility on management’s business strategy.

The current management effectiveness metrics for the Company are as follows:

|Metrics (TTM) |Company |Industry |S&P 500 |

|Return on Assets (ROA) | (1.16%) ↑ |1.09%↑ |3.62% ↑ |

|Return on Investment (ROI) | (1.61%) |1.44%↑ |4.94%↑ |

|Return on Equity (ROE) |NM |-7.47%↓ |8.71%↓ |

Capital Structure/Solvency/Cash Flow/Governance/Other

Cash Flow

Consolidated adjusted operating cash flow (AOCF*) increased by 14.7% y/y to $667.7 million in 3Q09. AOCF of Telecommunications Services grew 12.6% y/y to $575.0 million in 3Q09. The AOCF includes favorable adjustments of $25.7 million relating to the resolution of regulatory and legal matters at Cable. Excluding the impact of these items, the growth in AOCF was 10.3% in 3Q09. At 3Q09 end, consolidated free cash flow from continuing operations was $623.0 million.

At Cable Television, AOCF growth was 7.3% (excluding adjustments) y/y in 3Q09. At the Rainbow division, AOCF growth was 37.8% in the quarter compared to the prior-year period. At Madison Square Garden, AOCF growth was 151.5% y/y in 3Q09.

(*Adjusted operating cash flow (AOCF) is defined as operating income (loss) before depreciation and amortization (including impairments), excluding share-based compensation expense or benefit and restructuring charges or credits.)

One firm (Kaufman Bros.) is positive about the spin out of MSG, which it feels will further positively impact the FY2010 free cash flow estimates by approximately $200 million.

Free cash flow in 3Q09 was $219.0 million, up from $130.0 million in 3Q08, driven by an 18% drop in capex to $204 million. Capex was down primarily as a result of lower cable CPE (Customer Premises Equipment) capex indicating that the build out of the outdoor portion of the WiFi network was largely completed, ahead of schedule and 15% below budget, signaling further declines.

Capital Expenditure

Capital expenditure was $204.3 million in 3Q09 versus $249.9 million in 3Q08.

Potential MSG Spinoff

Management anticipates closing the MSG spin near December 31, 2009. MSG has 40 new marketing partners for the Knicks and Rangers and has launched its signature partner program tied to the MSG renovation with Delta Airlines, the official airline of Madison Square Garden. One firm (Wunderlich) believes it is a positive step for removing the capital burn albatross from CVC shares and expects the management to provide a new capital expenditure estimate (revised from $500 million) for the upgrade program prior to the spin.

The Board of Directors of CVC authorized the Company’s management to file the appropriate documents with the Securities and Exchange Commission and the IRS to formally pursue a tax-free spinoff of its Madison Square Garden business. It is anticipated that the spinoff would take the form of a distribution to all shareholders of Cablevision, with holders of Class A common stock receiving Class A shares in Madison Square Garden and holders of Class B common stock receiving Class B shares in Madison Square Garden. James Dolan would become Executive Chairman of Madison Square Garden and would continue in his present role as President and CEO of Cablevision. Hank Ratner would become President and CEO of Madison Square Garden, and would remain Cablevision’s Vice Chairman. Completion of the spinoff is subject to numerous conditions and all required regulatory approvals, including receipt of a ruling from the IRS and final approval of the Cablevision Board of Directors. The Company hopes to complete this transaction by the end of 4Q09.

November 10, 2009

Potentially Severe Problems

There are none other than those discussed in the other sections of the report.

November 10, 2009

Long-term Growth

A long-term growth rate, as projected by two analysts (Wells Fargo Securities; Collins Stewart) is 6.0% (↑ from the previous average of 5.0%).

The analysts believe that subscriber growth and new additions will continue to trend upward in the coming years. As a consequence, operating cash flow is estimated to grow in the mid teens over the next few years. Analysts further believe that the Company will continue to show signficant operational improvement in the future, given its industry-leading penetration rates and strong momentum in subscriber additions. However, looking ahead, the analysts believe the Company will face increased competition in the video and data segments from new entrants and new rival products, particularly from Verizon.

CVC’s strong execution and attractive relative valuation are positive catalysts for the stock, but there is uncertainty over the Company's strategy to reinvest cash into new 'growth' opportunities, such as wireless and other businesses, as well as the expected increase in competition from Verizon over the next three years.

Over the long term, CVC is well positioned to eventually attain higher returns than its peers, attributable to 1) its fully-upgraded plant with almost all customers taking digital, 2) scale efficiencies due to its tight clustering, and 3) high-income demographics allowing for substantial ARPU growth.

One firm (Hudson Square) believes while CVC does not have sizeable debt maturities until April 2011, the Company is still levered in a volatile capital market environment.

Despite the fact that newspapers are suffering from the weak US economy and technological shifts, leading to decline in readership and a resulting drop in advertising, CVC expects its purchase of Newsday to create various synergies.

November 10, 2009

Upcoming Events

On December 4, 2009, CVC will pay a quarterly dividend of $0.10 per share on each outstanding share of both its Cablevision NY Group Class A Stock and its Cablevision NY Group Class B Stock, to stockholders of record at the close of business on November 13, 2009, as declared by the Board of Directors on November 2, 2009.

Individual Analyst Opinions

POSITIVE RATINGS (71.4%)

Collins Stewart – Buy ($35.00 – target price) – 11/03/09: The firm reiterated a Buy rating with a target price of $35.00.

Gabelli – Buy (no target price) – 11/04/09: The firm maintained a Buy rating with no specific target price. INVESTMENT SUMMARY: The firm continues to look favorably upon the MSG separation as it believes it will be a security investment in the MSG renovation and other venues and will pave the way for additional strategic transactions including a sale of Rainbow and eventually the telecom assets.

Kaufman Bros. – Buy ($29.00 – target price) – 11/03/09: The firm upgraded its rating to Buy from Hold and increased its target price to $29.00 from $28.00. INVESTMENT SUMMARY: The firm believes the MSG spinoff is on track for year end and believes it would prove to be a catalyst for upside in the coming years.

Wunderlich – Buy ($28.00 – target price) – 11/04/09: The firm maintained a Buy rating and increased its target price to $28.00 from $27.00.

Bernstein – Buy ($28.00 – target price) – 11/07/09: The firm maintained a Buy rating and a price target of $28.00.

BofA Merrill Lynch – Buy ($33.00 – target price) – 11/04/09: The firm maintained a Buy rating and a price target of $33.00. INVESTMENT SUMMARY: The firm considers CVC to have the most tightly clustered and profitable subscriber base in the U.S., focused on wealthy New York metro area suburbs. Also, it has strong network assets, with industry-leading penetration rates resulting in the lowest capex/revenue of any major operator, which it believes places the Company at the cusp of a very significant acceleration in cable free cash flow. It added that cash distributions, including proceeds from the potential sale of Rainbow programming assets, should unlock value for shareholders.

Citigroup – Buy ($25.00 – target price) – 11/04/09: The firm reiterated a Buy rating and the target price of $25.00. INVESTMENT SUMMARY: The firm is optimistic on the solid financials of the Company and closure of MSG spin out.

Deutsche Bank – Buy ($30.00 – target price) – 11/03/09: The firm maintained a Buy rating and increased its target price to $30.00 from $26.00. INVESTMENT SUMMARY: The firm believes the MSG spinoff will be an important catalyst (scheduled pre-year end), which will (1) unburden CVC from MSG’s renovation capex; (2) clarify MSG’s value; (3) simplify CVC; and (4) represent a meaningful improvement in corporate governance.

MorganStanley– Overweight ($28.00 - target price) – 11/03/09: The firm upgraded its rating to Overweight from Equal Weight and increased its target price to $28.00 from $22.00. INVESTMENT SUMMARY: The firm believes CVC is well-positioned to benefit from stronger pricing in broadband and high confidence in FCF estimates for CVC versus peers. The firm views the expected spin out of MSG as a potential catalyst to drive interest amongst investors.

Wells Fargo Securities – Outperform ($29.00 – target price) – 11/03/09: The firm maintained an Outperform rating and raised the target price range to $28.00 - $30.00 from $27.00-$29.00, with an average target price of $29.00. INVESTMENT SUMMARY: The firm believes that CVC possesses industry-leading penetration and ARPU among its various services. It views CVC as having the most fundamental upside and believes FCF should improve subsequent to the planned MSG spin.

NEUTRAL RATINGS (28.6%)

Hudson Square – Hold ($21.00 - target price) – 11/03/09: The firm maintained a Hold rating and a target price of $21.00. INVESTMENT SUMMARY: Despite the fact that MSG spin is a likely signal to a potential sale of Cablevision’s cable assets it continues to believe the likelihood of an acquisition is limited in the short and medium term given Time Warner Cable’s public commentary disavowing interest in a deal and Comcast management likely being wholly focused on their NBC acquisition.

Barclays Capital – Equal Weight ($26.00 - target price) – 11/04/09: The firm reaffirmed an Equal Weight rating and increased its target price to $26.00 from $25.00. INVESTMENT SUMMARY: The firm continues to view the MSG spinoff as a potential positive and expects the shares to show the benefit of leverage to equity returns.

Goldman – Neutral ($24.00 - target price) – 11/03/09: The firm reiterated a Neutral rating and increased its target price to $24.00 from $23.00. INVESTMENT SUMMARY: The firm expects the shares to react positively to the announcement of the MSG spinoff. However, the firm sees limited upside to the stock.

UnionBankSwitz. – Neutral ($26.00 – target price) – 11/04/09: The firm reiterated a Neutral rating with a price target of $26.00.

NEGATIVE RATINGS (0.0%)

None

|Research Associate |Ankita Mitra |

|Copy Editor |Pushpanjali B. |

|Content Ed. |Neha Poddar |

|No. of brokers reported/Total |14/14 |

|brokers | |

|Reason for Update |Earnings |

-----------------------

Zacks Research Digest

November 14, 2009

Research Associate: Ankita Mitra, MBA.

Editor: Deepa Agarwal, , M.Fin.

Sr. Editor: Ian Madsen, CFA: imadsen@ ; 1-800-767-3771; x9417

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