letter to shareholders 2003

4.4 million homes passed

BY YEAR-END 2003, CABLEVISION HAD CHARTED A COURSEfor the company’s future. After years of dedicated development, we complet-

ed the rebuild of our extensive broadband network, creating one of the best

and most advanced telecommunications systems in the world. This accom-

plishment makes Cablevision one of the only companies able to offer all its

innovative services to every customer in its footprint.

The completion of our rebuild also brings to an end an era of significant cap-

ital investment. Now, we are able to turn our full attention and resources to

producing steady returns by making incremental investments in revenue-

generating services. Today, Cablevision’s customer bundle includes the

company’s new Optimum Voice digital voice-over-cable service, as well as

our iO: Interactive Optimum digital video and Optimum Online high-speed

Internet services, both of which grew at impressive rates in 2003.

Solidifying Cablevision’s role as a leading provider of high-definition (HD)

programming this past year was Rainbow DBS’s launch of VOOM, a televi-

sion satellite service to meet the demands of today’s rapidly growing, but

underserved, HDTV audience.

We also began laying the groundwork for new investment opportunities for

our shareholders. In late October, we unveiled a plan to create two distinct

companies, each with defined business plans and clear investment charac-

teristics. Remaining with Cablevision will be the telecommunications and

Lightpath businesses, as well as our New York assets, including Madison

Square Garden. Comprising the new entity will be: Rainbow DBS; three of

Rainbow Media’s national entertainment services – AMC, IFC (The

Independent Film Channel) and WE: Women’s Entertainment; and certain

other Rainbow businesses. With the spin-off expected to be completed later

this year, we look forward to offering two compelling investment choices that

reflect the sound strategic position of Cablevision and this newest combina-

tion of Rainbow assets.

Cablevision is committed to delivering value to consumers and shareholders

alike as we continue to shape the industry and secure our future with digital

offerings, while capitalizing on the many opportunities that lay ahead.

Dear Shareholders

3

Con

sum

er S

ervi

ces

There’s only one New York, and

Cablevision is serving it better than

ever. Now, 4.4 million homes in the

New York metropolitan area have

complete access to Cablevision’s

portfolio of services over our new

40,000-mile fiber-rich network.

These advanced, integrated offer-

ings simplify life for busy New

Yorkers as they communicate in

the nation’s most demanding and

attractive business and entertain-

ment marketplace.

In 2003, our telecommunications

services division, which includes

the company’s analog and digital

video, high-speed data, voice and

Lightpath commercial telecommu-

nications businesses, capitalized

on the success of our superior

network, recording a 12 per-

cent increase in net revenue.

Meanwhile, the total combined

number of video, data and voice

customers, or revenue-generating

units (RGUs), was 4.9 million, up

25 percent from 2002.

Today, more than 30 percent of

our cable customers receive digi-

tal services, compared with only 7

percent a year ago. This has

helped to make Cablevision’s

iO: Interactive Optimum digital

video offering the fastest-growing

service in the company’s history.

Ending 2003 with 905,000 cus-

tomers, four times as many as at

the end of 2002, iO now offers

customers access to a wide array

of networks and powerful new

technologies, including: 700 titles

of video-on-demand (VOD) con-

tent available at all times; 14 HD

programming services, featuring

the industry’s first and only HD

VOD offering; groundbreaking

interactive applications; and inter-

national programming options,

such as iO en Español, the indus-

try's most comprehensive slate of

Spanish-language networks.

Another Cablevision success story,

our Optimum Online (OOL) high-

speed Internet offering continues to

be one of the fastest and most reli-

able broadband services in the

nation. OOL ended 2003 with 1.1

million customers, up 37 percent

from year-end 2002. The service also

saw its industry-leading penetration

rate of homes-passed increase to 24

percent by year-end 2003.

Cablevision Service Areas

NASSAU

WESTCHESTER

FAIRFIELD

ROCKLAND

ORANGE

NEW YORK

NEW JERSEY

CONNECTICUT

ULSTER

DUTCHESS

PUTNAM

LITCHFIELD

NEW HAVEN

PASSAIC

BERGEN

ESSEX

HUDSON

MORRIS

SUSSEX

WARREN

SOMERSET

MIDDLESEX

OCEAN

MERCER

UNION

MONMOUTH

QUEENS

BRONX

NY

BROOKLYN

STATEN ISLAND

SUFFOLK

Three out of four people in Cablevision’s footprintwho subscribe to a high-speed data service areOptimum Online customers.

4

Business Products

Completing the bundle – and cap-

italizing on the strong consumer

demand for a competitive and

reliable voice service – is

Cablevision’s newest product,

Optimum Voice. Introduced in the

fall and now available across our

entire service area, Optimum

Voice attracted 29,000 cus-

tomers by year-end 2003 as we

The Academy ofTelevision Arts & Sciencesawarded iO a 2003technical Emmy® forOutstanding Achievementin Interactive Television.

became the first cable operator

to offer a competitive VoIP serv-

ice throughout our footprint.

Given Optimum Voice’s ease of

use and low cost, we expect cus-

tomer numbers to climb signifi-

cantly in 2004 with the introduc-

tion of new calling features.

Also holding strong, especially in

the face of lingering softness in

the telecommunications sector,

was Lightpath, which reported a

13 percent increase in net revenue

in 2003. Cablevision’s business

telephony and data division also

recorded a 10 percent rise in the

number of buildings on net this

past year.

5

By year-end 2004,Cablevision's nationallyrecognized educationalinitiative, Power toLearn, will bring theInternet to more than2,100 schools andlibraries in the company’sservice area whilestrengthening the home-school connection withpowertolearn.com, whichprovides educationalcontent and tools to

teachers, students andparents throughout theNew York area.

Lightpath’s networkdemonstrated incredibleresilience on August 14,maintaining full systemavailability for all customersfor the duration of the EastCoast blackout.

Now available to more than 4 million homes-passed in theNew York metropolitan area, Optimum Voice offers unlimitedcalling across the United States and Canada, and five popularcalling features for the low, flat monthly rate of $34.95.

Continuing to play an important

role in New Yorkers’ lives are

Cablevision’s entertainment ven-

ues, sports teams, and local and

regional programming networks.

Billboard’s 2003 "Venue of the

Year," Madison Square Garden,

attracted more than 4 million visi-

tors to hundreds of events this past

year, including the 45th annual

Grammy Awards, the

Rolling Stones’ HBO con-

cert special and The

Z-100 Jingle Ball. In

August 2004, “The

World’s Most Famous

Arena” will host the first

Republican National

Convention ever

held in New

York City.

6

Madison Square Gardenremained the world’s pre-mier entertainment venue in2003, hosting hundreds ofmemorable events, includingThe Simon & GarfunkelReunion and Chris Rock’s

“Black Ambition Tour.”

VJs Marianela Pereyra andDennis Da Menace withOutkast’s Andre 3000 and BigBoi at Fuse’s new street-frontstudio in midtown Manhattan.

Also at the Garden, and

leading the NBA in ticket

revenue for the 12th straight

year, the “new” New York

Knicks welcomed two-time

all-star Stephon Marbury,

basketball luminary Isiah

Thomas and the NBA’s all-

time winningest coach

Lenny Wilkens, while the

Rangers added top scorer Jaromir

Jagr for the 2003-2004 season.

Meanwhile, the Liberty remained

No. 1 in ticket revenue, with atten-

dance among the top in the WNBA.

Radio City Music Hall also had a

banner 2003, as more than 1.4 mil-

lion visitors passed through its turn-

stiles to attend an array of shows,

including the 20th Anniversary of

the MTV Video Music Awards, the

Tony Awards and a run of sold-out

performances of Sinatra: His Voice.

His World. His Way, the first official

live theatrical stage production

featuring the crooner’s image,

voice and work. Meanwhile, the

Radio City Christmas Spectacular

and world-famous Rockettes con-

tinued to attract audiences across

the country, and A Christmas Carol

celebrated a successful 10th and

final season.

Also making news in 2003 was

Fuse. Formerly muchmusic usa,

the successfully re-branded Fuse

grabbed national attention this

past year for its meteoric rise to

become the nation’s fastest-grow-

ing cable network in the coveted

12- to 24-year-old demographic,

with more than 29 million viewing

subscribers.

Ente

rtai

nmen

t &

Spor

ts

At the same time, Clearview

Cinemas provided added

convenience for New Yorkers

in 2003 with a multi-year,

multimillion-dollar deal with

remote ticketing provider

AOL MovieFone.

Complementing its New York prop-

erties this past year was

Cablevision’s local and regional

programming. The company’s five-

channel News 12 Networks received

a host of accolades in 2003, includ-

ing 10 New York Emmys and 13

National Telly Awards, while provid-

ing even more local news and con-

tinuous updates at a faster pace to

meet the needs of its busy viewers.

With more than 7 million viewing

subscribers, the company’s

MetroChannels also marked a

memorable 2003. Awarded six

New York Emmys, MetroTV made

7

Regional Programm

ing

significant strides, debuting

two new, original series, while

welcoming back 52 days of Full

Frontal Fashion to MetroStories.

Metro Traffic & Weather also

celebrated a successful year,

launching an all-new traffic map-

ping system to remain New York’s

most reliable source of local traffic

information, with a cumulative

average of 750,000 homes tuning

in each day.

In 2003, MSG Networks cablecast

hundreds of live events in HD and

garnered five Emmys. And the

company’s Rainbow Sports

Networks extended carriage of the

NHL’s San Jose Sharks and

Columbus Blue Jackets, the NBA’s

Cleveland Cavaliers and MLB’s

Oakland A’s. These networks

include five regional sports

channels reaching 19 million

viewing subscribers in San

Francisco, New England,

Florida, Ohio and Chicago,

and a 50 percent interest

in the national Fox

Sports Net.

MetroChannels’Full Frontal Fashion

Beyonce and Jay-Z performat Radio City Music Hall.

Rainbow Media Holdings LLC broke

new ground in 2003, expanding its

content offerings as it continued to

develop its popular programming.

Spurred by increases in both adver-

tising revenue and subscriber num-

bers, Rainbow’s core networks

recorded revenue growth of 24 per-

cent to $609 million.

Currently in 74 million viewing

homes, AMC’s prime-time house-

hold ratings were up 13 percent this

past year. Meanwhile, the network’s

new weekly series, Sunday Morning

ShootOut, hosted by entertainment

Mix It Up, a Courteney Cox-David

Arquette creation. In addition, the

network published a book with

Simon & Schuster based on WE’s

celebrated series When I Was a Girl,

which features

accomplished

women relating

personal child-

hood stories.

Rainbow also expanded

its leadership in the on-demand

arena in 2003. Mag Rack, the com-

pany’s suite of on-demand video

magazines, extended distribution to

2.1 million homes and launched

exciting new titles such as Personal

Trainer. In addition, the company

introduced World Picks On

Demand, an SVOD service offering

Nat

iona

l Pro

gram

min

g

8

New 2003 Mag Racktitles includePersonal Trainer,which offers homeworkouts in aerobics,kickboxing, Pilates,belly dancing and morefor all fitness levels,24/7.

industry veterans Peter Guber and

Peter Bart, launched in October

2003 to rave reviews. Also notewor-

thy for AMC were American

Cinematheque Tributes honoring

Denzel Washington and Nicole

Kidman.

In 2003, IFC (The Independent Film

Channel) marked another success-

ful year of its signature series

Dinner for Five, announcing a third

season for 2004. In addition, the

network, which now has 30 million

viewing subscribers – up from 26

million in 2002 – launched IFC

Films On Demand and Uncensored

On Demand, two popular, new sub-

scription VOD services. IFC also

unveiled its most ambitious original

programming slate ever for 2004

with eight original productions,

while its documentary release on

1970s American cinema, A Decade

Under the Influence, opened to

critical acclaim.

Reaching nearly 47 million U.S.

households in 2003, WE: Women’s

Entertainment premiered its first

original film, Between Strangers

starring Sophia Loren, and

launched a new home-design show,

Sparks fly on AMC’s SundayMorning ShootOut as hostsPeter Bart and Peter Guberdebate the week’s biggeststories in the world of moviesand entertainment.

Sean "P. Diddy" Combs,Vincent Pastore, JohnLeguizamo (back to camera),Jon Favreau and Juliette Lewison IFC’s Dinner for Five.

dented amount of HD programming

is made possible by Rainbow 1.

With its ahead-of-the-curve tech-

nology, this single satellite provides

unparalleled capacity that will dou-

ble with the arrival of MPEG-4.

Rainbow DBS is in a unique

position to take advantage

of this compression technol-

ogy to maximize the deliv-

ery of its advanced program-

ming across the continen-

tal United States. This

ability to deliver con-

tent to consumers on

a much wider scale

than ever before is due

to the power of

Rainbow 1 and is remi-

niscent of the incredi-

ble opportunities cable

provided in 1973 when

Cablevision began dis-

tributing its content to

outlying neighborhoods

across the nation’s first

suburban cable sys-

tem. As we move for-

ward, we see a promis-

ing future, with VOOM

as the centerpiece of a

new company entering

an exciting new era. 9

®

Ten film channels thatoffer the largest selection of HD moviesavailable anywhere

Scary movies taken to the nextlevel by the power of HDTV

A cinematic celebration of the silverscreen, featuring timeless films

Sports action from around theglobe, including exclusive HD

coverage of Spanish Premier League soccerHeart-pounding, in-your-face,

extreme sports like skydiving, snowboarding,surfing and skateboarding

All music, all the time, with unri-valed resolution and audio clarity

A new destination for the latestin fashion, beauty and style

The amazing world of collectibles,collectors and auctions

An exploration of the world’s great-est museums, art galleries and architecture

Long- and short-form animation, fromaward-winning festivals to cartoon classics

Headlines, weather, sports,feature stories and video essays, all in HD

A stunning, continuous flow ofimages set to music, creating a new artisticmedium uniquely suited to HD

Hindi, Latino, Mandarin and Russian

programming, and sportskool, the

nation’s first VOD cable network

dedicated to expert sports and fit-

ness instruction.

Perhaps the most significant new

endeavor by Rainbow this past year

was the creation of an integrated

suite of 21 brand-new HD channels.

Leveraging Rainbow’s national and

niche programming expertise, this

content package represents the

largest single source of programming

created exclusively for HDTV.

This suite of 21 channels forms the

core of Cablevision’s new HD-cen-

tric programming satellite service,

VOOM. Introduced in October 2003,

this service, managed through

Cablevision’s Rainbow DBS satellite

division, delivers more HD program-

ming than any other satellite or cable

service in the nation. In addition to

more than 30 HD channels, VOOM

features the latest in HD technology.

In 2004, this will include a ground-

breaking digital video recorder capa-

ble of recording and playing back HD

programming.

VOOM’s ability to deliver an unprece-

On July 17, Rainbow DBS launchedRainbow 1, a state-of-the-art satel-lite that led to the introduction ofVOOM, a television service deliver-ing more HD programming than anyother satellite or cable service inthe nation.

Mia Hamm, sportskool

Satellite Television

Than

k yo

u

10

CONSUMERS DEPEND ON CABLEVISION’S DIGITAL SERVICESand technologies to improve their daily lives.

Today, Cablevision stands alone in delivering these integral products

across the world’s most advanced network to millions of loyal cus-

tomers in the nation’s most attractive market.

Going forward, as we focus on our core assets and strengthened

financial position, we will continue to provide cutting-edge services

and extend the boundaries of communications. We will also unveil a

new company that honors Cablevision’s 30-year heritage as a con-

tent leader, setting the stage for new opportunities.

Thank you to our co-workers, customers, financial partners and

shareholders. It is because of you that consumers will look to

Cablevision for decades to come as we deliver products and servic-

es that continue to entertain, excite and enable.

Respectfully submitted,

April 2004

Charles F. Dolan James L. Dolan

Chairman President and Chief Executive Officer

James L. Dolan and Charles F. Dolan pictured at the company'sfully digital programming origination center.

Board of Directors

Charles F. DolanChairman

James L. DolanPresident and Chief Executive Officer

William J. BellVice Chairman

Patrick F. DolanPresident, News 12 Networks

Thomas C. DolanExecutive Vice President

Charles D. FerrisPartner, Mintz, Levin, Cohn, Ferris,Glovsky and Popeo, P.C.

Richard H. HochmanChairman, Regent CapitalManagement Corp.

Sheila A. MahonyFormer Executive Vice President

Victor OristanoChairman, Alda Limited Partners

Steve N. RattnerManaging Principal, QuadrangleGroup LLC

Thomas V. ReifenheiserRetired Managing Director,JPMorgan Chase

John R. RyanRetired Vice Admiral, U.S. NavyPresident, SUNY Maritime College

John L. TattaRetired President, CablevisionSystems Corp.

Vincent TeseDirector, The Bear StearnsCompanies

Corporate Management Group

Charles F. DolanChairman

James L. DolanPresident and Chief Executive OfficerChairman, Madison Square Garden

William J. BellVice Chairman

Hank J. RatnerVice ChairmanVice Chairman, Madison SquareGarden

Michael S. AlpertSenior Executive Vice President andChief Operating Officer, Rainbow DBS

Patrick F. DolanPresident, News 12 Networks

Thomas C. DolanExecutive Vice President and Chief Information Officer

Wilt HildenbrandExecutive Vice President, Engineering and Technology

Joseph J. LhotaExecutive Vice President, CorporateAdministration, and President,Lightpath

Steve MillsPresident and Chief Operating Officer,Madison Square Garden Sports

Andrew B. RosengardExecutive Vice President, Finance

Thomas M. RutledgePresident, Cable andCommunications

Joshua W. SapanPresident and Chief Executive Officer,Rainbow Media Holdings LLC

Jonathan D. SchwartzExecutive Vice Presidentand General Counsel

Corporate Executives

11

Corporate HeadquartersCablevision Systems Corporation1111 Stewart AvenueBethpage, NY 11714-3581

Web AddressCablevision can be found on theInternet at www.cablevision.com

Financial ReportsFinancial reports, including Form10K, Form 10Q and annual reports,can be accessed and ordered onlineat www.cablevision.com

You may also obtain financialdocuments by contacting:Cablevision Systems CorporationInvestor Relations1111 Stewart AvenueBethpage, NY 11714-3581516-803-2270investor@cablevision.com

Earnings InformationPress releases can be accessedonline at www.cablevision.com

Stock InformationCablevision Systems Corporationis listed on the New York StockExchange under the symbol CVC.

Stockholder Information

Annual MeetingThe annual meeting of stockholderswill be held on May 25, 2004, at10:00 a.m. at Cablevision’scorporate headquarters.

Independent AuditorsKPMG LLPMelville, NY

Transfer Agent and RegistrarMellon Investor Services85 Challenger RoadOverpeck CenterRidgefield Park, NJ 076601-800-851-9677

Created by C2 Creative and CablevisionCorporate Communications, InvestorRelations and Controller’s Group

Boy using laptop [Cover] - Simon Watson/Getty Images

Girl doing handstand - Jim Arbogast/Getty Images

Woman using laptop - Mark Douet/Getty Images

Children watching TV - Digital Vision/Getty Images

Girl on phone - Jim Bastardo/Getty Images

Madison Square Garden - MSG Photos

Chris Rock - George Kalinsky for Madison Square Garden

Simon & Garfunkel - George Kalinsky for Madison

Square Garden

Jaromir Jagr - Bruce Bennett Studios

Stephon Marbury - MSG Photos

Beyonce & Jay-Z - Frank Micelotta/Getty Images

Karolina Kurkova - ©Jennifer Graylock/jpistudios.com

Man viewing screens - G D T/Getty Images

Man with kids using computer - Keith Brodsky/

Getty Images

Woman exercising - Barry Yee/Getty Images

* This letter to shareholders contains statements

that constitute forward-looking statements within

the meaning of the Private Securities Litigation

Reform Act of 1995. These forward-looking state-

ments include 2004 free cash flow, among others.

Investors are cautioned that any such forward-look-

ing statements are not guarantees of future perform-

ance or results and involve risks and uncertainties,

and that actual results or developments may differ

materially from those in the forward-looking state-

ments as a result of various factors, including finan-

cial community and rating agency perceptions of the

company and its business, operations, financial con-

dition and the industry in which it operates, and the

factors described in the company’s filings with the

Securities and Exchange Commission, including the

sections entitled “Risk Factors” and “Management’s

Discussion and Analysis of Financial Condition and

Results of Operations” contained therein. The com-

pany disclaims any obligation to update the forward-

looking statements contained herein.