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CABLE TV: MOST PROFITABLE SEGMENT OF MEDIA BUSINESS

September 18, 2014 by · Leave a Comment 

Cable-TV operators may wring their hands over the high cost of content and blame the broadcast and cable networks for their soaring subscription fees, but a new study indicates that a huge chunk of those fees are going to the cable companies’ shareholders. Indeed, according to a new study by the accounting firm Ernst & Young, cable operators are averaging 41-percent profit margins, well above the average for every other segment of the entertainment and media business, which together averaged 28 a profit margin of 28 percent. Cable networks also reaped handsome profits, according to the study, coming in at 37 percent. The S&P average for all U.S. industries is 11 percent.