Media companies’ most reliable cash cow — their clusters of cable TV channels — could be headed for some rough terrain.
On Thursday, NBCUniversal Chief Executive Steve Burke warned Wall Street not to expect cable TV channels to produce the same fat profits as they have during the last five years or so.
Since 2008, cable channels have generated among the highest margins in the business. The consistent cable programming profits boosted media companies’ earnings even when their big-ticket movies bombed at the box office, and their broadcast TV shows nose-dived in the ratings.
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