Despite some definite challenges (including competition from online streaming services and fractured audiences), television companies and TV divisions within large media companies are still seeing profits--especially in comparison to their theatrical counterparts.
In the U.S., TV distributors DirecTV and Time Warner Cable reported second quarter revenue increases despite drops in subscribers. The two rival companies--Time Warner is a cable company and DirecTV a satellite provider--managed to pull this off by focusing on more profitable subscribers: those who stick around longer and pay more for monthly services.
Overall for the quarter, DirecTV posted a profit of $660 million (which is down from the same time last year, though average revenue per household is up) and Time Warner Cable posted an increased profit of $481 million for the quarter.
The loss in subscribers for both companies is largely attributed to online streaming services like Netflix, which have caused viewers to become "cord-cutters."
Media companies Comcast (owner of NBC broadcast network) and CBS Corporation (which owns the CBS broadcast network) had good news to celebrate for the second quarter of 2013, too. Comcast's earning rose to $1.7 billion (from $1.35 billion)...