It could be tougher to sell consumers on the need for higher cable prices once statistics compiled by Ernst and Young get widespread play. According to a study by the research firm, operating a cable TV company continued to be the most profitable business from 2006 to 2010, just ahead of the somewhat amorphous and quickly climbing interactive media space.
According to the study, cable's 38 percent EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin led all industries in profitability, although interactive media was up to 35 percent, ahead of cable networks (31 percent), satellite TV (27 percent) and broadcast TV (18 percent).
On a telling bit of financial wizardry, interactive came out on top with 15 percent growth in EBITDA dollars. This was slightly ahead of cable networks at 14 percent and well ahead of cable operators and satellite, both at 10 percent.
For more:
- Mediapost has this story
Related articles:
Sizing up the cable industry in the fourth quarter of 2010
Cable comes up a winner even while losing, thanks to broadband