Cable, satellite TV profits rise

PHILADELPHIA (AP) — Consumers are feeling more confident about spending on small luxuries such as premium cable services and pay-per-view, propelling the earnings of cable and satellite TV providers upward in the second quarter. Advertisers, particularly automakers, also spent more in the quarter.

Time Warner Cable Inc., DirecTV Inc. and Cablevision Systems Corp. all show healthy upticks in demand for their pricier digital cable tiers, high-definition TV packages and rentals of digital video recorders and movies. They also raised rates, boosting profits.

Even as other industries struggled in the sluggish economy, the subscription TV business — cable and satellite TV providers and phone companies that offer video — has not seen much of a downturn.

People have been reluctant to give up their entertainment altogether, and staying home to watch TV is still cheaper than going to the movies.

Tags: us business, business, cable, satellite, tv, profits