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Why Cable Will Survive an Economic Meltdown

  • Wired, Wednesday, September 17, 2008 9:30 AM

People like TV. They don't want to give it up even if the economy is going to hell in a hand basket. Actually, Americans are less willing to sacrifice TV programming in a recession than in good times, according to some Wall Street analysts.

"Incumbent cable TV providers are better protected [from the economy] than other businesses because their only competitive pressure is from Verizon and AT&T, which aren't big enough yet to pose a serious threat," says analyst Chris King.

Among all the cable players, Comcast, like a cockroach, is perceived as a safe bet in an economic storm, says analyst Craig Moffett. "Cable stocks are enjoying a banner year in this extraordinarily tough market. And for many investors, Comcast is the cable industry." Wall Street likes Comcast better than rival Time Warner Cable, partly because investors think that TW's financial goals are a little too aggressive, which means it could disappoint.

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