• The Washington Post, Tuesday, August 4, 2009 10:48 PM

Time Warner's cable networks are uniquely positioned to take share from broadcast television, says Pali Capital media analyst Richard Greenfield. "We feel increasingly comfortable with Time Warner as more of a pure content play," he says. Greenfield has a "buy" rating on shares of Time Warner and has maintained a $28 price target.

Only Time Warner's struggling 115-magazine Time Inc. division, which includes Time, Sports Illustrated and Fortune, is vulnerable because of its exposure to ad-spending volatility. Like most print publications, the Time Inc. magazines are in trouble. Operating income was off by more than half for the second quarter compared with last year. Income was down by a whopping 77% in the first half.

While revenue from Time Inc. accounts for only 13% of the parent company's earnings, Time Warner plans to remain in the magazine business for the foreseeable future. However, the company might sell individual, less-successful titles while holding onto profitable magazines, such as People, say insiders.

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