Cable Companies have a 97% Profit Margin on Their Internet Services
In parts of the country, slower-speed copper, fast-download cable, and a few fiber networks are already built out. The cable distribution giants like Time Warner Cable and Comcast are already making a 97 percent margin on their ‘almost comically profitable’ Internet services, according to Craig Moffet, an analyst at the Wall Street firm Bernstein Research. As Levin points out, ‘If you are making that kind of margin, it’s hard to improve it.’ And most Americans have no choice but to deal with their local cable company.
Well, this is true if this Wall Street analyst is correct.