Behind the TV channel blackouts: stalling profits

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LOS ANGELES (AP) — Channel blackouts such as the one that resulted from the recent spat between Viacom and DirecTV have become far more common over the past three years. Consumers can thank the changing dynamics of the entertainment industry.

Media companies such as Viacom and Disney have become steadily more profitable since the gloom of the recession lifted in early 2010. But the cable and satellite providers that pay to carry their channels have seen profitability virtually stagnate as they fight each other for subscribers.

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