Premium TV takes a hit

Basic cable might be buoyant, but premium payboxes are feeling the pinch. Latest earnings reports from entertainment and distribution biggies suggest that the likes of Starz, Encore, HBO and Showtime are seeing slower subscriber growth or even declines because of user cancellations amid the recession. Liberty Media said Friday that its Starz service saw an average sub gain of 5% in the second quarter compared with the year-ago period, and Encore essentially was flat year-over-year. But sequentially, meaning compared with the first quarter, Starz lost 3% of its subscribers in the period and Encore was down 1%.