Not an expert on the media/telecom sector but here goes:

People have been scaling back their discretionary services but shares of Rogers have outperformed the broader equity markets. Generally, I believe that folks scale back but don't cancel subscriptions. That is, they'll cancel a premium channel or take a bit longer to give their kid a cellphone but they won't cancel cable altogether.

Recessions also negatively affect household formations. As job growth moves negative, household formation, a major formation of economic growth, moves negative in tandem. Young people take longer to move out of their parents house while many others, who had been living alone, find roommates. So while a recession clearly has a detrimental impact on a company such as Rogers, I believe that the decline in earnings is not as pronounced as it might be in other sectors that are more volatile. That being said, I'd guess a media company's growth such as Rogers to be highly curtailed, if it exists at all.

The worst thing that could happen to the Canadian economy is a continued slump in commodity prices. To be sure, oil remaining at levels that make it economically unfeasible to be extracted from the oil sands would be particularly tough.

I'll add this......automotive and retail industries are the top two spenders when it comes to advertising in Canada.  They have definitely reduce their advertising budgets.

 

One thing...TV, Newspapers and Radio stations are being slaughtered by the loss of advertising dollars. Sportsnet will be taking a real kick - if it's not already. CBC - and others are cutting staff. The Jay's are "in" the "Rogers Media" part of "Rogers." The part of "Rogers" getting slaughtered by income falling.

With Ted gone - I'd be nervous - in fact I am. HOWEVER, Beeston says we can go to $120 (from $85 now) IF the team looks like an addition or two would give us a shot.

As to Moffat and his Cuttlefish - I really miss him - and Moffat too.

Sportsnet paid $18.75 M. for broadcast rights to 125 games ($150,000.00 per game).  TSN paid $3.0 M. for broadcast rights to 20 games ($150,000.00 per games).  CBC balked at paying approximately $2.55 M for broadcast rights to the balance of games (same per game).  CBC said it cost them approximately $50,000.00 per game to produce.   Estimate $200,000.00 per game in costs.  There are 4 - 15 second commercials in one minute.  Between top & bottom of innings: 9 x ? minutes = ? (15 second commercials).  Between innings: 8 x ? minutes = ? (15 second commercials).  Pitching changes: 0-4+ x ? minutes = ? ( 15 sec. com.).  Prior to 1st pitch = ? minutes; After last pitch = ? minutes.  Fill in the ? with the right numbers; work out the math and you will find a cost per 15 second commercial of approximately $1100.00.  Selling these for $1150.00 - $1250.00 per 15 second commercial.     4 x $1250.00 x (125 = 20 = 17) = $810,000.00 - This is not a lot of money, even in this economy, for a company to invest.   (Revenue: $21.75 M.).  (Corporation profit = ?).

Where I work I can tell people are partying less on Saturdays, less x 2 on Sundays and less x 4 on Fridays.  They may not be going out, they're still visiting friends - just spending less.  Telephone usage in all it's forms is not decreasing.  Television usage in all it's forms will not decrease.  Growth will slow, but it will not stop (only in Ontario do people panic).

Average Ticket price of approximately $25.00.  Average Refreshment price of approximately $25.00.  Average souveneer price: $10.00.  Add 2 million fans.  (Revenue: $120.0 M.)

Need I go on?  (Revenue: $141.75 M.).  This team makes money which gets lost in the Corp's books.  They can make even more. 

On a related note, if you, like myself make a tradition of going to the evening game after the home opener -- April 7th will be a dry day at the RC because of liquor license "issues".

Let's just hope it is an interesting game or an empty house... on a related note, I will refreshing my girlfriend/fiancee's ability to score a game (not that she requires the refresher just that she enjoys it when we go over things together). If you don't like couple who talk/kiss don't sit near 113B, Row 12.