I know you use Verizon as evidence of poor profitability, have you looked at other providers? I calculate 20-25% gross margin for TWC if I attribute all operating costs, some of which should be shared with TV and voice, to Internet.
Cost of programming content is $5.2 billion, but video programming generates $10 billion in revenues. Operating income is $4.6 billion. Obviously there's marketing, sales, and operational costs that also go away if you don't have video service. But there's also $1.1 billion in advertising revenue that probably goes away too. And really, the numbers are totally incomplete without looking at capex and depreciation too.
Analysis is similar for Charter, except they're running a net loss straight-up.
