Those of you who still think cable operators control regional pay TV monopolies got a reality check last night after No. 1 U.S. cable operator Comcast cut its near-term financial outlook for the second time in five weeks. Comcast shares plunged nearly 10 percent.

Next year doesn’t look any better. Comcast executives blamed the economic downturn for its woes this morning at the UBS media and communications conference.

Company watchers played up competitive pressure from telcos and satellite TV operators. Pali Research’s Richard Greenfield also wondered whether not carrying the Big Ten Network and NFL Network hurt Comcast, despite the company’s insistence that it has had no impact.

Whatever the reason, shareholders — including those of Time Warner Cable and Cablevision — won’t be happy today, tomorrow, and probably well into next year.

Here’s what Wall Street’s saying:

Anthony Noto, Goldman Sachs: Our “extreme downside scenario” is playing out worse than we thought and are thus lowering our estimates again.

Richard Greenfield, Pali Research: Cable is fighting an all-out war on multiple fronts, putting operators in a position they have never faced before. Comcast needs to go on the offensive, and soon. The continuous stream of estimate reductions is simply damaging management’s credibility.

David Joyce, Miller Tabak + Co: Sentiment will remain in a show-me state.

(Reuters)

Keep an eye on:

• Gmail users can use AIM now. The question is if they can make money off it. (NYT Bits)
• Nielsen gears up to be the Web’s top video cop. (WSJ)
• Google launches iPhone application integrating search, Gmail, calendar and reader. (Google)
• RBC’s Jordan Rohan sees Google and Yahoo hurt by looming recession, just less so than traditional media companies (Silicon Alley Insider)

(Photo: Reuters file)