Changing Channels: Television Broadcasting In The US Industry Market Research Report Now Available From IBISWorld
Although revenue growth for the Television Broadcasting industry has been relatively flat over the past five years, activity has been slightly volatile. The industry continues to experience strong competition from the digital cable and satellite TV industries. The cable TV industry, in particular, represents a significant threat to future industry growth, though broadcasters are increasingly negotiating with cable networks to get a portion of profit from viewers. New media is also posing competition, with greater numbers of viewers opting for the internet. Successful firms will make adjustments to changing consumer preferences and deliver a more interactive and customized service. For these reasons, industry research firm IBISWorld has added a report on the Television Broadcasting industry to its growing industry report collection.
Los Angeles, CA (PRWEB) - Alternative forms of media are vying for the audiences and advertising revenue that the Television Broadcasting industry traditionally won over. According to industry survey firm Nielsen, about 97.0% of households will own a television in 2012, which is down from 99.0% of households in 2011. In addition, industry participants are demanding that companies pay broadcasters a fee for retransmitting their programming in response to a consumer shift to cable services (which 90.0% of households with televisions subscribe to, according to Nielsen). "This move will help to diversify and increase revenue," says IBISWorld industry analyst Agata Kaczanowska. "Moreover, advertising revenue is already on the rebound because record-high corporate profit is enabling many companies to invest in marketing efforts.”
Over the five years to 2012, IBISWorld estimatesTelevision Broadcasting industry revenue declined at an annualized rate of 0.9% to $37.3 billion. “During this time, the mandated transition to digital transmission was costly for broadcasters,” explains Kaczanowska. “This change led to layoffs and diminished spending on programming.” Consequently, industry employment declined since 2007 at an estimated average rate of 1.4% per year to 119,664 workers in 2012. More than half of enterprises have fewer than 20 employees, and the industry has a low level of market share concentration. This share has stayed constant over the five years to 2012, as CBS Corporation and NBCUniversal sold broadcasting stations in order to focus more on cable TV networks, while The Walt Disney Company acquired additional stations. The intensifying competition from cable networks has adversely affected broadcasting revenue during this time. As more Americans are subscribing to and watching cable TV, advertisers have shifted to pay higher rates to spots on that medium.
The broadcast TV business model will continue to experience significant changes, and TV will become more interactive and customized for individual consumers. Relaxed ownership regulations will likely lead to further consolidation and additional layoffs because the broadcasting spectrum is limited and no new stations can be built. Combined with improving consumer sentiment, these changes are projected to stimulate revenue growth over the next five years. For more information, visit IBISWorld’s Television Broadcasting in the US industry report page.
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IBISWorld industry Report Key Topics
Television broadcasters operate studios and facilities that program and deliver audio-visual content to the public via over-the-air transmission. This industry excludes cable and satellite TV and operators that solely provide content online.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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