The industry's business model is changing as TV becomes more interactive and customized
Los Angeles, CA (PRWEB) March 11, 2012
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, the number of households with televisions will drop by 2.0% in 2012, to 97.0%. In addition, in response to a consumer shift to cable services, industry participants are demanding that cable companies pay broadcasters a fee for retransmitting their programming. . The intensifying competition from cable networks has adversely affected broadcasting revenue during this time. As more Americans are subscribing to and watching cable television, advertisers have shifted to pay higher rates to spots on that medium. “This move will help industry operators to diversify and increase revenue,” IBISWorld industry analyst Agata Kaczanowska said. “Moreover, advertising revenue is already on the rebound because record-high corporate profit is enabling many companies to invest in marketing efforts. As a result, industry revenue is anticipated to grow in 2012.”
Over the five years to 2012, IBISWorld estimates revenue in the Television Broadcasting industry declined at an annualized rate of 1.3% to $37.4 billion. During this time, the mandated transition to digital transmission was costly for broadcasters. This change led to layoffs and diminished spending on programming. Consequently, industry employment is down, and, despite the industry's cost-saving measures, profit will contract as well, Kaczanowska said. The broadcast TV business model will continue to experience significant changes, though TV will become more interactive and customized for individual consumers. Relaxed ownership regulations will likely lead to 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.
Over the five years to 2012, CBS Corporation and NBCUniversal sold broadcasting stations in order to focus more on cable television networks as The Walt Disney Company acquired additional stations. As a result of these changes, market share concentration has changed little For more information, visit IBISWorld’s Television Broadcasting report in the US industry 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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