Cable Networks in the US Industry Market Research Report Now Available from IBISWorld

Share Article

Cable operators are at the core of the cable TV revolution, supplying popular family shows, news, movies, sports, documentaries and other products to a growing swarm of eager subscribers. Consumers are increasingly willing to pay for entertainment that suits their interests. Revenue is expected to increase over the five years to 2012. This growth was the result of increasingly specialized services that cable networks provide, enabling them to charge premium prices to key consumers. To keep up with the growing subscriber base, the industry is expanding its offerings and focusing on customer service and outreach. For these reasons, industry research firm IBISWorld has added a report on the Cable Networks industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

More subscribers will cause the industry to expand its offerings, stimulating demand

Cable operators are at the core of the cable TV revolution, supplying popular family shows, news, movies, sports, documentaries and other products to a growing swarm of eager subscribers. Consumers are increasingly willing to pay for entertainment that suits their interests. For example, the introduction of high-definition (HD) TV vastly improved the quality of shows and attracted subscribers, even as disposable income dropped. New networks and channel offerings have also strengthened the Cable Network industry's appeal to consumers. “Revenue is expected to increase at an annualized rate of 5.2% over the five years to 2012, despite a drop in advertising spending that stemmed from increased competition from other media (including the internet) and lower corporate profit,” IBISWorld industry analyst Agata Kaczanowska said. This growth was the result of increasingly specialized services that cable networks provide, enabling them to charge premium prices to key consumers. In 2012, the Cable Networks industry is estimated to garner revenue of $17.9 billion, representing 5.5% growth that year.

To keep up with the growing subscriber base, the industry is expanding its offerings and focusing on customer service and outreach. This trend involves social networking, website development and application development, along with traditional call centers. As a result, the industry is expected to employ about 36,280 people in 2012, representing five-year annualized contraction of 0.2%. New independent networks are also increasing in popularity, especially as production and distribution costs wane, Kaczanowska said. This is the chief reason for 0.8% annualized enterprise growth to 406 firms in 2012. The Cable Networks industry is projected to fare well during the next five years. Further consolidation within the industry is projected to continue to strengthen the position of industry operators, leading to a continued growth in profit.

The industry's top four players - The Walt Disney Company, Viacom Inc., Time Warner Inc., Comcast Corporation and News Corporation - make up about half of its revenue. However, many smaller networks are also linked by programming or aggregation agreements with the larger networks. There are, however, Federal Communications Commission (FCC) limits on the extent of vertical integration between the cable networks and distributors. Satellite delivery of programs continues to aid this process, but currently, four of the top six cable multiple system operators (MSO) also hold interests in this growing form of program delivery. Just as industry concentration increased over the past five years, concentration should continue to rise over the next several years. For more information, visit IBISWorld’s Cable Networks report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry operates studios and facilities and distributes TV programs on a subscription or fee basis through cable systems. This industry includes specialty TV cable networks and pay-per-view programming. However programming production is excluded from the industry, as are other TV providers such as satellite broadcasters.

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

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website