Satellite TV Providers in the US Industry Market Research Report Now Available from IBISWorld

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Satellite TV providers are in the midst of a revolution, supplying popular family shows, news, movies, sport, documentaries and other products to a growing swarm of eager subscribers who are willing to pay for in-home entertainment. The introduction of high-definition TV vastly improved the quality of shows and attracted subscribers even as disposable income dropped during the Great Recession. New networks, channel offerings and bonus features are strengthening the industry's appeal to consumers. Over the next five years, the industry will face escalating competition from other media, including online video streaming on mobile devices. The ability of major players to continue developing ways to retain and attract subscribers will determine the extent of revenue growth over this time. For these reasons, industry research firm IBISWorld has added a report on the Satellite TV Providers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Profit margins will tighten as operators boost marketing to retain subscribers

The Satellite TV Providers industry has seen solid growth over the past five years, supplying a variety of programming to a growing subscriber base willing to pay for in-home entertainment. The introduction of high-definition (HD) TV vastly improved the quality of programming and attracted subscribers, even as disposable income dropped during the Great Recession. “In addition to a dramatically improved reputation for quality, new networks, channel offerings and bonus features are strengthening the industry's appeal to consumers,” says IBISWorld industry analyst Kevin Boyland. Higher spending on industry services is anticipated to result in an annualized revenue growth rate of 5.6% over the five years to 2012. Revenue is forecast to increase 3.8% to $41.4 billion in 2012 as more consumers subscribe to satellite TV. However, increasing programming costs, which firms may be unable to pass on to consumers amid intense internal and external competition, may pressure industry profitability.

Over the past five years, major players DirecTV and Dish Network have successfully expanded their scope and revenue by offering an increasing array of services and continually improving their quality. “Due to high start-up costs, regulation and intense competition, few small producers have managed to develop a niche market,” adds Boyland. “These smaller players are able to survive in the Satellite TV Providers industry, but do not compete directly with its major players.” Satellite TV is attractive because of its ability to reach almost any place on the planet. Progressive technologies like new data compression formats have advanced the quality and speed of direct broadcast satellite (DBS) transmissions, making this medium more attractive to consumers. Likewise, with satellites already in orbit, existing companies have low costs per additional subscriber. By maintaining other costs at a relatively level rate, the industry is expected to earn a healthy profit in 2012.

Over the next five years, the industry will face escalating competition from other media. The ability of major players to continue developing ways to retain and attract subscribers will determine the extent of revenue growth over this time. More aggressive marketing tactics are anticipated to cut slightly into industry profit. As a result, IBISWorld forecasts slower annualized revenue growth over the next five years, driven largely by new subscribers. Household creation is projected to flourish toward the end of the period, partially driving increasing subscriptions. For more information, visit IBISWorld’s Satellite TV Providers report in the US industry page.

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IBISWorld industry Report Key Topics

This industry is made up of companies that distribute TV programs on a subscription or fee basis through direct broadcast satellites (DBS). It excludes other satellite telecommunications providers, TV production studios, traditional TV broadcasters and cable networks.

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.

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Gavin Smith
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