London, United Kingdom (PRWEB) July 16, 2012
As with most media industries, the past decade has been a period of great turmoil for the Television Programming & Broadcasting industry as continued advances in digital technology drove widespread changes. Increasing internet speed and bandwidth has upended the traditional media landscape. While this affected the music and newspaper industries first, there has also been a pronounced effect on TV broadcasters. During the past 10 years a number of developments have affected the industry: traditional analog broadcast channels have shifted to a digital setting, TV on demand has become available online and pay TV has grown. While the industry remains dominated by a few major names including the BBC, ITC, Channel 4 and Five, fragmentation of the media has led to a proliferation of new companies rushing to fill the void created by the advent of new viewing technologies. Over this period, the traditional networks have found that they are now unable to satisfy public demand for video content. According to IBISWorld industry analyst Arna Richardson, “the fragmentation of audiences between free TV, pay TV and numerous digital channels has made TV advertising less appealing to companies, driving values down”. The competition among pay-TV operators has also driven down subscription values. The result has been a difficult time for the industry, with revenue expected to grow an annualised 0.4% in the five years through 2012-13, reaching £12.9 billion. This includes a forecast 3.0% increase in 2012-13.
The biggest change (since the advent of colour television, that is) occurring within the industry is the £630 million digital TV switchover. This is due to be completed by October 2012 as analog terrestrial transmissions are progressively switched off, a process first started in 2008. Richardson adds, “in coming years, the industry is likely to post modest growth, as revenue from internet-based advertising for TV on demand and programmes viewed online is included more completely in the industry's income”. In addition, as some stability enters the industry's varying forms of service delivery and the economy begins to recover, advertisers will become more confident in placing commercials.
A by-product of decades of having only four stations, the Television Programming & Broadcasting industry still displays a moderate degree of market share concentration. Even today the five most watched channels are BBC One, BBC Two, ITV, Channel 4 and Channel 5. However, the rapidly shifting technological environment is changing the industry's complexion in ways not even considered when the BBC was watched by 50% of the public and accounted for about that much spending on TV. The introduction of satellite and pay TV over the past two decades represented the beginning of the fragmentation of the industry, as Sky began to dominate the segment, by paying for the rights to major sporting events and broadcasting them into pubs and bars around the United Kingdom. Major companies include BSkyB, BBC and ITV.
For more information on the Television Programming & Broadcasting industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry encompasses all TV broadcasting services in the United Kingdom, from free-to-air (analog and digital) to satellite and pay-TV services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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