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Television Broadcasting in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Sep 09, 2013, 04:00 ET

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The industry's business model is changing as TV becomes more interactive and customized.

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Los Angeles, CA (PRWEB) September 09, 2013 -- Alternative forms of media are currently vying for audiences and advertising revenue that the Television Broadcasting industry traditionally received. Although advertising revenue has started to rebound slightly, since increases in corporate profit have enabled many companies to invest in marketing efforts, new online channels have also started attracting an increasing share of corporate spending. As a result of intensifying competition stemming from consumers and advertisers' continual switch to competing media, IBISWorld estimates revenue for the Television Broadcasting industry will decline in 2013.

During the past five years, the mandated transition to digital transmission was costly for broadcasters. This change led to cost-cutting initiatives like layoffs and diminished spending on programming. Consequently, employment is estimated to have declined since 2008. The shift in consumer preferences from broadcasting to cable services has also affected the industry, forcing industry participants to start demanding that cable companies pay broadcasters a fee for retransmitting programming. According to IBISWorld Industry Analyst Olawale Harrison, “This move would help diversify revenue and boost industry profitability.” As a result, IBISWorld expects profit to expand in the five years through 2013.

The broadcast TV business model will continue to experience significant changes, and TV will become more interactive and customized for individual consumers during the five years to 2018. Relaxed ownership regulations will likely lead to further consolidation and additional layoffs because the broadcasting spectrum is limited and government regulations currently prohibit new stations from being developed. “These factors combined with improving consumer sentiment are projected to stimulate average annual revenue growth,” says Harrison.

IBISWorld estimates that the top four companies, NBCUniversal Inc., The Walt Disney Company, The Fox Broadcasting Company, and CBS Corporation, earn a significant portion of Television Broadcasting industry's revenue (see IBISWorld report 51312 for major player market shares). This percentage has stayed relatively constant during the five years to 2013, because some major companies acquired additional stations, while others sold them. The intensifying competition from cable networks has adversely affected broadcasting revenue during this time. As more Americans have started subscribing to and watching cable television, advertisers have started paying higher rates to spots on that medium.

For more information, visit IBISWorld’s Television Broadcasting in the US industry report 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

Television broadcasters operate studios and facilities that program and deliver audiovisual content to the public via over-the-air transmission. The Television Broadcasting industry excludes cable and satellite TV and operators that provide only online content.

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.

Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]

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