New York, NY (PRWEB) July 08, 2014
Over the past five years, the Television Production industry slightly went down the tube. While high rates of audience viewership has propped up industry revenue, this trend was offset by more consumers tuning in via digital platforms, such as tablets. For example, according to the International Advertising Bureau's Digital Content NewFronts in 2013, an estimated 75.0% of US senior executives plan to shift their advertising budgets from television to digital video advertisements. “Digital platforms, such as Hulu, are allowing TV producers to establish new revenue streams by selling their licensing of cable channels' syndication rights to online distributors,” according to IBISWorld Industry Analyst Sarah Turk. However, while it is easier to introduce TV shows to audiences through these online applications, the proliferation in the number of TV channels has increased competition.
As a result, key industry players have formed joint ventures and partnerships to lower production costs and diversify their portfolio, which has attracted a wider audience, thereby bolstering industry revenue. Furthermore, television producers are increasingly having vertically integrated operations, which include owning studios, TV networks and digital platforms to increase their distribution revenue. “Nevertheless, as the number of cable TV subscriptions has declined, which has shifted advertiser funding from traditional cable TV to online platforms, the industry has grappled with generating advertising revenue,” says Turk. In response, TV producers are specializing production, with companies creating niche markets to stimulate audience loyalty. For example, crime show producers have hired crime specialists to work on several shows at once, which has lowered production costs. In the five years to 2014, industry revenue is anticipated to grow at an annualized rate of 0.1% to $37.0 billion, including growth of 2.9% in 2014.
With the growth of new TV platforms and their relative convenience, the industry will experience an upward trend. Revenue is forecast to grow at an annualized rate of 3.7% to $44.3 billion in the five years to 2019 due to higher corporate profit boosting advertising spending. Additionally, an increase in quality content will generate more viewer interest, enabling production companies to mark up licensing fees.
For more information, visit IBISWorld’s Television Production in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Television Production industry produce television programming that is then licensed or sold to broadcast or cable networks, which are not included in this industry. Movie production is also excluded from this industry, with the exception of made-for-TV movie production.
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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