Television broadcasters will restructure their business models to better integrate programming with digital platforms.
New York, NY (PRWEB) July 17, 2014
The Television Broadcasting industry has struggled to attract viewers and generate advertising revenue in the five years to 2014. Historically, television commanded a central role in the country's media sector and represented a main avenue for advertisers. However, the explosion of digital media and the increasing use of mobile devices have eroded the television medium in recent years. According to IBISWorld Industry Analyst Darryle Ullama, “Consumers are finding new outlets for entertainment online, prompting advertisers to increase their digital spending at the expense of industry operators.” Additionally, competition from cable networks and specialty television has increased, further contributing to the industry's contraction. In the five years to 2014, industry revenue is expected to decline at an annualized 1.9% to $3.5 billion.
Consumers are quickly adopting mobile devices such as tablets and smartphones, thereby increasing their ability to subscribe to online streaming platforms and services that compete with broadcast programming. In response, advertisers have lowered their spending on broadcast television and have increased their efforts on digital and online media. “In 2014, protracted decline in television advertising is projected to lead to a 3.5% decrease in revenue,” says Ullama. Consequently, average profit has remained slim.
Television broadcasters will respond to a shifting media environment in the next five years by restructuring their business models to better integrate programming with digital platforms. Regulators will encourage flexibility to mitigate the continued transition to competing media and online services. Nevertheless, advertising revenue is expected to continue falling, as businesses seek new ways to reach consumer groups, thereby limiting the industry's growth. In the five years to 2019, industry revenue is expected to increase.
For more information, visit IBISWorld’s Television Broadcasting in Canada 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
The Television Broadcasting industry operates studios and facilities that program and deliver audiovisual content to the public via over-the-air transmission. This industry excludes cable and satellite TV and operators that solely provide content online.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 and Canadian 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.