TV Cable, Pay & Broadcast Networks Industry Analysis

Strategic Insights -

The TV cable, pay, and broadcast network industry in the US is a significant player in the entertainment and media sector. The industry includes approximately 2,600 networks and stations with combined annual revenue of $57 billion. The major broadcast TV networks are ABC, CBS, FOX, and NBC, while major TV cable networks include Discovery Channel, ESPN, CNN, and TNT. Large non-network station groups such as Sinclair Broadcast Group, Hearst Television, and Raycom Media also operate within this industry.

Key Takeaways:

  • The industry is highly concentrated, with the top 50 companies accounting for 80 percent of revenue.
  • The industry includes almost 2,000 broadcast TV firms and over 600 cable/subscription firms, with broadcast TV accounting for slightly over half of industry revenue and cable TV, for slightly less than half.
  • Business advertising, program popularity, and consumer demographics drive demand, while the profitability of individual companies depends on advertising volume, programming mix, and efficient operations.
  • Large companies have advantages of market dominance, often owning the only TV stations in a geography, but small companies can compete effectively with special programming that attracts a targeted audience.
  • The average annual industry revenue per employee is $350,000: broadcast TV averages $257,000 per worker and cable TV about $651,000.
  • The major industry product lines are broadcasts (air time) and programming, production, and post-production services.

Statistics:

  • The TV cable, pay, and broadcast network industry in the US includes approximately 2,600 networks and stations.
  • Combined annual revenue of the industry is $57 billion.
  • The top 50 companies account for 80 percent of revenue.
  • There are almost 2,000 broadcast TV firms and over 600 cable/subscription firms in the industry.
  • Broadcast TV accounts for slightly over half of industry revenue, and cable TV, for slightly less than half.
  • The average annual industry revenue per employee is $350,000.
  • Broadcast TV averages $257,000 per worker, and cable TV about $651,000.

Sources:

  • Research and Markets (http://www.researchandmarkets.com/research/42f3d1/tv_cable_pay_br)
  • Source: First Research
  • Source: Entertainment Newsweekly via VerticalNews.com