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Cable Networks

Cable Networks

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Executive summary

Operators in the Cable Networks industry produce and acquire programs that it then supplies to third-party broadcasters for dissemination. The industry has responded to waning TV subscriptions by expanding its premium content offerings over the five years to 2022. In addition, the industry also derives a significant portion of its revenue from advertising fees. Therefore, industry revenue benefited as total advertising expenditure in the US rose to unprecedented levels. However, the rise in online streaming services and the recent spread of COVID-19 (coronavirus) deterred industry performance. Overall, M-Ysland LLC projects industry revenue will decline an annualized 1.5% over the five years to 2022, dropping to $ 94.1 billion in 2022, despite growing 0.9% in 2021 and an expected 0.1% in 2022 as the economic fallout of the coronavirus pandemic gives way to an economic recovery.
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Each report includes:

industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

Collapsible content

Reference Wordlist

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. M-Ysland LLC uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $1 of labor; medium is $ 0.125 to $ 0.333 of capital to $1 of labor; low is less than $ 0.125 of capital for every $1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in M-Ysland LLC`s reports are made using the US Bureau of Economic Analysisā€™ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

Colloquial Terminology

CHURN
The rate of increase at which customers discontinue their service on a voluntary or involuntary basis.

DIGITAL
Content provided in a digital format instead of the former analog connection.

FEDERAL COMMUNICATIONS COMMISSION (FCC)
An independent US agency that regulates radio and TV communications.

HIGH-DEFINITION (HD)
A TV system that has about twice as many scan lines per frame than a conventional system and a proportionally sharper image.

SMALL CABLE OPERATOR
An operator that serves less than 1.0% of all subscribers in the United States and that is not affiliated with entities earning gross annual revenue of more than $ 250.0 million.

Details

Streaming video platforms represent an additional media outlet for industry content as these providers license content from industry operators. However, streaming platforms moved to offer original content, which have enabled these platforms to become a primary competitor to the industry. Large industry operators have been quick to embrace new digital platforms. WarnerMedia, now a subsidiary of AT&T Inc., launched HBO Max in 2020. The Walt Disney Company launched Disney+, a stand-alone streaming service, while also acquiring 21st Century Fox Inc. and buying out partners in Hulu to bolster its digital offerings. Although industry competition has increased, profit has remained significant because many of the largest networks wield substantial market power over content distributors.

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