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Media

Media

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Executive summary

The Information sector creates and distributes media content to US consumers and businesses. Overall, the sector responds to trends in household formation, which influences subscription volumes to communications services; advertising expenditure, which generates nearly one-fourth of sector revenue; and consumer incomes and spending habits, which influence the extent to which households purchase discretionary entertainment products. The industry also sells some products and services directly to businesses and is influenced to a lesser extent by trends in corporate profit and business sentiment. Over the five years to 2022, sector revenue is expected to increase an annualized 3.4% to $2.1 trillion, including a marginal increase of 0.8% in 2020 due to the broad economic factors surrounding the COVID-19 (coronavirus) pandemic. In 2022, revenue is expected to grow 2.5%.
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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;

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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.
IBISWorld 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 IBISWorld’s reports are made using the US Bureau of Economic Analysis’ 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.

Colloquial Terminology

BROADBAND
An internet connection with a minimum speed of 5.0 Mbps for downloads and 3.0 Mbps for uploads.

BUNDLED SERVICES
Bundled services include internet access and VoIP telephone service sold in combination with a cable TV subscription.

CIRCULATION
The number of copies of an average issue that a newspaper or periodical distributes.

CLOUD COMPUTING
A computing model in which storage and computing tasks are handled by networked machines (often servers in a data center owned by the service provider) rather than at the point of consumption.

INTERNET PROTOCOL
A communications protocol that enables data to be transmitted across network boundaries.

Details

Although consumer demand for media is generally steady and the sector has grown consistently, revenue flows within the sector are uneven and determined primarily by trends in technology. Strong growth over the past five years has stemmed in part from a proliferation of new consumer devices. However, much of the growth has been concentrated in online publishing and data processing, at the expense of more traditional information subsectors.
For example, new digital channels have detracted from print advertising expenditure, which has declined during the current period and curtailed print publishing. Along the same lines, an increase in mobile devices and the emergence of online streaming services have made consumers less reliant on more-traditional communication services such as wired voice, broadband internet and cable TV.

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