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TV Broadcasting

TV Broadcasting

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Executive summary

Over the five years to 2022, the Television Broadcasting industry has grown. Although traditional TV viewership is on the decline, free over-the-air broadcasters have benefited from a trend of consumer cord cutting. Up until 2020, advertising expenditure has grown steadily, helping industry operators sell their airwaves for commercials at more-favorable rates. However, these growth trends have been offset somewhat by the onset of COVID-19 (coronavirus), which led to a decrease in total advertisement expenditure as well as halted production of new TV content in 2020.
Despite pandemic restrictions in 2020, over the five years to 2022, the industry is expected to grow an annualized 2.6% to $72.8 billion, with revenue increasing 0.8% in 2022 alone. However, industry profit took a hit in 2019 and 2020, over the five years to 2022 is not expected to return to pre-pandemic levels.
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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;

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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.

Colloquial Terminology

DIGITAL VIDEO RECORDERS (DVR)
Devices that record video in a digital format to disk drives or other mass storage devices.

HIGH-DEFINITION TV (HDTV)
A digital TV broadcasting system with higher resolution than traditional TV systems.

MULTICASTING
The broadcast of more than one channel from the same network, potentially across a range of media, such as the TV and the internet.

RATINGS
A measure of viewership collected by The Nielsen Company's, which reflects the percentage of total TV-equipped households tuning into a program or channel during a period of time.

Details

In April 2017, the Federal Communications Commission voted to reinstate the ultra-high frequency discount. Under this rule, stations operating on the ultra-high frequency band only count half of the households they reach toward their ownership cap of 39.0% of US households. Stations that exceeded the cap after the repeal of the discount were grandfathered in, and most of the major broadcast companies were over or near their limit, though many companies were well below the cap. This provided room for players such as Sinclair Broadcasting Group Inc. to expand significantly during the five-year period, affecting the market concentration of the industry. Additional consolidation among major players is anticipated moving forward.

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