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TV Production

TV Production

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Executive summary

Over the five years to 2022, the Television Production industry has shrunk slightly amid upheaval in the US media landscape. Companies in this industry produce TV programming for sale to networks, broadcasting companies and online platforms. A decline in cable subscriptions and the emergence of online alternatives have increased competition among industry customers to acquire top content, and this competition has contributed to what critics have dubbed the golden age of TV. Over the five years to 2022, industry revenue is expected to fall an annualized 1.6% to $41.6 billion largely due to industry revenue falling an estimated 21.9% in 2020 alone as the COVID-19 (coronavirus) pandemic halted much of the industries operations. In 2021, however, revenue is estimated to have rose 5.9% due to a recovery from pandemic's adverse effects on the US economy. The industry is expected to have continued growing at a slower rate in 2022, growing an estimated 0.4% in that year alone.
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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 TV
The transmission of audio and video by digital signals, instead of the former analog signals. The transition to digital TV broadcasting was completed throughout the United States in mid-2009.

DIGITAL VIDEO RECORDER (DVR)
A device that records video in a digital format to a disk drive, USB flash drive, SD memory card or other storage device.

PILOT
The first episode of a new TV series that is produced to test its appeal on a network and its target audience. If it is received well, a series will be commissioned.

REALITY PROGRAMMING
A TV production that is filmed with a loose script or without one entirely.

SCRIPTED PROGRAMMING
A show, such as a drama, that is produced according to a written script.

Details

Streaming services have pursued new content in their quest to attract and retain consumers who are increasingly dropping their cable packages. Netflix Inc. (Netflix), the leader of the streaming video market, invested as much as $15.0 billion in content in 2019. Although a cord-cutting trend has hurt revenue for cable providers and networks, which are the main purchasers of TV content, production companies have benefited from the ensuing competition for viewers. Amid declining live TV viewership and proliferation of video options for consumers, networks have been pressured to increase their investment in content that will attract viewers through websites, streaming services or on-demand video. The average industry profit margin, measured as earnings before interest and taxes, is expected to account for 10.6% of revenue in 2022.

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