TV Broadcast & Cable Networks Industry Profile

The TV cable, pay, and broadcast network industry in the US includes more than 1,350 networks and stations with combined annual revenue of about $85 billion. Major broadcast TV networks are ABC, CBS, FOX, and NBC; major TV cable networks are Discovery Channel, ESPN, CNN, and TNT. Large non-network station groups include Sinclair Broadcast Group, Hearst Television, and Raycom Media. The industry is highly concentrated: the top 50 companies account for about 90 percent of revenue.

The industry includes more than 1,000 broadcast TV firms and over 350 cable/subscription firms; broadcast TV accounts for about 40 percent of industry revenue and cable TV, for about 60 percent. The industry doesn't include companies that broadcast primarily on the Internet, produce and sell taped TV programs, distribute cable and other TV programs, or use TV as a retail outlet.

COMPETITIVE LANDSCAPE

Business advertising, program popularity, and consumer demographics drive demand. 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 geographic area. Small companies can compete effectively with special programming that attracts a targeted audience. The industry is capital-intensive: average annual revenue per employee is about $440,000. For broadcast TV, revenue averages about $265,000 per worker; for cable TV, about $615,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major industry product lines are broadcasts (air time) and programming, production, and post-production services. ...