Media Networks & Internet Broadcasting
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,200 media networks and internet broadcasting firms in the US provide information and entertainment to customers through online channels and supply traditional outlets including radio, television, cable, satellite, and other subscription programming. The Internet broadcasting industry includes subscription video-on-demand (SVOD) services, and multichannel video programming distributors (MVPD). Radio and television broadcasting stations and publishers of original content are covered in separate industry profiles.
Fierce Competition for Subscribers
As the video streaming market becomes increasingly crowded, competition for subscribers and quality content is squeezing industry profits.
Rampant Piracy
Pirated content is a growing risk to streaming services.
Industry size & Structure
A typical firm operates out of one to three locations, employs 56-57 workers, and generates $43 million in annual revenue.
- The media networks and internet broadcasting industry consists of about 4,200 firms that employ about 237,500 workers and generate about $182.5 billion annually.
- 85% of US households have at least one video streaming subscription and 60% have at least one paid music streaming subscription, according to Kantar.
- Amazon Prime Video, Netflix, and Max are the leading streaming services in the US in terms of market share, according to Statista.
- Major companies include Comcast, Warner Media, Netflix, Sirius XM Holdings, Spectrum, and the Big 4 television networks ABC, CBS, Fox, and NBC.
Industry Forecast
Media Networks & Internet Broadcasting Industry Growth
Recent Developments
Aug 4, 2024 - Streaming Hits Record Viewership
- Streaming services reached a record share of 40.3% of US TV viewership in June, leaving cable and broadcast far behind at 27.2% and 20.5% respectively, according to Nielsen’s The Gauge, a monthly report on TV viewing behavior. Streaming first surpassed cable TV in July 2022 and, aside for some seasonal fluctuations, its share of TV viewing has continued growing steadily since then. It's typical for linear TV to see a lull in viewership during the summer months, which partly explains the 1.5 percentage point increase in streaming's viewing share in June, according to Nielsen.
- Streaming service Netflix is increasingly relying on licensed content to increase viewership, according to The Wrap. Media networks may benefit from licensing of their shows by the largest subscription video on demand service. The move is a departure from Netflix’s hyper-focus on producing original programming that peaked in 2019 and 2020. The number of licensed shows on Netflix has increased around 6% since November 2023, making up 35% of the platform’s TV catalog as of June 2024, according to Parrot Analytics’ Content Panorama.
- The cable television industry, stung by cord-cutters defecting to streaming services, is exploring ways to bundle streaming and live TV, according to The Wall Street Journal. Some 87% of American homes had a cable or satellite television subscription in 2015, according to Nielsen. Only 47% of homes subscribed by 2023. About 73% of viewers now choose streaming before cable or broadcast when they sit down to watch TV, according to a 2024 survey by digital marketing agency Adtaxi. Just 42% said streaming was their default choice a year earlier.
- Media network & internet broadcasting industry employment decreased slightly during the first six months of 2024 while average wages for nonsupervisory employees increased slightly, according to the US Bureau of Labor Statistics (BLS). Media networks & internet broadcasters slightly decreased their prices during the first six months of 2024, according to the BLS. Linear broadcasting networks primarily derive revenue from affiliate fees and advertising sales. Internet broadcasters rely on monthly or annual subscription fees and to a lesser extent, advertising, for revenue.
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