Television is a relatively new invention, yet one that has dramatically impacted life for billions of people around the world. With satellite communication, instant news reports for virtually anywhere in the world can be delivered, letting people become more connected than ever before.
United States Television Industry Statistics
In the US, the Top 50 companies in this industry generate 90% of its total revenue.
Television is often seen as a form of entertainment in many nations, but it is a much more powerful tool than that. In countries like North Korea, television is utilized as a source of propaganda. It can be used for re-education. It’s also a tremendous source of tax revenues. In Canada, for example, the television industry provided $5.5 billion in total tax revenues.
3 Facts to Know About the TV Industry Right Now
1. 13% of people who have broadband internet access watch no traditional cable or broadcast television whatsoever, opting for subscription services like Hulu or Netflix instead.
2. 54% of US households subscribe to a digital cable service, which is a 3% increase from the previous year.
3. The average price to receive premium TV channels is expected to reach $86 by 2020. The average price in 2011 was just $21.
Takeaway: Why are television costs soaring for the consumer? Because there is a corresponding decline in advertising revenues. In the last year alone, advertising sales for TV broadcasters dropped over 9% worldwide. In order to provide quality programming, a certain bottom line must be met and this requires a financial need. If advertising revenue isn’t coming in, then it must come from the only other sources available – the consumer. This is why more people are transitioning to an internet-based TV model.
Other Facts to Consider About the TV Industry
1. The international sale of television broadcast rights and associated activities for UK produced programming exceeded 1 billion pounds in 2012 alone.
2. China is the fastest growing importer of television broadcast rights.
3. ESPN accounts for nearly $3 per month out of every cable bill – and that was in 2009!
4. The cost of connecting to a broadband internet connection is just 3% of the total revenues that are collected from that service.
5. Since September 2011, there has been negative ratings growth on broadcast and cable television with a brief exception for the Olympic Games.
6. In the last 4 years, more than 5 million people have ended both their cable and broadband subscriptions.
7. For the first time ever, cable TV subscribers at major providers will dip below 40 million people.
Takeaway: There’s a lot of blame that can be floated about, but there’s two basic reasons behind these drops: there’s not as much value in the product today as their used to be and people need to save money in some way. If a cable bill is over $100 and that could mean have three squares a day guaranteed if you had that money accessible, then people are generally going to choose food. With internet options available for a much lower cost and unlimited landline connections providing better value than broadband in some areas, it’s no wonder why subscribers are dwindling.