5-Year Cable Revenue Increases Could Top 5%

Cable operators are at the core of the cable-TV revolution, supplying popular family shows, news, movies, sports, documentaries and other products to a growing swarm of eager subscribers. even as disposable income dropped. New networks and channel offerings also have strengthened the industry’s appeal to consumers.

“Revenue is expected to increase at an annualized rate of 5.2 percent over the five years to 2012, despite a drop in advertising spending that stemmed from increased competition from other media (including the Internet) and lower corporate profit,” predicts IBISWorld industry analyst Agata Kaczanowska. “This growth was the result of increasingly specialized services that cable networks provide, enabling them to charge premium prices to key consumers. In 2012, the cable-networks industry is estimated to garner revenue of $17.9 billion, representing 5.5-percent growth that year.”
 
To keep up with the growing subscriber base, the industry is expanding its offerings and focusing on customer service and outreach. This trend involves social networking, Website development and application development along with traditional call centers. As a result, cable is expected to employ about more than 36,000 people in 2012, representing five-year annualized contraction of 0.2 percent, the research group adds.

New independent networks also are increasing in popularity, especially as production and distribution costs wane, Kaczanowska notes, adding, “This is the chief reason for 0.8-percent annualized enterprise growth to 406 firms in 2012. The cable-networks industry is projected to fare well during the next five years. Further consolidation within the industry is projected to continue to strengthen the position of industry operators, leading to a continued growth in profit.”