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Television Broadcasting Industries
2006
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Highlights
- The operating revenues of the television broadcasting industries totalled just over $6.0 billion in 2006, up 8.2% from 2005.
- Television broadcasters’ two main commercial revenue streams grew faster in 2006 than in the previous two years. Air time sales rose 7.6% to $3.3 billion, and subscription revenues jumped 11.3% to $1.6 billion.
- The overall picture for television broadcasting industries masks some substantial differences between the various segments.
- Private conventional television broadcasters reported revenues of $2.2 billion in 2006, unchanged from the previous year. Its profits before interest and taxes dropped by more than 62.5 % to $90.9 million in 2006. It was the first time in 15 years that this segment generated less than $100 million in profits before interest and taxes.
- Specialty television broadcasters topped the $2 billion mark in revenues in 2006, up 11.2% from the previous year. This segment made $447.8 million in profits before interest and taxes, slightly less than the $449.2 million it earned in 2005.
- Digital television remains a minor player in the specialty television industry from a revenue standpoint, but it is growing very rapidly. Its revenues have nearly quadrupled in five years.
- The revenues of pay television jumped 17.7% to $482.3 million in 2006, in large part as a result of the growing popularity of pay-per-view television and video-on-demand. Revenues from those services soared by 41% to $157.4 million in 2006.
- For the fifth consecutive year, pay television has generated the highest profit margin in the industry. More than a quarter of its revenues went back to company owners in the form of profits before interest and taxes.
- After seeing its revenues slump 5.2 % in 2005, public and non-profit television regained some momentum in 2006. Its total revenues climbed 15.6 % to $1.4 billion while its advertising revenues surged 44.2 % to $351.1 million, in large part as a result of the National Hockey League’s return to the fold.
