Cable Networks in the US - Industry Market Research Report

Channel Surfing: Economic Recovery and the Return of Live Sports to Tv Will Likely Boost Growth in Advertising Revenue

The Cable Networks industry exhibits a high level of market share concentration, with the four largest players, AT&T Inc., Walt Disney Company, NBCUniversal Media LLC and Viacom Inc., historically dominating the industry. Over the five years to 2019, these operators have held a declining majority share of industry revenue through various acquisitions.

Top companies reign supreme

The largest industry operators own the most popular and well-known channels, resulting in relatively steady demand. For example, MTV and Nickelodeon both reached over 1.0 billion subscribers worldwide in 2019. The largest player within the industry is Time Warner, owned by AT&T. Time Warner operates in the industry primarily through its Turner and Home Box Office (HBO) segments. The company is vertically integrated with upstream content production, and now will also be integrated with downstream TV distribution following its acquisition by AT&T.

Industry leaders join streaming competitors

The industry has generally accepted new digital platforms, if reluctantly at first. Nevertheless, all of the prominent players in this industry now operate a streaming service or have indicated plans to launch one. In the case of AT&T, revenue has been bolstered by the popularity of HBO content and by the company's decision to offer a standalone streaming service, which bypasses cable providers and insulates it somewhat from cord-cutting trends.

Major players secure favorable contracts

Many smaller networks are also linked by programming or syndication agreements with these larger networks. There are, however, Federal Communications Commission limits on the extent of vertical integration between the cable networks and distributors. Since major media companies can negotiate significant contracts with cable providers to broadcast their hundreds of cable channel offerings at little cost, profit margins among the largest companies far exceed that of the average industry network.

This industry operates studios and facilities and distributes TV programs on a subscription or fee basis through cable providers and other platforms. Operators include specialty TV cable networks and pay-per-view programming. Programming production and satellite broadcasters are excluded from this industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.