Satellite TV Providers in the US - Industry Market Research Report

The United States satellite TV providers market has posted solid growth over the past five years, supplying a variety of programming to a broadening subscriber base willing to pay for in-home entertainment. New networks, more channel offerings and bonus features have continued to strengthen the industrys appeal to consumers, even as disposable income dropped during the recession. For example, the introduction of high-definition (HD) TV not only vastly improved the quality of programming, but also attracted new subscribers. Higher spending on industry services is anticipated to result in an annualized revenue growth rate of 5.6% over the five years to 2012. In 2012 alone, revenue is expected to have increased 3.8% to $41.4 billion as more consumers subscribe to satellite TV.

High initial fixed costs, which major players have largely already paid off, are a defining aspect of this industry. While they are often prohibitive to industry start-ups, they also indicate industry backers high confidence in the success of industry firms. Satellite TV is attractive to investors because of its ability to reach almost any place on the planet. Progressive technologies, like new data compression formats, have advanced the quality and speed of direct broadcast satellite (DBS) transmissions, increasing the mediums marketability. Further, with satellites already in orbit, existing companies, like DirecTV and Dish Network, only incur low costs per additional subscriber. By keeping other costs stable, the industry is expected to have earned a healthy profit of about 16.0% of revenue (earnings before interest and taxes) in 2012. However, as internal and external competition heat up, firms may be unable to pass on increasing programming costs to customers, which may dampen profitability.

Over the next five years, the industry will face escalating competition from other media. Therefore, more aggressive marketing tactics are expected to cut slightly into industry profit. However, the ability of major players to continue developing ways to retain and attract subscribers will determine the level of industry revenue growth. With an anticipated rise in new subscribers during the five years to 2017, IBISWorld forecasts revenue to increase at an annualized 3.1% to $48.3 billion. The number of households is projected to flourish toward the end of the period, growing an estimated 1.1% per year on average over the five-year period. This growth will partially drive increasing subscriptions.

Report Scope

Satellite TV providers are in the midst of a revolution, supplying popular family shows, news, movies, sport, documentaries and other products to a growing swarm of eager subscribers who are willing to pay for in-home entertainment. The introduction of high-definition TV vastly improved the quality of shows and attracted subscribers even as disposable income dropped during the recession. New networks, channel offerings and bonus features are strengthening the industrys appeal to consumers despite increasing competition from mobile internet streaming.

This industry is made up of companies that distribute TV programs on a subscription or fee basis through direct broadcast satellites (DBS). It excludes other satellite telecommunications providers, TV production studios, traditional TV broadcasters and cable networks.

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.