Satellite TV Providers in the US Industry Market Research Report Now Available from IBISWorld

The Satellite TV Providers industry is 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. For example, the introduction of high-definition TV vastly improved the quality of shows and attracted subscribers even as disposable income dropped due to jobs lost in the Great Recession. In addition to a dramatically improved reputation for quality, new networks, channel offerings and bonus features are strengthening the industry's appeal to consumers. For these reasons, industry research firm IBISWorld has added a report on the Satellite TV Providers industry to its growing industry report collection.

Los Angeles, CA (PRWEB) April 06, 2012

The Satellite TV Providers industry is in the midst of a revolution, supplying popular family shows, news, movies, sports, documentaries and other products to a growing swarm of eager subscribers willing to pay for in-home entertainment. For example, the introduction of high-definition (HD) TV vastly improved the quality of shows and attracted subscribers even as disposable income dropped during the Great Recession. “In addition to a dramatically improved reputation for quality, new networks, channel offerings and bonus features are strengthening the industry's appeal to consumers,” says IBISWorld industry analyst Doug Kelly. Higher spending on industry services is anticipated to result in 5.6% annualized revenue growth to $41.4 billion in the five years to 2012. This climb includes an expected 3.8% increase in 2012 as more consumers continue subscribing to satellite TV, especially after external competitor Netflix abruptly announced price increases for its streaming service in July 2011.

High initial fixed costs, which major players have already paid off, are a defining aspect of the Satellite TV Providers industry. Not only are they prohibitive to industry start-ups, but they also indicate the industry backers' confidence in the success of this distribution model. Satellite TV is attractive because of its ability to reach almost any place on the planet. Advancing technologies, like new data compression formats, have advanced the quality and speed of direct broadcast satellite (DBS) transmissions, making this medium more attractive to consumers, says Kelly. Likewise, with satellites already in orbit, existing companies like DirecTV and Dish Network have low costs per additional subscriber. Because these two companies dominate the industry, it has a high market share concentration. These companies have successfully expanded along with the industry by offering an increasing array of services and continually improving their quality. Major company Home2Us Communications Inc. comes in a distant third.

Over the next five years, the industry will face escalating competition from other media. The ability of major players to continue developing ways to retain and attract subscribers will determine the extent of revenue growth over this time. More aggressive marketing tactics are anticipated to cut slightly into industry profit. As a result, IBISWorld forecasts slower 3.1% annualized revenue growth over the next five years to $48.3 billion in 2017, driven largely by new subscribers. Household creation is projected to flourish toward the end of the period, growing an estimated 1.2% annually on average through 2017. This growth will partially drive new subscriptions. For more information, visit IBISWorld's Satellite TV Providers report in the US industry page.

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IBISWorld industry Report Key Topics

This industry is made up of companies that operate studios and facilities and 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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/4/prweb9376771.htm