Report: Cable's the Tops in Media Profitability

In a new study on the growth and profitability of the media and entertainment industry released by Ernst & Young, cable operators showed the highest profitability among all media and entertainment sectors, and interactive media was the fastest growing sector...

In a new study on the growth and profitability of the media and entertainment industry released by Ernst & Young, cable operators showed the highest profitability among all media and entertainment sectors, and interactive media was the fastest growing sector within the industry. The report also indicates that, despite current perceptions, the media and entertainment industry as a whole is yielding greater profitability and growth than many other stock market indices. All measures of profitability and growth are based on EBITDA margins and dollars respectively.

The report, "Spotlight on profitable growth: media & entertainment," ranks 10 media and entertainment industry sectors on both their profitability and growth rate, as well as providing a performance comparison of the overall media and entertainment business to other stock market indices.

When looking at overall profitability during the period 2006-2010E, cable operators had the highest average profitability at 38%, followed by interactive media at 35%; cable networks at 31%; satellite TV at 27%; publishing at 20%; conglomerates at 19%; TV broadcast at 18% and film and TV production, electronic games and music, all at 11%.
More in Home