cable across america: an economic impact report

Transcription

CABLE ACROSS AMERICA:
AN ECONOMIC IMPACT REPORT
BORTZ MEDIA & SPORTS GROUP, INC. 2013
NATIONAL CABLE & TELECOMMUNICATIONS ASSOCIATION
2012
25 MASSACHUSETTS AVENUE, NW SUITE 100
WASHINGTON, DC 20001
P: (202) 222-2300
NCTA.COM
CABLE ACROSS AMERICA:
AN ECONOMIC IMPACT REPORT
2012
BORTZ MEDIA & SPORTS GROUP, INC. 2013
CABLE ACROSS AMERICA: AN ECONOMIC IMPACT REPORT
© 2013 National Cable & Telecommunications Association
25 Massachusetts Avenue, NW Suite 100, Washington, DC 20001-1413
ii
BORTZ MEDIA & SPORTS GROUP
TABLE OF CONTENTS
EXECUTIVE SUMMARY�� 1
SECTION I.
CABLE AND PROGRAM NETWORK INDUSTRY STRUCTURE AND FINANCIAL FLOWS�� 6
Overview/Methodology
7
The Program Network Industry
7
Cable Industry Structure and Financial Flows
7
System Operations
8
Capital Expenditures
10
Financing Activities
10
Cable Network Advertising
11
Cable Industry Suppliers
12
Dollar Flows 12
Information 12
Utilities
13
Construction 13
Manufacturing 13
Transportation/Warehousing 13
Wholesale and Retail Trade 13
Finance/Insurance 14
Real Estate 14
Professional/Technical/Management/Administrative Services
14
Arts/Entertainment/Recreation and Other Services 14
Summary 14
Program Network Industry Structure and Financial Flows
15
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SECTION II.
ECONOMIC IMPACTS OF THE CABLE INDUSTRY��18
Direct Impacts
19
Employment
19
Direct Employee Compensation
20
Linked Economic Activity
20
Total Economic Impacts
21
Combined Direct and Linked Impacts
21
Employment and income 22
Output
23
Impacts by State and Congressional District
23
Cable Industry Growth: 2002–2012
24
SECTION III.
ECONOMIC IMPACTS OF THE PROGRAM NETWORK INDUSTRY��26
iv
Direct Impacts
27
Linked Economic Activity
28
Employment and Income
30
Total Economic Impact
31
SECTION IV.
OTHER CABLE AND PROGRAM NETWORK
INDUSTRY PERSPECTIVES��34
The Cable Industry: Capital Investment Fostering Competition
35
Advanced Video Services
36
High-Speed Internet Service
37
The “Broadband Bonus”
38
Digital Voice Service
38
Cable, Program Networks, and Viewing
39
Choice and Flexibility
39
Combining Variety with Control
40
Viewing
41
Program Quality
42
Cable and Program Network Industry Contributions to Communities
44
Financial Contributions
44
Community Involvement
45
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APPENDIX A.
METHODOLOGY AND DATA SOURCES�� 48
Overview
48
Direct Dollar Flow Estimation
48
Projection of Economic Impacts
49
Comparison with Earlier Studies
50
Limitations
50
APPENDIX B.
CABLE EMPLOYMENT AND BY
STATE AND CONGRESSIONAL DISTRICT�� 52
vi
Alabama
53
Alaska
55
Arizona
56
Arkansas
58
California
59
Colorado
64
Connecticut
66
Delaware
67
District Of Columbia
68
Florida
69
Georgia
72
Hawaii
74
Idaho
75
Illinois
76
Indiana
78
Iowa
80
Kansas
81
Kentucky
82
Louisiana
83
Maine
84
Maryland
85
Massachusetts
87
Michigan
89
Minnesota
91
Mississippi
93
Missouri
94
Tennessee
119
Montana
96
Texas
121
Nebraska
97
Utah
124
Nevada
98
Vermont
125
New Hampshire
99
Virginia
126
New Jersey
100
Washington
128
New Mexico
102
West Virginia
130
New York
103
Wisconsin
131
North Carolina
106
Wyoming
133
North Dakota
108
Ohio
109
Oklahoma
111
Oregon
112
Pennsylvania
113
Rhode Island
115
South Carolina
116
South Dakota
118
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LIST OF TABLES AND FIGURES
FIGURE I–1.
Income Sources and Flow of Economic Impacts Generated
by the Cable Industry�� 8
TABLE I–1.
Growth in Cable Systems Revenues, 1990–2012�� 9
TABLE I–2.
Cable System Funds Flow Comparison, 1990–2012�� 9
TABLE I–3.
Growth in Cable Network Gross Advertising Revenues, 1990–2012*�� 11
TABLE I-4.
2012 Linked Supplier Revenues�� 12
TABLE I–5.
Program Network Funds Flows, 2012*�� 16
TABLE II–1.
Cable Industry Linked Supplier Employment & Employee Compensation, 2012�� 20
TABLE II–2.
Cable Industry Combined Direct & Linked Impacts, 2012�� 21
TABLE II–3.
Cable Industry Total Economic Impacts, 2012*�� 22
TABLE II–4.
Cable Industry Growth Indicators, 2002–2012�� 24
viii
TABLE III–1.
Program Network Production & Acquisition Expenditures, 2012�� 29
TABLE III–2.
Program Network Industry Production and Sports Links, 2012�� 30
TABLE III–3.
Program Network Total Economic Impacts, 2007–2012�� 31
FIGURE IV–1.
Cable Industry Capital Expenditures, 1996–2012�� 35
FIGURE IV–2.
Cable High Speed Internet Customers, 2002–2012�� 37
FIGURE IV–3.
Cable Telephone Service Customers, 2002–2012�� 38
FIGURE IV–4.
Basic Network Total Day Household Delivery�� 41
FIGURE IV–5.
Total Basic Network Program Investment, 1990–2012�� 42
FIGURE IV–6.
Average Program Investment for Top 10 Basic Networks, 1997–2012�� 43
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EXECUTIVE SUMMARY
2012
CABLE INDUSTRY ECONOMIC IMPACT
U.S. jobs represent
more than $89 billion in
personal income
2
89
$
As of 2012, the cable industry
(directly and indirectly)
accounts for nearly two million
U.S. jobs
MILLION
BILLION
291
$
BILLION
Gross economic output
attributable to the
industry amounts to more
than $291 billion
CABLE CREATES JOBS
381,300
824,000
235,100
54,000
people directly employed by cable operators, program
networks, and other linked suppliers with $33.1 billion
in compensation.
people directly employed by cable operators with
$19.9 billion in compensation.
new jobs were directly and indirectly attributed to the
cable industry over the past decade.
people directly employed by cable program networks
with $8.1 billion in compensation.
300 to 3,000+
cable employees found in every congressional district. CABLE IS LOCAL!
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SUMMARY
The cable industry delivers entertainment, information and telecommunications services to tens of millions of
American consumers and businesses. Through its aggressive re-investment of capital and efforts to deploy new
and innovative services to consumers, the industry has fostered the development of a highly competitive market
and has been a catalyst for broadband growth in the U.S. Through these investment and innovation initiatives,
the industry has exerted a substantial impact on the United States economy. In addition, the subscription
television program network industry has a substantial economic impact of its own – one that is both linked to
and distinct from its role as a supplier to the cable industry.
BROADBAND
Made possible by an infrastructure investment of more than $200 billion over
the past 15 years, the cable industry has led the development of broadband
Internet service in the U.S., providing service to over 50 million customers as
of year-end 2012. For most U.S. homes, cable companies provide the fastest
broadband speeds, with standard cable broadband speeds ranging from
10 Mbps to 20 Mbps and more than 105 million U.S. homes with access to
speeds of 50 Mbps or greater.
TELEVISION
The cable industry’s innovation has greatly improved the television services
available to American consumers, delivering service to 56 million subscribers
at the end of 2012. Nearly all digital cable customers have access to
video-on-demand programming, with most programming available at no charge.
Twenty-four million cable customers have digital video recording capability,
and more than 30 million cable homes had HDTV-enabled set-top boxes as of
year-end 2012.
TELECOMMUNICATIONS
Cable has fostered true competition in local telephone service, capturing
roughly 26 million customers by the end of 2012. Cable operators now make up
five of the top 10 residential phone companies in the country.
COMMUNITY
Throughout the nation, the cable industry significantly contributes to charities,
non-profit organizations and state/municipal coffers. In 2012, franchise fees
paid directly to municipalities totaled $2.2 billion, and sales and use taxes
associated with cable service totaled $2.8 billion in state and local government
revenues. And the industry’s public service announcements (including both cable
operators and program networks) as well as cash and “in-kind” contributions to
local and national non-profit organizations exceeded $1 billion In 2012.
3
DIRECT AND INDIRECT IMPACT
As of 2012, the cable industry (directly and indirectly) accounted for two million U.S. jobs representing $89
billion in personal income. Gross economic output attributable to the industry amounts to $291 billion. Since
2002, direct and indirect employment attributable to the cable industry has increased by 824,000 jobs.
OPERATOR
IMPACT
$104 BILLION
Cable operator revenues in 2012 totaled
$104 billion, providing direct employment
to 235,100 people. Compensation to cable
industry employees totaled $19.9 billion.
50 STATES
Cable industry employees can be found in all
50 states, as well as the District of Columbia
and U.S. territories.
235,100 JOBS
In 2012, 235,100 people directly employed
by cable operators with $19.9 billion in
compensation.
Considering only employment increases
attributable directly to cable operators,
growth since 2002 totals over 59,000 jobs –
or 1.3 percent of all net new jobs created in
the U.S. during the last decade. The industry’s
addition of 6,100 jobs over the last five
years is particularly impressive in light of the
U.S. economy’s net loss of jobs in the same
time frame.
1
PROGRAMMER
IMPACT
$70 BILLION
Program network revenues in 2012 totaled
$70 billion, providing direct employment to
54,000 people – an increase of 7,500 jobs since
2007. Compensation to program network
industry employees totaled $8.1 billion.
$28.3 BILLION
As a measure of the industry’s commitment to
programming quality, the annual spending on
programming by basic networks grew from
$1.4 billion in 1990 to $28.3 billion in 2012.
Spending has tripled in the last 10 years. The
top 10 cable networks spent an average of
nearly $1.1 billion per network during 2012,
compared with $732 million in 2007 and just
$267 million in 1997.
213,000 NEW JOBS
As of 2012, the program network industry
(directly and indirectly) accounted for 980,000
U.S. jobs representing $36 billion in personal
income.
The
programming
industry’s
direct and indirect employment impact has
increased by 213,000 jobs in the last five
years. Gross economic output attributable to
the industry amounts to over $123 billion1.
The total impacts reported here accurately reflect the economic impacts of the program network industry. However, since the program network industry
is a supplier to the cable industry, a portion of the program network industry’s total impacts are also subsumed in the total impacts estimated for the
cable industry. As such, the total impacts for the two industries as presented in this report are not additive.
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SECTION I.
CABLE AND PROGRAM NETWORK INDUSTRY
STRUCTURE AND FINANCIAL FLOWS
E
conomic impact analysis recognizes the interdependence among various sectors of the national economy –
that dollars invested by a business or an industry help stimulate business activity and personal consumption
throughout the economy. As a result, the presence and growth of a particular industry generates total economic
effects several times larger than the industry itself. In this report, Bortz Media has applied the principles of
economic impact analysis to the cable and program network industries, based on our assessment of each
industry’s financial and investment characteristics.
This section briefly summarizes the attributes of economic impact analysis and the methodology employed
in our assessment, followed by discussion of the major assumptions underlying our estimates of the cable
industry’s impact in 2012. These assumptions primarily include the structure of the industry, estimates of 2012
industry financial flows and the role and characteristics of cable industry suppliers. The program network
industry’s role as a cable industry supplier and its structure is also briefly addressed.
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OVERVIEW/METHODOLOGY
This economic impact analysis traces the flow of
cable industry generated dollars (and related jobs
and personal income) throughout the economy,
recognizing that a portion of each dollar spent initially
by each industry is re–spent several times. For example,
assume that a cable subscriber pays his or her local
cable operator for a subscription to Home Box Office
(HBO). The cable operator then pays a portion of that
subscription fee to HBO. HBO, in turn, pays a portion
to its employees, who may then use that income to
purchase goods and services. Ultimately, the dollars
initially paid by the cable subscriber are re–spent
many times over, by many different businesses and
individuals, in many different sectors of the economy.
In measuring these re–spending effects, impacts are
categorized as follows:
• Direct impacts. These are impacts generated
directly by cable operators, including cable system
jobs and employee income.
• Linked impacts. These are impacts generated by
cable industry suppliers such as programming
services,
equipment
manufacturers
and
professional services firms.
• Indirect impacts. Indirect impacts include: (1)
economic activity generated by the purchase of
goods and services by firms dependent upon the
cable industry (i.e., linked suppliers), referred to
as intermediate effects; and (2) induced effects,
or economic activity generated by the purchase of
goods and services by individuals whose incomes
derive directly or indirectly from the cable industry.
For purposes of simplification, only direct, linked and
total impacts (combining direct, linked and indirect
impacts) are presented in this report.
Bortz Media’s impact estimation methodology is
described in greater detail in Appendix A. Briefly,
Bortz Media developed estimates of cable industry
financial flows (including both direct and linked
economic activity), and allocated these flows into
more than 40 separate economic sectors. Aggregate
economic effects attributable to these financial flows
were then estimated using multipliers obtained from
the Regional Input–Output Modeling System (known
as RIMS II) developed by the Bureau of Economic
7
Analysis at the U.S. Department of Commerce. RIMS
II provides a comprehensive tool for quantifying the
linkages between economic sectors and estimating
aggregate economic impacts.
THE PROGRAM NETWORK INDUSTRY
As indicated above, the subscription TV program
network industry is both a key supplier to the cable
industry and a substantial industry in its own right. In
this report, Bortz Media has evaluated the program
network industry on both levels – first considering
the industry in its supplier role and its resulting
contribution to the total economic impact of the cable
industry (in Section II), and subsequently evaluating
the direct, linked and total economic impacts
specifically attributable to the program network
industry (in Section III). The methodology employed to
estimate the impact of the program network industry
is essentially the same as that used in evaluating the
cable industry’s impact.
CABLE INDUSTRY STRUCTURE
AND FINANCIAL FLOWS
Figure I–1 depicts the overall structure of the cable
industry and the resulting flow of economic impacts
generated by the industry. As the figure indicates, the
industry captures subscription and other revenues
from the sale of cable television services, high–speed
Internet access services and telephony services. In
addition, both cable operators and program networks
generate revenue from the sale of advertising,
although the large majority of these advertising
revenues go directly to the program networks.
These revenues, and (more specifically) the manner in
which they are spent to deliver the services provided,
are reviewed in the remainder of this section. In
particular, four aspects of the industry structure are
the focus of the discussion:
• System operations
• System capital expenditures
• Financing activities (including system sales)
• Network advertising
FIGURE I–1.
INCOME SOURCES AND FLOW OF ECONOMIC IMPACTS GENERATED
BY THE CABLE INDUSTRY
Other Revenue
Sources Including:
• Local Ad Sales
• Video–on–Demand
• Business Services
Subscription Fees:
• Cable TV
• High Speed Internet
• Telephone
Cable
System
Revenue
Network
Ad Revenue
Cable
Operator
Employment
Personal
Income
Program
Services
Purchase of Other
Goods & Services
for Operations
Capital
Expenditures
Interest & Other
Transaction Fees
Linked Impacts:
Firms Supplying
Goods & Services
Franchise Fees,
Federal, State and
Local Taxes
Direct Income
Indirect Income
Re–Spending
of Income
SYSTEM OPERATIONS
Indirect Impacts:
Individuals
Purchasing Goods
and Services
The majority of the cable industry’s impact is attributable
to revenues and expenditures by the more than 7,100
local cable facilities serving communities throughout
the U.S. Revenues generated by these systems are
estimated to have exceeded $103 billion in 2012, or six
times the industry’s revenues in 1990.2
2
Revenues for 1990, 2002, 2007, 2010 and 2012 are Bortz Media
estimates; revenues for 1996 are based on Kagan World Media,
Broadband Cable Financial Databook 2002, p. 7.
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TABLE I–1.
GROWTH IN CABLE SYSTEMS REVENUES, 1990–2012
CABLE SYSTEM REVENUES (Billions)
$94.4
$104.5
$78.6
$48.2
$17.3
1990
$29.6
1996
2002
2007
2010
2012
The vast majority of these revenues consist of subscription fees paid by consumers and businesses for video
programming, high–speed Internet access, telephone services, and related equipment. In particular, growth
in revenues from the provision of services to local businesses has been substantial over the past few years. A
small fraction of operator revenues (about seven percent) come from the sale of national, regional and local
advertising and from other sources such as video–on–demand and home shopping service commissions.
These revenues are utilized to compensate employees and to purchase goods and services necessary to
operate the business (e.g., programming, system power and other utilities, pole and conduit rental, etc.). Funds
remaining after direct operating expenses (termed “operating cash flow” or “EBITDA”) are available for interest
payments, taxes, capital expenditure investment and distribution. (As discussed further below, the cable
industry has in recent years, including 2012, re–invested – in the form of capital expenditures – a substantial
percentage of the industry’s collective operating cash flow.)
Table I–2 below summarizes the flow of funds from operations during 2012 and compares these funds’ flows
to those in 1990, 2002, 2007 and 2010:3
TABLE I–2.
CABLE SYSTEM FUNDS FLOW COMPARISON, 1990–2012
(Billions)
2012
$104.5
$64.8
$39.7
38%
2010
$94.4
$58.1
$36.4
38.5%
2007
$78.6
$48.7
$29.9
38%
2002
$48.2
$30.4
$17.8
36.9%
1990
$17.3
$9.8
$7.4
43%
Operating
Revenues
Operating
Expenses
Operating Cash Flow/
EBITDA
Operating
Margin
3
9
Bortz Media estimates based on 2010 operating data for public cable companies; Federal Communications Commission (FCC), Annual Assessment
of the Status of Competition in the Market for the Delivery of Video Programming, December 31, 2007; and Kagan World Media, Broadband Cable
Financial Databook 2002, p. 144.
It is important to note that, while cable operator
revenues have grown substantially over the past 20
years, operating expenses have increased to an even
greater degree. As a result, operating cash flow, or
EBITDA, margins in the industry.
CAPITAL EXPENDITURES
In addition to operating revenues and expenses, cable
operators also make ongoing capital investments
in their systems. These capital expenditures reflect
several types of activity, including upgrading of systems
(to increase capacity and support new services),
new construction (extending service to additional
homes and businesses), purchase of customer
premise equipment (e.g., digital set–top boxes, cable
modems, telephone network interface units, etc.) and
maintenance. It also includes increasing amounts
invested to provide services to business customers –
reflecting the industry’s growing commitment to the
business community.
The cable industry is capital intensive by nature,
and the industry’s focus on upgrading its network
infrastructure and deploying new services that
require the placement of new technology in
customers’ homes has necessitated consistently
large capital expenditures. In 2012, Bortz Media
estimates that cable operator capital investment
totaled $15.0 billion.4
Notably, the industry’s capital investment in 2012
exceeds cable’s absolute dollar commitment
during most years of the intensive industry–wide
4
Bortz Media estimate based on public
cable company operating data.
infrastructure upgrade that took place in the late
1990s and early 2000s. This is largely due to the high
cost of the advanced in–home technology that is in
increasing demand by subscribers, as well as the
support infrastructure associated with the delivery of
advanced services.
Estimated capital investment reflects both capitalized
construction/maintenance labor and equipment/
materials purchases. For the purpose of this analysis,
estimates have been made regarding the proportion
of labor expenditures paid to outside contractors
relative to those paid to cable system employees. In
addition, the equipment purchase component has
been adjusted downward to account for the off–shore
manufacturing of certain cable equipment.
FINANCING ACTIVITIES
Cable–related financing activities result in additional
expenditures and economic impacts not accounted
for in estimates of either system operations or capital
spending. Financial transactions encompass both
capital formation (i.e., debt and equity financing)
and the purchase and sale of cable properties. In
addition, the cable industry makes substantial interest
payments annually on its outstanding debt.
The industry is estimated to have applied its resources
in 2012 primarily toward capital investment (see
above) and debt reduction. Even so, it is estimated
that approximately $6.3 billion in interest payments
were made during 2012.5
5
Bortz Media estimate based on public company data and SNL
Kagan, Broadband Cable Financial Databook, 2012 Edition.
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CABLE NETWORK ADVERTISING
“Basic” programming networks, such as ESPN, TNT and CNN, generate revenues from two primary
sources – license fees paid by cable operators and the sale of advertising. Operator license fees are accounted for
in the cable system operating expenses set forth earlier. In contrast, advertising revenues of the basic networks
(and other, smaller network revenue streams such as revenues derived from the syndication of programming)
represent an additional source of funding for these programming services.
Growth in the number of networks, the number of households served by individual networks, and the aggregate
audience attracted by those networks have contributed to corresponding growth in gross cable network
advertising revenues. Since 1990, gross cable network ad revenues have increased from less than $2 billion to
over $29 billion.6
Advertising agency commissions on these cable network revenues are estimated to be almost $4.4 billion for
2012. In addition, these revenues (along with the network intake from license fees and other sources) fund the
acquisition of programming, the compensation of employees and other network expenditures.
TABLE I–3.
GROWTH IN CABLE NETWORK GROSS ADVERTISING REVENUES, 1990–2012*
(Billions)
1990
$1.9
1996
$5.1
2002
$11.2
2007
$19.9
2010
$23
2012
$29
*These revenues reflect payments made directly to cable
programming networks by advertisers. They are separate
and distinct from the local advertising revenues generated
by cable system operators, which are estimated to have
totaled about $4.9 billion on gross basis during 2012.
Advertising revenues generated by cable networks are a function of the networks’ total reach, including
households receiving the networks from cable operators as well as from other distributors (i.e., primarily DBS
providers). For the purpose of this analysis, Bortz Media estimates that about 57 percent of network advertising
revenues can be attributed to the distribution provided by the cable industry.
6
11
Bortz Media estimates for 2012. Historical data based on SNL Kagan, Media Trends, 2010 Edition; and estimates of revenues generated by regional
sports and news networks.
CABLE INDUSTRY SUPPLIERS
Based on the flow of funds described above, cable
operator expenditures during 2010 included nearly
$65 billion in operating expenses, more than $11
billion in domestic capital expenditures7 and nearly
$100 million in commissions and other fees associated
with operator financing activities. Nearly $20 billion of
these expenditures (or roughly 26 percent) are paid
directly to cable industry employees in the form of
wages and other compensation, and over $3 billion
represent bad debt, certain taxes and other payments
to governmental entities. Even so, the remaining $53
billion go to purchase goods and services from industry
suppliers. In addition, advertising revenues flowing
to program networks (and related commissions to
advertising agencies) as a result of distribution via
cable system operators exceeded $17 billion in 2012.
Cable industry suppliers are found throughout
most major sectors of the national economy. Many
of these firms, such as utilities, leasing companies,
financial/professional services firms and insurance
carriers, provide services to cable operators as well
as an array of other businesses. Other suppliers,
such as programming networks, customer billing
companies, certain manufacturers and construction
firms, and brokers, specialize in the cable industry and
garner all or a substantial majority of their revenue
from cable companies.
The estimated overall distribution of 2012 cable
expenditures among the various major economic
sectors is summarized below, followed by a brief
description of the principal suppliers represented
within each sector.
DOLLAR FLOWS
As summarized above, Bortz Media estimates that
total cable–related dollars flowing to firms directly
supplying goods and services to cable operators
approximated $70.1 billion during 2012.8
TABLE I-4.
2012 LINKED SUPPLIER REVENUES
(Billions)
Utilities
$1.0
Construction
$4.1
Manufacturing
$9.0
Transportation/Warehousing
$0.1
Wholesale and Retail Trade
$3.5
Information
$40.4
Finance/Insurance
$0.7
Real Estate
$3.9
Prof./Mgmt/Admin. Services
$7.1
Arts/Ent./Rec./Other Services
$0.1
Total
*Column may not add to total due to rounding
$70.1
INFORMATION
The information sector obtains by far the largest
revenues from the cable industry, due primarily to the
more than $24 billion in cable industry expenditures
captured by program networks in the form of license
fees paid by cable operators and another $14 billion
in cable–attributable advertising revenues generated
directly by the networks.
7
This figure is smaller than the total capital expenditure estimates discussed elsewhere in this report due to the exclusion of the portion of capital
investment that is spent outside the U.S. (Cable operators purchase the bulk of their equipment and materials from U.S.–based companies.
However, certain electronics and other components are manufactured outside the U.S.)
8
Total linked economic activity is the sum of cable operator expenses (including domestic capital investment and fees related to financing
activities) plus the cable–related advertising revenues of basic cable networks, less direct employee compensation, bad debt, certain taxes and
other payments to governmental entities. Distribution by sector is a Bortz Media estimate based on the NAICS classification format of the U.S.
Department of Commerce. Our use of the NAICS format (adopted in 1997 to replace the historical Standard Industrial Classification or SIC) is
discussed in more detail in Appendix A.
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UTILITIES
This sector includes payments by cable operators for system
power and general heating, lighting and water needs.
Expenditures during 2012 are estimated to have exceeded
$1.04 billion, primarily to power utilities to cover pole/conduit
rental and meet system power requirements. Because local
cable systems serve communities throughout the country,
these expenditures are distributed among utilities across
the United States.
CONSTRUCTION
This sector primarily reflects payments by cable operators
to providers of contract construction services. Expenditures,
which are estimated at more than $4.1 billion for 2012, are
used primarily to acquire labor and services connected with
equipment installation, system upgrades and line extensions
(i.e., the deployment of the cable network infrastructure to new
or previously unserved buildings and housing developments).
MANUFACTURING
The bulk of cable capital expenditures (as well as some
maintenance and replacement–related operating expenses)
go toward the purchase of subscriber equipment – including
digital set–top boxes, cable modems and telephone network
interface units – and “network” products including fiber optic
and coaxial cable, head–end equipment and node electronics.
As discussed earlier in this section, the vast majority of
cable industry purchases of this type are from U.S.–based
manufacturers. However, the actual fabrication and assembly
of many of these products occurs outside of the United States.
Even so, we estimate that expenditures remaining in the U.S.
amounted to approximately $9.0 billion in 2012.
TRANSPORTATION/WAREHOUSING
This sector receives only modest expenditures from the cable industry, principally associated with air travel by
cable employees.
WHOLESALE AND RETAIL TRADE
Cable operators are estimated to have purchased $3.5 billion in wholesale and retail goods during 2012. Most
of these expenditures are for the typical materials and supplies necessary to run a business, including paper
products, printed marketing materials, fuel for company vehicles, etc. Cable operator purchases from wholesalers
of cable–specific equipment could not be broken out and are therefore included in the manufacturing sector.
A specific note with respect to retail sales is the cable industry’s provision of home shopping program services
such as QVC Network and HSN. Retail sales of these companies during 2012 are estimated to have amounted
to over $11 billion. These sales (and their resulting economic impacts), while achieved primarily through the
subscription TV medium, are not directly accounted for in this study.9
9
13
While made possible by distribution on cable systems, these retail sales involve finished products developed and manufactured by other
industries. As such, it was determined that these sales should be excluded from the analysis.
FINANCE/INSURANCE
Linked activities in this sector include commercial and
investment banking and cable brokerage functions as well
as business insurance. Particularly in the banking segment,
providers to the industry include the major nationally based
firms as well as a number of smaller firms specializing in the
cable industry. As an illustration, the Television & Cable Fact
Book 2013 lists 100 firms offering brokerage or financing–
related services to the television and cable industries.10
Bortz Media estimates that direct payments to the financial
and insurance sector by the cable industry exceeded $700
million during 2012. Moreover, the industry is estimated
to have paid more than $6 billion in interest payments in
2012 – a portion of these payments will be used by financial
institutions to pay for the funds they loan (i.e., interest
payments to depositors) while the remainder constitute net
revenue to the financial institution. (The economic impact
of these interest payments to financial institutions is not
directly accounted for in this analysis.)
REAL ESTATE
Cable industry expenditures flowing to the real estate sector
consist primarily of rental payments associated with land,
office space and other facilities used by cable providers.
These facilities are located throughout the country,
and payments are spread among many different firms.
Expenditures during 2012 are estimated to have totaled $3.9 billion.
PROFESSIONAL/TECHNICAL/MANAGEMENT/ADMINISTRATIVE SERVICES
Cable industry payments to services firms in 2012 exceeded $7.1 billion. Commissions to advertising agencies
and rep firms were the largest single services category, accounting for over half of this total. Other major
categories included data processing services, legal, IT and accounting services, and collections. These payments
flow to literally thousands of local firms spread throughout the country.
ARTS/ENTERTAINMENT/RECREATION AND OTHER SERVICES
Payments flowing directly to these sectors are modest (just over $100 million in 2012), and include the portion
of copyright fees that are paid to sports leagues and franchises. It is important to note that payments to sports
entities, as reported here, do not include sports rights payments – which are typically a payment made by
program networks rather than by cable operators. These payments (and their impacts) are discussed separately
in Section III of this report.
SUMMARY
More than $70 billion flowed directly to cable industry suppliers during 2012. The employment and personal
income created by these expenditures and the subsequent economic impacts resulting from the flow of these
dollars throughout the U.S. economy are described in Section II.
10
Warren Communications News, Television & Cable Factbook 2013, Cable Volume 2, pp. E–132 to E–137.
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14
PROGRAM NETWORK INDUSTRY STRUCTURE AND FINANCIAL FLOWS
The program network industry’s role as a supplier to the cable industry is reflected in the preceding discussion.
Even so, the industry has experienced dramatic growth and exerts a substantial economic impact in its own
right. Its operational and financial characteristics are briefly summarized below as a prelude to the economic
impact discussion in Section III.
There are two primary categories of subscription TV program networks:
“BASIC” NETWORKS
“PREMIUM” NETWORKS
Networks in this category are typically combined
with a large number of other networks as part
of one or more subscription packages offered by
distributors including cable operators, satellite
providers and telephone companies. The basic
networks generally derive revenue from two principal
sources – license fees charged to distributors for the
right to carry the network, and advertising revenues
generated as a result of viewing of the network by
subscribers. Examples of national basic networks
include CNN, ESPN, and The Discovery Channel, while
networks such as Fox Sports West and MSG Network
are illustrative of the many regional basic networks.
The HBO, Showtime and Starz families of networks
are examples of networks in the premium category.
Distributors charge a retail subscription fee for
these networks and share a portion of this fee with
the networks. In general, these networks are not
advertiser–supported.
The program network industry also includes out–of–market premium sports packages and entities
(such as iN DEMAND) that assemble programming for sale on a video–on–demand or pay–per–view basis.
The program network industry generated nearly $70 billion in net domestic revenues in 2012, with operating
expenses of almost $45 billion. More than three–fourths of the industry’s operating expenses went directly
toward the creation or acquisition of programming.
In addition, the industry was responsible for over $4.4 billion in advertising agency commissions in 2012.
15
TABLE I–5.
PROGRAM NETWORK FUNDS FLOWS, 2012*
(Billions)
Basic Networks
Premium/
VOD/PPV
Total
$59.1
$10.3
$69.4
Programming/Production
$28.3
$5.9
$34.2
All other
$8.6
$1.8
$10.4
Subtotal
$36.9
$7.7
$44.6
Operating Cash Flow/EBITDA
$22.2
$2.6
$24.8
Operating Margin
37.6%
25.2%
35.7%
Operating Revenues**
Operating Expenses:
*
Columns may not add to totals due to rounding.
** Net of agency commissions.
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SECTION II.
ECONOMIC IMPACTS OF THE CABLE INDUSTRY
T
his section summarizes the impacts of the cable industry on the United States economy in terms of jobs,
personal income and total economic activity. Direct, linked and total impacts are analyzed.
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DIRECT IMPACTS
Direct economic impacts include the jobs and personal
income provided by the more than 7,100 cable systems
operating in the United States, as well as the regional
and corporate offices of the MSOs that manage most
of these systems.
EMPLOYMENT
Bortz Media has compiled information on cable
operator employment from several sources, including
public cable company reports and presentations,
analysis of key industry ratios/benchmarks such as
the ratio of subscribers per employee, and responses
of several major MSOs to a survey developed for the
purpose of this study. Based on these data, Bortz
Media estimates that 2012 cable operator employment
approximated 235,100. This reflects the creation of
more than 59,000 net new cable industry jobs over the
past decade.
Growth over recent years results from significant
structural changes in the industry, attributable to the
extensive marketing of digital cable and high–speed
Internet access services, the widespread deployment
of residential telephony and the more recent emphasis
on providing business services. Each of these new
services is labor intensive, requiring incremental
sales, installation, customer service and technical/
maintenance personnel. As a result, the ratio of
subscribers per employee has declined steadily over
the last few years. Stated another way, proportionately
more cable personnel are now required to support
the increasing array of services offered to an
individual subscriber.
19
TABLE II–1.
CABLE INDUSTRY LINKED SUPPLIER EMPLOYMENT
& EMPLOYEE COMPENSATION, 2012
Employment*
Employment* Compensation
Utilities
1,100
$110
Construction
19,800
$1,220
Manufacturing
22,000
$1,410
700
$30
7,000
$250
Information
41,300
$6,200
Finance/Insurance
1,100
$100
Real Estate
6,200
$370
Prof./Mgnt./Admin. Services
46,400
$3,440
500
$50
146,200
$13,190
Economic Sector
Arts/Ent./Rec./Other Services
Total
(Millions)*
*Column may not add to total due to rounding
DIRECT EMPLOYEE COMPENSATION
Direct cable operator employee compensation
(including payroll tax payments, as well as capitalized
in–house labor) is estimated to total $19.9 billion for
2012. Excluding capitalized labor costs, employee
compensation accounts for approximately 29 percent
of cable industry operating expenses.
LINKED ECONOMIC ACTIVITY
As noted in Section I, linked economic activity
encompasses the jobs, income and related economic
effects of firms supplying goods and services to cable
system operators. Based on the dollar flows from
the cable industry to these firms (see Section I), the
cable–related activities of cable industry suppliers are
estimated to have accounted for over 146,000 jobs
and $13.2 billion in employee compensation during
2012. [Summarized on Table II–1]
Professional, management, and administrative
services firms provide over 46,000 cable–related
jobs. The information sector (which includes program
networks) has over 41,000 cable–related employees.
This high paying sector is the largest linked supplier
category in terms of employee compensation,
with approximately $6.2 billion in cable–related
compensation.
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COMBINED DIRECT
AND LINKED IMPACTS
Combining direct and linked employment
provides a particularly useful depiction of
“the cable industry” (i.e., the employment
and income generated by cable operators
and their immediate suppliers of goods
and services). In 2012, total employment
on this basis approximated 381,000,
while compensation of those employees
amounted to more than $33 billion.
TABLE II–2.
CABLE INDUSTRY COMBINED DIRECT & LINKED IMPACTS, 2012
Direct Plus Linked Impacts
Employment
381,000
Employment Compensation (Millions)
$33,090
TOTAL ECONOMIC IMPACTS
Total economic activity associated with the
cable industry extends far beyond the direct
and linked impacts summarized above. As
noted in Section I, additional economic effects
are created by:
• Economic activity generated by the purchase
of goods and services by firms dependent
on the cable industry (intermediate effects);
• Economic activity stimulated by the
purchase of goods and services by
individuals employed as a result of the
cable industry (induced effects).
The total impacts attributable to the industry
can be measured in the form of job creation
and resulting personal income, as well as in the
form of total output. As described further in
Appendix A, estimation of these total impacts
derives from the application of economic
impact multipliers – in this case, multipliers
developed by the Bureau of Economic Analysis
of the U.S. Department of Commerce.
21
EMPLOYMENT AND INCOME
Total employment associated with the cable industry during 2012 (including direct, linked and indirect effects),
is estimated at nearly two million. Total 2012 earnings attributable to the industry were more than $89 billion.
TABLE II–3.
CABLE INDUSTRY TOTAL ECONOMIC IMPACTS, 2012*
Employment*
Employment Compensation*
Agriculture/Mining
7,000
$240
Utilities
14,500
$750
Construction
104,400
$4,350
Manufacturing
178,700
$8.090
15,700
$650
116,200
$4,390
Information
819,700
$42,220
Finance/Insurance
54,700
$2,170
Real Estate
43,400
$1,130
Prof./Mgmt./Admin. Services
210,400
$8,490
All Other Services
103,200
$3,660
Public Administration
290,500
$13,030
1,958,500
$89,160
Economic Sector
Total
(Millions)**
*
As noted above and in Appendix A total impacts combine direct, linked and indirect impacts. Estimates of indirect (or ”re–sending effects”)
are derived by applying U.S Department of commerce multipliers for each industry sector to Bortz Media estimates of direct impacts.
**
Column may not add up to total due to rounding.
The information sector (which includes the cable industry’s direct employment and compensation impacts) is
by far the largest sector in terms of cable–induced employment. The greater relative importance of the trade
sector in comparison with the distribution of linked supplier impacts is a function of personal consumption
patterns, which account for a significant portion of indirect economic impacts.
Finally, more than 290,000 government jobs are induced by the cable industry. Most of these positions are
found at the state and local level.
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OUTPUT
Economic output impacts (as estimated in this report) reflect the total value of all cable–related transactions
as they occur throughout the economy. Specifically, gross output measures the sum of the revenue received
by firms at each step in the distribution process.11 The gross 2012 output associated with the cable industry is
estimated at $291 billion. [See Table II–4.]
IMPACTS BY STATE AND CONGRESSIONAL DISTRICT
Bortz Media also estimated cable employment and economic impacts by state and congressional district.
Estimates of employment and impact for each state and district are set forth in Appendix B.
Employment estimates are derived from zip code level employment data provided by individual cable
companies. Determining impacts in each state and district is more complex, and cannot be estimated with
precision without evaluating whether dollars spent in a particular location go to suppliers located in the same
location. For purposes of this analysis, Bortz Media estimates state and District level impacts assuming all
dollars spent by the local cable system remain within the state or District. This method allocates the full level of
total industry impacts – but does not account for the fact that some states and Districts receive substantial net
inflows of cable dollars while others experience substantial net outflows. Impacts are therefore understated in
some states and Districts and overstated in others.
Despite these limitations, our analysis confirms that the cable industry’s localized structure results
in significant employment and economic impacts in each and every state and congressional district.
A few key findings include:
• Direct cable employment. Bortz Media’s analysis indicates that at least 300 direct cable industry employees
reside in every congressional district. Further, there are 37 Districts with more than 1,000 cable employees
and some with more than 2,000.
• Employment impacts. Using the total impact approach, the industry is responsible for at least 2,500 jobs in
each district, and upwards of 4,000 jobs in more than 150 districts.
23
CABLE INDUSTRY GROWTH: 2002–2012
As indicated in Sections I and IV, the cable industry has experienced substantial growth over the last decade.
The economic implications of this growth can be seen by comparing the industry’s economic impacts in 2012 to
those estimated in Bortz Media’s 2002 impact analysis.12 This comparison illustrates that the direct and linked
employment attributable to the cable industry has grown from 307,000 employees in 2002 to 381,000 in 2012.
Similarly, total employment impacts (including indirect effects) have increased from 1.1 million employees
(2002) to nearly 2.0 million for 2012. Similar growth patterns are evident in other major measures of the
industry’s impact:
TABLE II–4.
CABLE INDUSTRY GROWTH INDICATORS, 2002–2012
Percent
Change:
2002–2012
2002
2007
2010
2012
Absolute
Growth
$48.2
$78.6
$94.4
$104.5
$56.3
117%
176,000
229,000
233,000
235,100
59,100
34%
$8.9
$17.3
$17.3
$19.9
$11.0
124%
307,000
365,300
369,300
381,300
62,100
20%
$16.2
$23.4
$28.4
$33.1
$16.9
104%
1,134,400
1,501,200
824,100
73%
Employee Comp. (Billions)
$42.3
$69.9
$76.7
$89.2
$46.9
111%
Gross Output (Billions)
$173.4
$226.7
$251.2
$291.4
$118.0
68%
Economic Indicator
Cable Operator Direct Impacts:
Revenues (Billions)
Employment
Direct plus Linked Supplier Impacts:
Employment
Total Economic Impacts:
Employment
1,771,900 1,958,500
The cable industry’s direct employment gain of 59,000 net new jobs from 2002 to 2012 represented over
1.3 percent of all net U.S. jobs added during that period – an enormous contribution for any single industry.
Moreover, the 6,100 jobs added since 2007 have occurred during a period in which the overall economy has lost
more than three million jobs. Clearly, the cable industry’s sustained growth over the last several years has been
an essential stabilizing force during a difficult period for the American economy.
11
By way of example, assume that the raw materials (or components) used in a digital cable set–top box are sold to a manufacturer for a total of
$25, the manufacturing process for the unit contributes an additional $75 in “value–added” (resulting in a wholesale price of $100), and the final
“retail” price to the cable operator is $200. In this case, gross output is the sum of all three “prices” charged for the product at the three steps in the
distribution chain, or $325.
12
Changes in NAICS industry classifications necessitated certain methodical changes for the 2007 and 2010 studies as compared with the 2002 study.
As such, comparisons of specific job classifications between the two studies should be viewed with caution. Even so, Bortz Media believes broad
trend comparisons such as those described here are representative of the growth in the industry’s overall economic impact.
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SECTION III.
ECONOMIC IMPACTS OF THE
PROGRAM NETWORK INDUSTRY
T
he program networks that represent the key suppliers to the cable industry comprise a substantial industry
in their own right – and their economic impact is only partially reflected in the total impacts calculated in
Section II. This section details the direct and total impacts of the subscription program network industry on the
United States economy in terms of jobs, personal income and total economic activity.
26
DIRECT IMPACTS
Direct economic impacts include the jobs and personal income provided by the approximately 800 basic and
premium program networks operating in the United States, as well as the regional networks serving particular
segments of the country.
EMPLOYMENT
Bortz Media has compiled information on program network employment primarily from responses to a survey
of major program network groups developed for the purpose of this study. In addition, several other sources
have been reviewed including public company reports and presentations, analysis of key industry ratios/
benchmarks such as the ratio of revenues per employee, and Bortz Media’s own experience in developing
staffing plans for start–up networks. Based on these data, Bortz Media estimates that 2012 program network
employment approximated 54,000. This represents an increase of about 3,300 employees since 2010 and
about 7,500 net new jobs since 2007.
Bortz Media’s 2002 analysis did not directly address program network employment. However, based on
information supplied by selected network groups in 2002 and in response to the survey conducted for this
analysis, it is estimated that program network employment has increased by roughly 60 percent over the past
decade – resulting in the creation of roughly 20,000 new jobs.
DIRECT EMPLOYEE COMPENSATION
Program network industry employees are highly compensated, with compensation in 2012 estimated
to average approximately $150,000 per employee. Direct program network employee compensation is
therefore estimated to total $8.1 billion for 2012. Employee compensation accounts for almost 17 percent of
program network operating expenses.13
13
27
For purposes of this analysis, commissions paid to advertising agencies and rep firms have been treated as program network operating expenses.
If these expenses are excluded, employee compensation accounts for about 18 percent of network operating costs.
LINKED ECONOMIC ACTIVITY
As noted in Section I, linked economic activity encompasses the jobs, income and related economic effects of
firms supplying goods and services to program networks. An in–depth examination of program network linked
supplier activity was beyond the scope of this assessment. However, because program network expenditures
are heavily concentrated on the suppliers of the programming content that the networks provide, it is useful
to consider the relationship between the program networks and two key supplier segments – the studio/
production industry and the sports industry.
THE STUDIO/PRODUCTION SEGMENT
For the studio/production industry, the importance of basic and premium networks as distribution outlets
continues to increase. Whereas subscription TV was originally a secondary distributor (i.e., programming
premiered on an alternative distribution vehicle), it has increasingly assumed a primary role. Major, award–
winning original series such as Homeland, Mad Men, The Walking Dead and The Closer have become a core
part of the basic and premium network landscape, as have acclaimed
original movies and mini–series such as Hatfields & McCoys, Steel
Magnolias and Game Change. Cable networks are also home to
popular reality series including Pawn Stars, Jersey Shore, Duck
Dynasty and Gold Rush.
Within the program syndication marketplace, basic networks are
the primary outlets for off–network hour series such as NCIS,
Southland and The Mentalist, as well as increasingly a primary outlet
for half–hour series such as The Big Bang Theory, Family Guy and
American Dad – oftentimes bypassing the traditional run on local
over–the–air stations.
Finally, premium as well as basic networks continue to invest heavily
in the acquisition of feature films.
SPORTS
Basic and premium program networks continue to offer an increasing
number of sports events, and, in general, have greatly increased the
overall number of sporting events televised. The growth of sports on
subscription TV networks is attributable to a combination of factors,
including: investment in high–profile sports content by national
networks such as ESPN and ESPN2, TNT, TBS, NBC Sports Network,
FX and HBO; the continued growth of regional sports networks; and
the ongoing evolution and development of networks dedicated to the
delivery of college athletics and/or specific types of sports. One or
more regional sports networks are offered to the vast majority of all
cable subscribers, while widely–distributed national sports networks
(in addition to those mentioned above) include The Golf Channel,
Speed, NBA TV, The Tennis Channel, CBS Sports Network, ESPNU, The
Big Ten Network, The MLB Network and The NFL Network.
The resulting income flowing to professional sports franchises from
increased program network carriage at both the national and local
levels has provided owners with an important incremental revenue
stream. Similar benefits have been realized by collegiate institutions
and other sports entities. As such, program networks are key
contributors to the continued financial health of the sports industry.
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TABLE III–1.
PROGRAM NETWORK PRODUCTION & ACQUISITION EXPENDITURES, 2012
Billions*
Basic Networks
$28.3
Premium Networks
$3.2
Pay–Pay–Per View/VOD Services
$2.7
$34.2
TOTAL
* Columns may not add to totals due to rounding.
MONETARY FLOWS
Program network spending on the production and
acquisition of content is estimated to have totaled more
than $34 billion during 2012, including expenditures
by basic networks (national and regional), premium
services and for video–on–demand and pay–per–view
delivery. Bortz Media estimates the distribution of
program network expenditures in Table III-1.
A portion of these programming dollars are spent
internally by the program networks. For example,
the production costs associated with the news
programming of CNN, CNBC, MSNBC, Fox News
Channel and others are included in these estimates.
However, Bortz Media estimates that over $20 billion
of this total flows to the motion picture studios and
other members of the production community. In
addition, an estimated $7.6 billion is paid to holders
of sports rights.
29
EMPLOYMENT AND INCOME
The dollar flows described above stimulate employment and personal income in the program production/
distribution and sports sectors of the economy. Based on U.S. Department of Commerce data for these sectors,
the program network industry is responsible for almost 64,000 jobs in the motion picture and video industry
sector as well as 16,000 sports industry employees. These program network–related employees receive
compensation totaling $4.0 billion (production) and $4.9 billion (sports). [see Table III-2]
Supported by rapidly growing revenues received from program networks, program network
attributable employment in these two sectors is estimated to have increased by on the order of 25,000 jobs in
the last five years.
TABLE III–2.
PROGRAM NETWORK INDUSTRY PRODUCTION AND SPORTS LINKS, 2012
2012 Sector Links
Motion Picture &
Sports Teams & Clubs
Video Industries
Revenues (Millions)
$7,580
$20,340
Employment
16,000
63,800
Employee Compensations (Millions)
$4,860
$3,970
Note: Total impacts estimated for the cable industry. As such, the total impacts for the two industries as presented in this report are not additive.
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TABLE III–3.
PROGRAM NETWORK TOTAL ECONOMIC IMPACTS, 2007–2012
2007
2010
2012
Change:
2007–2012
767,000
854,000
980,000
213,000
Earnings (Billions)
$29.8
$31.7
$35.8
$6.0
Gross Output (Billions)
$100.7
$108.1
$123.4
$22.7
Employment
TOTAL ECONOMIC IMPACT
Total economic activity associated with the program network industry extends far beyond the direct and linked
impacts summarized above.14 As noted in Section I, additional economic effects are created by:
• Economic activity generated by the purchase of goods and services by firms dependent on the program
network industry (intermediate effects).
• Economic activity stimulated by the purchase of goods and services by individuals employed as a result of
the program network industry (induced effects).
The total impacts attributable to the industry can be measured in the form of job creation and resulting personal
income, as well as in the form of total output. As described further in Appendix A, estimation of these total
impacts derives from the application of economic impact multipliers – in this case, multipliers developed by the
Bureau of Economic Analysis of the U.S. Department of Commerce.
Total employment associated with the program network industry during 2012 (including direct, linked and
indirect effects), is estimated to be 980,000 or an increase of about 213,000 jobs since 2007. Total 2012 earnings
attributable to the industry were almost $36 billion.
As discussed previously, economic output impacts (as estimated in this report) reflect the total value of all
program network–related transactions as they occur throughout the economy (i.e., the sum of the revenue
received by firms at each step in the distribution process). The gross 2012 output associated with the program
network industry is estimated at over $123 billion.
14
31
The total impacts reported here accurately reflect the economic impacts of the program network industry. However, since the program network
industry is a supplier to the cable industry, a portion of the program network industry’s total impacts are also subsumed in the total impacts
estimated for the cable industry. As such, the total impacts for the two industries as presented in this report are not additive.
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SECTION IV.
OTHER CABLE AND PROGRAM NETWORK
INDUSTRY PERSPECTIVES
T
he first three sections of this report detail the impact of the cable and program network industries on the
United States economy, focusing on the creation of jobs and income and contributions to the nation’s
economic growth. This section highlights the many other impacts of the two industries – including the
cable industry’s critical role in U.S. infrastructure investment, in creating a competitive telecommunications
marketplace and in stimulating the emergence of an increasingly “broadband society” in the United States, and
the profound impact of both industries on American television viewing habits and the development of new and
innovative television programming. Finally, this section reviews the substantial monetary and non–monetary
contributions of both segments to the communities they serve.
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THE CABLE INDUSTRY: CAPITAL
INVESTMENT FOSTERING COMPETITION
Cable operators engage in a capital–intensive business
that requires substantial investment to maintain
and upgrade the extensive network infrastructure
used to provide service. Following the passage of
the Telecommunications Act of 1996, the industry
undertook a massive infrastructure upgrade in the
late 1990s and early 2000s (investing about $74 billion
from 1996 to 2002 while also incurring a multi–billion
dollar deficit in free cash flow) that transformed
the competitive landscape in telecommunications
and continues to benefit American consumers in
innumerable ways.15
The majority of the cable industry’s capital investment
is made at the local level, in communities across the
United States. And about one–quarter of the industry’s
total investment represents capitalized labor, which
equates to local jobs – the majority of which are
local contractors.
In fact, top cable companies have been recognized as
“Investment Heroes” in a recent report by economists
at the Progressive Policy Institute measuring the
volume of domestic capital expenditures by U.S.
companies.16 Making the point that there is a
reciprocal relationship between investing within
the United States and business success, the authors
included Comcast (top 10) and Time Warner (top 20)
on a list of the top 25 U.S. companies that made the
greatest investments domestically
in buildings, equipment and
FIGURE IV–1.
infrastructure – a commitment
CABLE INDUSTRY CAPITAL EXPENDITURES, 1996–2012 many companies have slowed
or stopped during the recent
(Billions)
lackluster economic recovery.
Moreover,
cable
companies
were among the organizations
$73.9
$68.7
highlighted in the report as making
$58.3
investments that provide “spillover
benefits.” That is, by using the
infrastructure developed by cable
and other telecom companies,
other companies such as those
that develop software applications
for smart devices along with
1996–2002
2003–2007
2008–2012
companies that provide Internet
Source: Bortz Media compilation based on company reports and NCTA data.
services – like Facebook and
Twitter – also benefit in that they
are able to innovate and get those
Subsequently, the industry’s capital investment innovations to consumers quickly.
commitment has continued, such that total
expenditures from 1996 forward exceed $200 billion. While substantial, neither the dollar amounts nor
Notably, the industry has spent more than $10 billion the recognition described above fully capture the
annually for each of the past 14 years, shifting its impact that the cable industry has had in driving the
capital and operating focus toward competitive adoption of broadband Internet access in this country,
service implementation, the introduction of innovative in opening the nation’s telephone market to true
service applications, and equipping homes with the competition at the residential level, and in fostering
technological tools and capabilities needed to make innovation in electronic entertainment.
the most of their entertainment, information and The services made possible by the cable industry’s
communications options.
innovation and investment are reviewed in more
detail below.
15
35
Bortz Media estimates based on NCTA data, Kagan World Media/
SNL Kagan, Broadband Cable Financial Databook 2000, 2002 and
2010, and company reports.
16
Diana G. Carew and Michael Mandel, Progressive Policy Institute,
Policy Brief, “Investment Heroes: Who’s Betting on America’s
Future?”, July 2012.
ADVANCED VIDEO SERVICES
As of 2012, more than 80 percent of all cable homes subscribed to digital cable service, up from 60 percent
in 2007 and about 30 percent in 2002.17 This represents nearly 47 million digital cable customers. In addition
to rapidly adopting cable’s digital service tier, customers are also taking advantage of the advanced services
available to digital subscribers as well as the increasing availability of programming services on other
media platforms:
VIDEO–ON–DEMAND (VOD)
HIGH–DEFINITION TELEVISION (HDTV)
Nearly all digital cable customers have access to
extensive libraries of VOD programming offered
by cable companies – and by all indications customers
are taking full advantage. Cable customers make
significant use of VOD, with about 80 percent
of offerings free of charge. For example, each
Comcast digital subscriber on average orders about
20 VOD playbacks per month, and cable VOD–enabled
homes nationwide watch eight hours of VOD content
a month.18
More than 30 million cable homes are projected to
have HD–enabled set–top boxes as of the end of 2012,
which is more than double the total from 2007.
DIGITAL VIDEO RECORDING (DVR)
As of the end of 2012, it is estimated that close to
24 million cable customers (or 42 percent of cable
homes) had DVR service.19 This represents an increase
of close to five million cable DVR customers from
2010 and is more than double the number of cable
DVR customers at the end of 2007. DVR capability
is significantly altering the way viewers watch
television – enabling programs to be recorded and
viewed at times more convenient to the customer,
while also allowing programs to be paused and
replayed when viewed “live.”
17
Bortz Media estimates based on cable company reports, SNL Kagan
data, and NCTA estimates.
TV EVERYWHERE
In their ongoing efforts to extend and reinforce the
value of their service to customers, cable operators
have established agreements with programmers
to make content available on multiple platforms. By
allowing access to TV programming online, these
services let people watch on–demand programs on
personal computers, laptops and mobile devices such
as tablets and smartphones. In some cases packages
range from nearly one hundred to several hundred
live TV channels available for streaming by cable
operators such as Cox, Time Warner and Cablevision.
18
www.screensplaymag.com, “VOD Advertising Goes Big Multiscreen
in Train,” June 7, 2012.
19
Leichtman Research Group, Inc. “Research Notes,” 4Q 2012.
WWW.NCTA.COM
36
HIGH-SPEED INTERNET SERVICE
The cable industry’s bold (and unquestionably risky) infrastructure commitment enabled it to “take the
early lead” in the broadband services market and to attract over 50 million high–speed Internet customers
as of year–end 2012.20 Equally important, it forced a competitive response from initially reluctant regional
telephone incumbents, which ultimately resulted in most U.S. households now having access to broadband
services from at least two experienced and reliable service providers. Moreover, by continually pressing its
technological advantage and increasing broadband Internet speeds offered, cable forced a further response
from the telephone industry in the form of increased DSL capabilities and substantial investments in
fiber optic infrastructure.
By investing earlier than their principal competitors, cable operators initially brought broadband service to
prospective customers sooner than would otherwise have been the case – giving consumers the opportunity to
realize the benefits of the service and “proving” that a market existed for faster speeds. As penetration grew, the
early success of cable operators
forced a competitive response
FIGURE IV–2.
from ILECs – which faced a
CABLE HIGH SPEED INTERNET CUSTOMERS, 2002–2012
major lost opportunity if cable’s
(Millions)
early advantage persisted over
time. Through the combination
of providing access directly
50.3
as well as stimulating the
development of a competitive
alternative, it is reasonable to
35.7
assume that cable’s early entry
led to faster overall evolution of
the broadband market.
By making broadband widely
11.6
available (93 percent of U.S.
households today have access
2002
2007
2012*
to cable broadband)21, the
cable industry has maintained
its leadership in the delivery of
high–speed Internet service and
more than quadrupled its customer base over the past 10 years: For all but a small percentage of U.S. homes,
cable broadband provides the fastest overall average speed to consumers.22 Standard cable broadband speeds
range from 10 Mbps to 20 Mbps, and more than 105 million U.S. homes have access to service tiers that offer
speeds of 50 Mbps or faster.23 Moreover, Comcast has launched a new ultrafast 305 Mbps broadband service in
several Northeastern markets.
In addition, FCC broadband industry research testing consumer broadband performance underscores the
overall health and growth of the broadband marketplace. Consistent with past FCC studies, cable providers
continue to deliver broadband speeds to consumers that meet or exceed their advertised performance (overall
cable industry average of 99 percent of advertised download speed during peak periods, 7p.m. to 11 p.m.,
compared with 85 percent for DSL services).24
The FCC report also found that consumers continue to move to faster–speed service tiers. Between April
2012 and September 2012, 46 percent of customers with service of 1 Mbps or less, 21 percent of those with
1–3 Mbps, 11 percent of those with 3–7 Mbps and 27 percent of those with 7–10 Mbps packages upgraded
to faster service.25
20
Bortz Media estimate based on company data,
SNL Kagan data and NCTA estimates.
23
NCTA data.
21
NCTA data.
24
FCC, “2013 Measuring Broadband America – February Report.”
22
PC Mag.com, “The Fastest ISPs in the U.S. 2012,” Sept. 28, 2012.
25
Ibid.
37
THE “BROADBAND BONUS”
Numerous analyses have concluded that broadband is a crucial component of economic development and
recovery, and that the overall economy has benefited from investments in broadband infrastructure. The concept
of a “broadband bonus” was developed in an attempt to quantify how much new economic value has resulted
from the global transition to broadband Internet access. A 2012 report, “Measuring the Broadband Bonus in
Thirty OECD Countries,”26 provides an estimate of the net economic value created by broadband Internet (over
and above what would have been expected had dial–up Internet access continued to be the only means to
access the Internet). For 2010, the estimated U.S. “broadband bonus” measured by the authors amounted to
$125 billion, or almost three times the level of direct broadband revenues; furthermore, the measured “bonus”
nearly tripled in just three years (i.e., from 2007 to 2010).27 At $125 billion in 2010, the broadband bonus was
estimated to add almost one percent to U.S. GDP (and certainly seems likely to exceed that level today based
on its recent growth pattern). As such, there is quantifiable evidence that the cable industry’s leadership role
in introducing broadband and continually improving its service speeds has had significant economic growth
benefits on a national level.
DIGITAL VOICE SERVICE
In the telephone market, the FCC and Congress recognized the importance of creating a competitive market
with the passage of the Telecommunications Act. However, despite the early efforts of CLECs and other would–
be competitors, the regional telephone companies still controlled over 93 percent of residential primary access
lines as recently as the end of 2001. It has only been since the cable industry’s aggressive commitment to
telephony (starting in 2001) that true residential competition has emerged. The cable industry has emerged as
the primary source of competition to the incumbent telephone companies in the local telephone market, and
the number of digital phone customers served by the industry has grown from just over 2.5 million at the end of
2002 to more than 26 million at year–end 2012.28 The largest cable television providers now also rank among the
nation’s largest telephone companies. With nearly 10 million telephone customers, Comcast is now the country’s
third largest local residential
telephone company – trailing only
FIGURE IV–3.
AT&T and Verizon. With nearly five
CABLE TELEPHONE SERVICE CUSTOMERS, 2002–2012
million telephone customers, Time
Warner Cable ranks fifth among all
(Millions)
residential telephone providers.
In fact, cable television providers
26.4
now make up five of the top ten
residential phone companies in
the country – Comcast (3rd), Time
Warner (5th), Cox (6th), Cablevision
(8th) and Charter (9th).29
14.8
2.5
2002
2007
2012
26
Authored by Shane Greenstein (Northwestern University) and Ryan
McDevitt (University of Rochester), April 19, 2012.
27
Greenstein, S. and R. McDevitt (2012), “Measuring the Broadband
Bonus in Thirty OECD Countries”, OECD Digital Economy Papers,
No. 197, OECD Publishing.
28
Bortz Media estimates based on cable company reports, SNL Kagan
data, and NCTA estimates.
29
Leichtman Research Group, Inc., “Research Notes,” 4Q 2012.
WWW.NCTA.COM
38
CABLE, PROGRAM NETWORKS,
AND VIEWING
To be sure, cable’s ongoing infrastructure investment
and its implementation of digital technology have
combined to broaden the industry’s role in its
customers’ lives and to accelerate the pace at which
appealing new services are deployed. Even so, recent
trends are merely a continuation of a long tradition
of providing the improvements and choices that
consumers want.
The U.S. cable industry was launched in the early
1950’s to bring broadcast television (network
affiliates, independents and public stations) to those
households that could not otherwise receive the
full complement of signals off–air. This remained
the driving force behind the industry well into the
mid–1970’s and accounted for the first 10 to 12 million
industry subscribers.
As cable’s early focus expanded to include urban
settings during the late 1970’s and early 1980’s, the
characteristics of cable’s service offering changed
as well. From the 1980’s through the early 2000’s,
cable’s focus shifted to the sale of programming
variety or choice – programming in addition to, and
predominantly different from, broadcast television.
Finally, over the last decade, growth in competitive
alternatives has accelerated the trend toward ever
improving options for the consumer. (As noted
previously, customer choice has also evolved beyond
just video programming to include high–speed
Internet and telephone service). Today, more than
ever, the cable “sell” is contingent on providing a wide
range of innovative and differentiated programming
39
and services that consumers value and are willing
to pay for, and on giving customers the flexibility to
purchase all or only a fraction of those services.
The commitment and success of the cable and
programming network industries over the years in
creating and providing choice to its customers can be
measured in a number of different ways.
CHOICE AND FLEXIBILITY
The ongoing infrastructure and technological
evolution of the cable industry has provided, first and
foremost, the expanded bandwidth needed to offer
more program choices (along with other services) to
subscribers. Combining expanded bandwidth with
digital compression, cable operators now offer nearly
all customers the option to select from packages that
include hundreds of programming choices. While this
increased capacity is an essential part of the enhanced
value that cable offers, the industry well recognizes
that not all of its customers have an interest in
hundreds of programming choices. In fact, across the
country, some customers opt to purchase as few as 20
to 50 channels of video programming (i.e., “broadcast
basic” subscribers), while many others pay to receive
300 or more channels. Serving this range of consumer
interests is the essence of choice – as measured by
the combination of quantity and flexibility.
As described earlier in this section, with the
emergence of both television–based and Internet–
based on–demand offerings, the number of
simultaneous programming choices available is now
truly extraordinary – numbering as many as 25,000 on
television and on the order of 150,000 online.
COMBINING VARIETY WITH CONTROL
The sheer number of program networks is indicative of the diversity evident in the subscription TV program
offering. Networks focused on specific niches, including those providing ethnically–targeted programming,
children’s programming, and other areas such as news, food, health, movies, music, sports, etc., are continually
growing in number. As just one example, many cable systems now provide multicultural packages offering
50 or more channels specifically designed for particular ethnic groups. Primary examples are Latino tiers
that include traditional Spanish–language networks as well as versions of popular program networks
specifically designed to reflect the viewing interests of Latino subscribers.
In addition, recognizing that some of the diverse array of programming offered may not be appropriate for all
viewers, cable programmers display ratings icons at the beginning of programs and after commercial breaks,
and cable operators provide parental controls that enable parents to manage how television is viewed in
the home. Together operators and programmers have contributed more than $500 million in public service
announcements to ensure that consumers are aware of TV ratings and parental control capabilities.30 The
industry has also undertaken similar efforts – including PointSmartClickSafe (see Community Involvement
Section) – to promote Internet safety for children.
30
NCTA
WWW.NCTA.COM
40
VIEWING
Viewing of subscription TV programming provides an even better indicator of the importance and value of
the programming choices the cable industry and program networks now provide. As shown in Figure IV–3,
total viewing of basic networks measured against all TV households has increased more than two and half
times since the 1995–96 television season. During the 2011–12 television season, the total day viewing share of
ad–supported basic networks surpassed 52 percent, exceeding that of all other television programming
combined (including all broadcast sources, as well as premium networks). In prime time, basic networks
delivered an average of 42.7 million homes, up from 36.8 million in the 2005–06 season. The average cable TV
home now devotes more than 39 hours weekly to watching basic networks.31
The continued growth in the audience appeal of basic networks is also reflected in several recent viewing
achievements by individual networks and programs:32
• Most–viewed non–sports entertainment telecast in basic cable history. The three nights of the History
Channel’s miniseries Hatfields & McCoys were the top–rated non–sports entertainment telecasts ever for
basic cable. The finale, with 14.3 million viewers, was the number one non–sports and non–news program
ever on basic cable.
• Most–viewed series programming. AMC’s The Walking Dead averages 11.8 million viewers in 2012, while
seven other basic network series topped six million average viewers: The Closer (TNT), Rizzoli & Isles (TNT),
Major Crimes (TNT), Pawn Stars (History), Perception (TNT) and Dallas (TNT). A broad range of additional
basic networks contributed to 20 series in total achieving average viewing that exceeded five million viewers,
including: USA (Suits), MTV (Jersey Shore), A&E (Storage Wars), and Discovery Channel (Gold Rush).
FIGURE IV–4.
BASIC NETWORK TOTAL DAY HOUSEHOLD DELIVERY
(Millions)
19.3
16.8
9.5
95/96
11.3
97/98
21.8
23.0
23.3
07/08
09/10
24.3
13.4
99/00
01/02
03/04
05/06
11/12
Source: Nielsen data as reported by Cabletelevision Advertising Bureau, TV Facts 2008 and 2013
31
Bortz Media compilation based on Cabletelevision Advertising Bureau, TV Facts, 2013.
32
Bortz Media compilation of trade press reports and Nielsen data.
41
PROGRAM QUALITY
As summarized in Section III, the importance of this viewing shift, from an economic perspective, lies in the
resultant increase in program network advertising revenues. By re–investing these funds (as well as the rapidly
growing license fees obtained from cable operators), program networks are continually increasing the resources
devoted to purchasing and/or producing better programming. As Figure IV–4 illustrates, collectively, the annual
spending on programming by basic networks grew more than sixfold from $1.4 billion in 1990 to nearly $9.2
billion for 2002, and has since more than tripled to over $28 billion in 2012:
FIGURE IV–5.
TOTAL BASIC NETWORK PROGRAM INVESTMENT, 1990–2012
(Billions)
$24.4
$28.3
$18.8
$1.4
1990
$4.7
1997
$9.2
2002
2007
2010
2012
Source: Bortz Media estimates based on SNL Kagan, Econ. of Basic Cable Networks, various years.
WWW.NCTA.COM
42
It should be noted that growth in programming expenditures is not merely a reflection of the addition of literally
hundreds of new networks but also a reflection of increased spending on an individual network basis. As Figure
IV–5 illustrates, average program spending for the top 10 basic networks has increased from $267 million in
1997 to nearly $1.1 billion in 2012. [see Figure IV-6]
Apart from the industry’s investment, the quality of basic and premium network programming is reflected in the
number of major industry nominations and awards garnered by these networks. Basic or premium networks
won 17 of the top 26 awards at the most recent Primetime Emmy Awards.33 These awards included six of the
seven available acting, writing and directing awards for drama, including Outstanding Drama Series (Showtime’s
Homeland). In fact, five of the six nominees for Outstanding Drama Series were cable network programs, and
one of the nominees, AMC’s Mad Men, lead all programs with the most overall nominations (17), tied with the
FX miniseries American Horror Story.34 Cable’s other Primetime Emmy Award winners included Outstanding
Miniseries (HBO’s Game Change) and Outstanding Variety Series (Comedy Central’s The Daily Show with John
Stewart). This recognition from the Academy of Television Arts and Sciences further underscores the high quality
of subscription television programming and the resulting benefits to the subscription TV viewing audience.
FIGURE IV–6.
AVERAGE PROGRAM INVESTMENT FOR TOP 10
BASIC NETWORKS, 1997–2012
(Millions)
$1,055
$896
$732
$440
$267
1997
2002
2007
2010
2012
Source:Bortz Media compilation based on SNL Kagan Economics of Basic Cable Networks
(various years) and SNL Kagan TV Network Analytics data. Based on investment for
the top 10 networks that have been in operation since 1997.
33
TVbytheNumbers, “Full List of 2012 Primetime
Emmy Award Winners,” September 23, 2012..
34
The New York Times, “Major Networks Shut Out of Best Drama Category in Emmy Nominations,” July 19, 2012.
43
CABLE AND PROGRAM NETWORK INDUSTRY CONTRIBUTIONS TO COMMUNITIES
The cable industry contributes substantially to charities, non–profit organizations and state/municipal coffers
on a nationwide basis. These funds come in the form of franchise fees and sales/use taxes, programming
services and on–air public service messages, equipment donations and direct cash contributions. With 7,100
individual cable systems operating in nearly every community in the country, the effect of these payments and
contributions is felt directly by the communities served.
In addition, through its own initiatives, including the use of valuable airtime, the program network industry also
makes substantial contributions.
FINANCIAL CONTRIBUTIONS
Franchise fees paid by cable operators in 2012 are estimated to have totaled $2.2 billion35, reflecting funds
paid directly to local municipalities across the country. In addition, sales and use taxes associated with cable
subscriptions amounted to over $2.8 billion in revenues to state and local government entities.36
Moreover, based on MSO and program network survey responses and prior research by The Association of
Cable Communicators, the cable industry (including both cable operators and program networks) contributed
more than $1.0 billion in public service announcements, cash and “in–kind” contributions to local and national
philanthropic, charitable and public service projects.37
35
Bortz Media estimate based on MSO survey responses.
36
Bortz Media estimate based on MSO survey responses.
37
Bortz Media estimate based on MSO and program network
survey responses, as well as prior research by the Association of Cable Communicators.
WWW.NCTA.COM
44
COMMUNITY INVOLVEMENT
The cable industry strives to ensure that cable systems are positive, contributing members of the communities
in which they operate. This commitment frequently takes the shape of partnerships among programming
networks and local cable systems to bring public affairs initiatives to local communities. Cable industry
companies also leverage industry–wide initiatives, both new and longstanding, for the benefit and meet the
needs of local communities. A few examples of industry–wide cable public affairs initiatives include:
CABLE IN THE CLASSROOM (CIC)
C–SPAN
As the national education foundation of the cable
industry, CIC works in partnership with, and on behalf
of, cable companies and programming networks to
advocate digital citizenship and the visionary, sensible
and effective use of media in homes, schools, and
local communities. Since 1989 and working through
CIC, local cable companies have been providing
complimentary connections to schools and access
to
commercial–free,
copyright–cleared
quality
educational programming from cable programming
services. Through CIC’s efforts, educators are able
to tap the best of cable’s video and web content for
educational use.
Since 1979 and continuing today, cable companies
fund the operation of the Cable–Satellite Public
Affairs Network (C–SPAN) as a public service providing
public access to the U.S. political process, and local
cable systems throughout the country offer channel
space for distribution of C–SPAN programming. Cable
support for these operations exceeds $50 million
annually. In a similar vein, cable also supports and/
or makes channel space available for the distribution
of numerous state public affairs networks (“state–
SPANs”) including The Pennsylvania Cable Network,
The California Channel, Michigan Government TV, and
others. Also, municipal–access channels on systems
throughout the country provide viewer access
to city council, school board meetings and other
government activities.
HELPING PARENTS MANAGE MEDIA
AND KEEP THEIR CHILDREN SAFE ONLINE
The cable industry’s longstanding commitment to
helping parents guide their children’s use of media is
realized through its Cable Puts You in Control initiative.
The approach centers around three key concepts:
Control, including parental controls; Education,
including digital and media literacy; and Choice,
which recognizes the options available to parents and
children, and the decisions they must make. The two
main components of Cable Puts You in Control are
Control Your TV, created to educate cable consumers
about the easy–to–use parental control tools that
cable provides along with information about the TV
ratings system, the V–chip, and family–friendly viewing
options; and PointSmart.ClickSafe., a comprehensive
initiative to educate consumers and parents about
online safety, parental controls, digital literacy and the
appropriate use of the Internet by children.
45
WORKFORCE DIVERSITY
Through a number of cable industry organizations,
cable actively encourages diversity within its own
employment and supplier ranks in order to better
reflect the diversity in the communities cable serves.
The Walter Kaitz Foundation, managed by the
National Cable & Telecommunications Association,
raises and distributes more than $1 million annually
to organizations promoting cable diversity. The
National Association of Minorities in Communications
(NAMIC), whose members include cable operators,
programmers, hardware suppliers and others, engages
in education and advocacy in support of diversity,
including an online job bank, an executive leadership
and development program, and a mentorship
program. Women in Cable Telecommunications
(WICT) administers an institute that assists women in
the cable industry in the development of professional
skills and also provides mentoring support. Finally,
the Emma Bowen Foundation was established by the
cable and broadcast industries to increase the access
of minority students to permanent job opportunities.
WWW.NCTA.COM
46
APPENDIX A.
METHODOLOGY AND DATA SOURCES
This Appendix describes the overall methodology used to estimate the economic impact of the cable and
program network industries, and reviews the primary information sources on which Bortz Media’s estimates
and underlying assumptions are based.
OVERVIEW
Economic impact analysis is based on the
interdependence of various economic sectors.
In other words, impact analysis recognizes that
economic activity in one sector of the economy
stimulates activity in other sectors, and attempts to
quantify these relationships. Each dollar created in
one sector is essentially re-spent indefinitely (with
steadily diminishing impacts), resulting in an economic
effect greater than the original stimulus. Due to the
complexity of tracking such dollar flows through the
complete re-spending process, “multipliers” are used
to estimate the total impact of activity in a sector.
The multipliers used are derived from sophisticated
mathematical models that replicate dollar flows in the
economy.
In measuring economic
categorized as follows:
effects,
impacts
are
• Direct impacts. These impacts reflect the economic
activity of cable operators (or program networks)
themselves, including cable system (or program
network) jobs and employee income.
• Linked impacts. These impacts reflect the industryrelated economic activity of industry suppliers.
For cable operators, key suppliers include
program networks, equipment manufacturers and
professional services firms. For program networks,
key suppliers include providers of content such as
the major studios and sports leagues/franchises.
• Indirect impacts. Indirect impacts include: (1)
economic activity generated by the purchase of
goods and services by firms dependent upon the
cable or program network industries (i.e., linked
suppliers), referred to as intermediate effects; and
(2) induced effects, or economic activity generated
by the purchase of goods and services by individuals
whose incomes derive directly or indirectly from
the cable or program network industries. Indirect
impacts are also sometimes termed “re-spending”
effects.
For purposes of simplification, only direct, linked and
total impacts (combining direct, linked and indirect
effects) are presented in this report.
Based on the factors described above, this study
included two key steps: (1) estimation of the direct
revenue flows both to cable operators/program
networks and from cable operators/program
networks to their direct suppliers; and (2) projection
ofs attributable to these flows.
As noted elsewhere in this report, total impact figures
reported for each industry are believed to accurately
reflect the of that industry. However, since the
program network industry is a supplier to the cable
industry, a portion of the program network industry’s
total impacts are also subsumed in the total impacts
estimated for the cable industry. As such, the total
impacts for the two industries as presented in this
report are not additive.
DIRECT DOLLAR FLOW ESTIMATION
Cable operator and program network revenues,
expenditures and the allocation of these expenditures
by economic sector were estimated based on data
from the following sources:
• Review and analysis of 2012 operating and financial
statements for the major publicly held cable
multiple system operators, along with a review
of various investor presentations providing more
detail on individual revenue and expenditure
categories.
• A survey of both large and small cable MSOs
(with respondents representing more than twothirds of all cable subscribers), as well as of the
parent companies of the major programming
networks. These surveys obtained information
on employment and employee compensation, as
well as the disposition of certain key expense and
capital investment categories.
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48
• Review and analysis of detailed operating data
from certain individual cable systems and program
networks/network groups.
• Review of various industry level economic data for
the cable industry, the program network industry
and the major supplier industries for both from the
U.S. Department of Commerce Bureau of Economic
Analysis.
• A comprehensive review of available secondary
source data including information from the
National Cable & Telecommunications Association
(NCTA), SNL Kagan, the Cabletelevision Advertising
Bureau (CAB), cable trade publications and various
other sources. These data sources have been cited
when used directly.
• Interviews with selected industry executives.
Information obtained from the data sources
summarized above was used to create cable industry
and program network industry economic models
for the year 2012. Major categories of funds’ flows
analyzed included: cable system and program network
operations, cable system capital expenditures, cable
operator financing activities, and program network
advertising. Within each industry, each area was
analyzed in detail to avoid double-counting.
Dollar flows from each of these categories were
allocated to cable and program network employee
compensation, the purchase of goods and services
from industry suppliers, or to special classifications
such as payments to government (e.g., taxes,
franchise fees, etc.). Payments to suppliers were
then segmented into individual categories based on
the North American Industrial Classification System
(NAICS) utilized by the U.S. Department of Commerce.
PROJECTION OF ECONOMIC IMPACTS
The dollar flows identified above, as well as other
information obtained from the sources noted, were
used to estimate employment, compensation and
related impacts at all three impact levels - direct
(cable systems/MSOs or program networks), linked
(suppliers) and indirect (re-spending effects).
Direct estimations were estimated directly whenever
possible. For example, cable operator employment
and employee compensation were estimated based
primarily on survey responses from MSOs and public
company reports and presentations. Industry level
data reported by the Department of Commerce were
used as a check on these sources. Similarly, linked
supplier employment estimates were derived from
Department of Commerce sector data, as well as (for
the key program supplier category) surveys of key
program suppliers.
Similarly, for the program network estimates, surveys
of key program network groups represented the key
information source with respect to employment and
compensation.
Indirect impact estimation. Indirect impacts were
estimated using sector level multipliers obtained from
the Regional Input-Output Modeling System (known
as RIMS II) developed by the Bureau of Economic
Analysis at the U.S. Department of Commerce. RIMS
II provides a comprehensive tool for quantifying the
linkages between economic sectors and estimating
aggregates.
Multipliers
utilized
and
resulting
economic
relationships were compared with prior Bortz Media
analyses for consistency.
In any analysis of this type, certain categorization
decisions must be made to accommodate the
economic model utilized, and the level of detail
available regarding the underlying data. Based on our
review of the data and the characteristics of the impact
estimation methodology, moderate variations in the
classification of individual expenditures components
would not have a meaningful impact on the overalls
estimated.
49
COMPARISON WITH EARLIER STUDIES
As noted in Section II, Bortz Media completed a similar
cable industry analysis for the year 2010 (as well as
analyses for the years 1986, 1988, 1990, 2002 and
2007). The methodology and data sources used for
the 2012 analysis are generally consistent with the
approaches used in the prior studies. In particular,
the basis for the development of direct impact
assumptions and the quantification of direct and
linked impacts is virtually identical to that employed in
the prior studies.
With regard to indirect impacts, the estimation
methodology (i.e., the use of multipliers to derive respending effects) is the same as that used in 2010
and prior years. However, the studies in 1990 and
prior years used a different model describing the U.S.
economy (i.e., the Conjoined Input/Output Forecasting
and Simulation Economic Model, instead of RIMS II).
Both models are based on Department of Commerce
data, and have the same goal of quantifying the
linkages between economic sectors. In addition, the
multipliers obtained from both models are similar in
the vast majority of instances.
LIMITATIONS
The limitations associated with the components of
this study are primarily attributable to reliance on
economic relationships developed through a generic
input/output model of the national economy as a
basis for indirect impact estimation. Industry sector
designations, while highly disaggregated, do not
precisely fit the cable or program network industries.
The dollar transactions and relationships between
output, employment and income are averages
representative of all businesses within a particular
classification rather than solely those serving the cable
or program network industries.
We believe these limitations are minimized by our
use of detailed “first round” expenditure data (i.e.,
direct expenditures by cable systems and program
networks), verified through many and varied sources.
As such, while slight methodological differences exist
between the 2002, 2007, 2010 and 2012 studies, we
believe cable industry comparisons involving the
overall estimates resulting from the four studies are
both appropriate and instructive. Similarly, comparing
the program network industry in 2007, 2010 and 2012
is also worthwhile.
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50
APPENDIX B.
CABLE EMPLOYMENT AND BY
STATE AND CONGRESSIONAL DISTRICT
WWW.NCTA.COM
52
ALABAMA
CABLE OPERATOR EMPLOYEES
MAJOR CABLE OPERATORS
2,762
DIRECT AND INDIRECT JOBS
23,009
•
•
•
•
•
Charter
Comcast
Bright House
Mediacom
Time Warner Cable
$3.4 Billion
Cable operators’ $200 billion investment since 1996 has been felt in every community across the nation. As of
2012, the cable industry, directly and indirectly, accounted for almost two million U.S. jobs, which represents
$89 billion in personal income, and the gross economic output attributable to the industry amounted to $291
billion. Cable industry employees are found in all 50 states, and there are 7,100 locally based cable systems.
DISTRICT BY DISTRICT
1ST CONGRESSIONAL DISTRICT
415
332
3,457 jobs
2,766 jobs
$514 million
$412 million
2ND CONGRESSIONAL DISTRICT
5TH CONGRESSIONAL DISTRICT
336
682
2,799 jobs
5,681 jobs
$417 million
$845 million
3RD CONGRESSIONAL DISTRICT
53
320
315
2,666 jobs
2,624 jobs
$397 million
$309 million
362
3,016 jobs
$449 million
WWW.NCTA.COM
54
ALASKA
1,400
• GCI
11,663
$1.7 Billion
55
ARIZONA
4,324
36,021
•
•
•
•
Cox
Suddenlink
Comcast
Time Warner
Cable
• Mediacom
• Cable One
$5.4 Billion
411
314
3,424 jobs
2,616 jobs
$509 million
$389 million
905
324
7,539 jobs
2,699 jobs
$1,122 million
$402 million
823
465
6,856 jobs
3,874 jobs
$1,020 million
$576 million
WWW.NCTA.COM
56
355
2,957 jobs
$440 million
585
3,207 jobs
$477 million
57
342
2,849 jobs
$424 million
ARKANSAS
1,952
16,261
• Cox
• Suddenlink
• Comcast
$2.4 Billion
507
503
4,224 jobs
4,190 jobs
$628 million
$624 million
438
504
3,649 jobs
4,199 jobs
$543 million
$625 million
WWW.NCTA.COM
58
CALIFORNIA
24,306
202,481
• Comcast
• Time Warner
Cable
• Cox
• Charter
• Bright House
• Suddenlink
• Mediacom
$30.1 Billion
427
344
3,557 jobs
2,866 jobs
$529 million
$426 million
323
595
2,691 jobs
4,957 jobs
$400 million
$738 million
59
409
396
3,407 jobs
3,299 jobs
$507 million
$491 million
532
424
4,432 jobs
3,532 jobs
$659 million
$526 million
488
312
4,065 jobs
2,599 jobs
$605 million
$387 million
349
849
2,907 jobs
7,073 jobs
$433 million
$1,052 million
866
309
7,214 jobs
2,574 jobs
$1,074 million
$383 million
724
340
6,031 jobs
2,832 jobs
$898 million
$421 million
344
316
2,866 jobs
2,632 jobs
$426 million
$392 million
390
345
3,249 jobs
2,874 jobs
$483 million
$428 million
WWW.NCTA.COM
60
328
481
2,732 jobs
4,007 jobs
$407 million
$596 million
378
450
3,149 jobs
3,749 jobs
$469 million
$558 million
310
2,582 jobs
$384 million
329
2,741 jobs
$408 million
435
3,624 jobs
$539 million
540
4,498 jobs
$669 million
61
591
4,923 jobs
$733 million
535
4,457 jobs
$663 million
318
2,649 jobs
$394 million
416
3,465 jobs
$516 million
387
3,224 jobs
$480 million
406
3,382 jobs
$503 million
556
471
4,632 jobs
3,924 jobs
$689 million
$584 million
513
428
4,274 jobs
3,565 jobs
$636 million
$531 million
367
364
3,057 jobs
3,032 jobs
$455 million
$451 million
477
661
3,974 jobs
5,506 jobs
$591 million
$819 million
341
343
2,841 jobs
2,857 jobs
$423 million
$425 million
382
365
3,182 jobs
3,041 jobs
$474 million
$452 million
415
489
3,457 jobs
4,074 jobs
$514 million
$606 million
WWW.NCTA.COM
62
519
4,324 jobs
$643 million
574
4,782 jobs
$712 million
634
5,282 jobs
$786 million
842
7,014 jobs
$1,044 million
63
579
4,823 jobs
$718 million
COLORADO
7,508
62,545
•
•
•
•
Comcast
Cablevision
Time Warner Cable
Eagle Communications
$9.3 Billion
1,373
305
11,438 jobs
2,541 jobs
$1,702 million
$378 million
415
1,387
3,457 jobs
11,554 jobs
$514 million
$1,719 million
306
3,408
2,549 jobs
28,390 jobs
$379 million
$4,225 million
WWW.NCTA.COM
64
314
2,616 jobs
$389 million
65
CONNECTICUT
3,427
28,549
•
•
•
•
Comcast
Cablevision
Cox
Charter
$4.2 Billion
671
1,002
5,590 jobs
8,347 jobs
$832 million
$1,242 million
568
645
4,732 jobs
5,373 jobs
$704 million
$800 million
541
4,507 jobs
$671 million
WWW.NCTA.COM
66
DELAWARE
1,694
• Comcast
• Mediacom
14,112
$2.1 Billion
67
DISTRICT OF COLUMBIA
304
• Comcast
2,532
$0.4 Billion
WWW.NCTA.COM
68
FLORIDA
12,850
107,047
•
•
•
•
Comcast
Bright House
Cox
Mediacom
$15.9 Billion
577
1,226
4,807 jobs
10,213 jobs
$715 million
$1,520 million
336
314
2,799 jobs
2,616 jobs
$417 million
$389 million
69
342
315
2,849 jobs
2,624 jobs
$424 million
$390 million
319
749
2,657 jobs
6,240 jobs
$395 million
$928 million
448
335
3,732 jobs
2,791 jobs
$555 million
$415 million
302
323
2,516 jobs
2,691 jobs
$374 million
$400 million
322
372
2,682 jobs
3,099 jobs
$399 million
$461 million
325
313
2,707 jobs
2,607 jobs
$403 million
$388 million
317
337
2,641 jobs
2,807 jobs
$393 million
$418 million
450
581
3,749 jobs
4,840 jobs
$558 million
$720 million
WWW.NCTA.COM
70
340
2,832 jobs
$421 million
401
3,341 jobs
$497 million
2,215
18,452 jobs
$2,746 million
331
2,757 jobs
$410 million
315
2,624 jobs
$390 million
335
2,791 jobs
$415 million
71
310
2,582 jobs
$384 million
GEORGIA
8,655
72,100
•
•
•
•
•
Comcast
Charter
Mediacom
Cox
Bright House
$10.7 Billion
351
1,316
2,924 jobs
10,963 jobs
$435 million
$1,631 million
314
463
2,616 jobs
3,857 jobs
$389 million
$574 million
383
2,350
3,191 jobs
19,577 jobs
$475 million
$2,913 million
WWW.NCTA.COM
72
725
403
6,040 jobs
2,707 jobs
$899 million
$403 million
325
2,707 jobs
$403 million
327
2,724
$405 million
342
2,849 jobs
$424 million
496
4,132 jobs
$615 million
332
2,766 jobs
$412 million
73
606
5,048 jobs
$751 million
HAWAII
1,102
• Time Warner Cable
9,180
$1.4 Billion
660
442
5,498 jobs
3,682 jobs
$818 million
$548 million NATIONAL CABLE & TELECOMMUNICATIONS ASSOCIATION
WWW.NCTA.COM
74
IDAHO
690
•
•
•
•
5,748
Cable One
Time Warner Cable
Suddenlink
Cox
$0.9 Billion
75
366
324
3,049 jobs
2,699 jobs
$454 million
$402 million
ILLINOIS
9,621
80,148
•
•
•
•
•
Comcast
Mediacom
Charter
Suddenlink
Time Warner Cable
$11.9 Billion
353
379
2,941 jobs
3,157 jobs
$438 million
$470 million
363
323
3,024 jobs
2,691 jobs
$450 million
$400 million
553
1,570
4,607 jobs
13,079 jobs
$686 million
$1,946 million
WWW.NCTA.COM
76
500
309
4,165 jobs
2,574 jobs
$620 million
$383 million
983
333
8,189 jobs
2,774 jobs
$1,219 million
$413 million
383
348
3,191 jobs
2,899 jobs
$475 million
$431 million
313
349
2,607 jobs
2,907 jobs
$388 million
$433 million
314
304
2,616 jobs
2,532 jobs
$389 million
$377 million
1,631
13,587 jobs
$2,022 million
77
313
2,607 jobs
$388 million
INDIANA
3,464
28,857
•
•
•
•
•
Comcast
Bright House
Mediacom
Time Warner Cable
Suddenlink
$4.3 Billion
406
311
3,382 jobs
2,591 jobs
$503 million
$386 million
339
585
2,824 jobs
4,873 jobs
$420 million
$725 million
429
333
3,574 jobs
2,774 jobs
$532 million
$413 million
WWW.NCTA.COM
78
428
3,565 jobs
$531 million
313
2,307 jobs
$388 million
79
320
2,666 jobs
$397 million
IOWA
1,946
16,211
• Mediacom
• Cable One
• Cox
$2.4 Billion
440
431
3,665 jobs
3,590 jobs
$545 million
$534 million
701
374
5,840 jobs
3,116 jobs
$869 million
$464 million NATIONAL CABLE & TELECOMMUNICATIONS ASSOCIATION
WWW.NCTA.COM
80
KANSAS
1,884
15,695
•
•
•
•
Cox
Time Warner Cable
Eagle Communications
Suddenlink
$2.3 Billion
316
311
2,632 jobs
2,591 jobs
$392 million
$386 million
81
336
921
2,799 jobs
7,672 jobs
$417 million
$1,142 million
KENTUCKY
2,741
22,834
•
•
•
•
Time Warner Cable
Comcast
Mediacom
Suddenlink
$3.4 Billion
332
376
2,766 jobs
3,132 jobs
$412 million
$466 million
531
305
4,423 jobs
2,541 jobs
$658 million
$378 million
802
395
6,681 jobs
3,291 jobs
$994 million
$490 million
WWW.NCTA.COM
82
LOUISIANA
2,880
23,992
•
•
•
•
Cox
Suddenlink
Charter
Comcast
$3.6 Billion
465
406
3,874 jobs
3,382 jobs
$576 million
$503 million
322
368
2,682 jobs
3,066 jobs
$399 million
$456 million
83
419
900
3,490 jobs
7,497 jobs
$519 million
$1,116 million
MAINE
1,172
• Comcast
9,763
$1.5 Billion
789
383
6,573 jobs
3,191 jobs
$978 million
$475 million
WWW.NCTA.COM
84
MARYLAND
4,8562
38,004
• Comcast
• Mediacom
• Charter
$5.7 Billion
432
497
3,599 jobs
4,140 jobs
$536 million
$616 million
1,357
599
11,304 jobs
4,140 jobs
$1,682 million
$616 million
85
466
386
3,882 jobs
3,216 jobs
$578 million
$479 million
440
3,665 jobs
$545 million
385
3,207 jobs
$477 million
WWW.NCTA.COM
86
MASSACHUSETTS
5,574
46,434
•
•
•
•
Comcast
Charter
Time Warner Cable
Cox
$6.9 Billion
385
597
3,207 jobs
4,973 jobs
$477 million
$740 million
637
1,010
5,307 jobs
8,414 jobs
$790 million
$1,252 million
87
525
598
4,374 jobs
4,982 jobs
$651 million
$741 million
718
5,981 jobs
$890 million
421
3,507 jobs
$522 million
683
5,690 jobs
$847 million
WWW.NCTA.COM
88
MICHIGAN
6,947
57,872
•
•
•
•
•
Comcast
Charter
Bright House
Time Warner Cable
Mediacom
$8.6 Billion
353
351
2,941 jobs
2,924 jobs
$438 million
$435 million
367
354
3,057 jobs
2,949 jobs
$455 million
$439 million
89
343
412
2,857 jobs
3,432 jobs
$425 million
$511 million
386
755
3,216 jobs
6,290 jobs
$479 million
$936 million
362
3,016 jobs
$449 million
455
3,790 jobs
$564 million
340
2,832 jobs
$421 million
996
8,297 jobs
$1,235 million
1,239
9,488 jobs
$1,412 million
334
2,782 jobs
$414 million
WWW.NCTA.COM
90
MINNESOTA
4,021
33,497
•
•
•
•
•
Comcast
Charter
Mediacom
Midcontinent
Sjoberg’s Cable
$5.0 Billion
359
1,045
2,991 jobs
8,705 jobs
$445 million
$1,295 million
354
905
2,949 jobs
7,539 jobs
$439 million
$1,122 million
91
335
350
2,791 jobs
2,916 jobs
$415 million
$434 million
351
2,924 jobs
$435 million
322
2,682 jobs
$399 million
WWW.NCTA.COM
92
MISSISSIPPI
2,171
18,085
•
•
•
•
•
Comcast
Cable One
Suddenlink
Charter
Mediacom
$2.7 Billion
366
612
3,049 jobs
5,098 jobs
$454 million
$759 million
93
760
487
5,881 jobs
4,057 jobs
$875 million
$604 million
MISSOURI
4,467
37,212
•
•
•
•
Charter
Time Warner Cable
Mediacom
Suddenlink
$5.5 Billion
800
332
6,664 jobs
2,766 jobs
$992 million
$412 million
1,002
434
8,347 jobs
3,615 jobs
$1,242 million
$538 million
600
394
4,998 jobs
3,282 jobs
$744 million
$488 million
WWW.NCTA.COM
94
503
4,190 jobs
$624 million
402
3,349 jobs
$498 million
95
MONTANA
650
• Cablevision
5,415
$0.8 Billion
WWW.NCTA.COM
96
NEBRASKA
1,665
13,870
• Cox
• Charter
$2.1 Billion
411
369
3,424 jobs
3,074 jobs
$509 million
$457 million
97
885
7,372 jobs
$1,097 million
NEVADA
1,970
• Cox
• Charter
16,411
$2.4 Billion
581
690
4,840 jobs
5,748 jobs
$720 million
$855 million
359
340
2,991 jobs
2,832 jobs
$445 million
$421 million
WWW.NCTA.COM
98
NEW HAMPSHIRE
1,778
14,812
• Comcast
• Charter
$2.2 Billion
99
1,553
225
12,937 jobs
1,874 jobs
$1,925 million
$279 million
NEW JERSEY
8,547
71,201
•
•
•
•
Comcast
Cablevision
Time Warner Cable
Service Electric
$10.6 Billion
973
356
8,106 jobs
2,966 jobs
$1,206 million
$441 million
374
680
3,116 jobs
5,665 jobs
$464 million
$843 million
1,446
1,277
12,046 jobs
10,638 jobs
$1,793 million
$1,583 million
WWW.NCTA.COM
100
436
3,632 jobs
$540 million
348
2,899 jobs
$431 million 9TH CONGRESSIONAL DISTRICT
380
3,166 jobs
$471 million
1,325
11,038 jobs
$1,643 million
403
3,357 jobs
$500 million
101
549
4,573 jobs
$681 million
NEW MEXICO
1,270
10,580
• Comcast
• Suddenlink
$1.6 Billion
464
405
3,865 jobs
3,374 jobs
$575 million
$502 million
401
33,341 jobs
$497 million
WWW.NCTA.COM
102
NEW YORK
18,731
156,038
•
•
•
•
Time Warner Cable
Cablevision
Comcast
Charter
$23.2 Billion
1,259
345
10,488 jobs
2,874 jobs
$1,561 million
$428 million
2,996
639
24,958 jobs
5,323 jobs
$3,714 million
$792 million
103
404
2,437
3,366 jobs
20,301 jobs
$501 million
$3,021 million
334
339
2,782 jobs
2,824 jobs
$414 million
$420 million
693
418
5,773 jobs
2,482 jobs
$859 million
$518 million
413
431
3,440 jobs
3,590 jobs
$512 million
$534 million
351
509
2,924 jobs
4,240 jobs
$435 million
$631 million
380
430
3,166 jobs
3,582 jobs
$471 million
$533 million
373
929
3,107 jobs
7,739 jobs
$462 million
$1,152 million
308
758
2,566 jobs
6,315 jobs
$382 million
$940 million
WWW.NCTA.COM
104
435
3,624 jobs
$539 million
328
2,732 jobs
$407 million
1,111
9,255 jobs
$1,377 million
527
4,390 jobs
$653 million
586
4,882 jobs
$726 million
540
4,498 jobs
$669 million
105
458
3,815 jobs
$568 million
NORTH CAROLINA
7,821
65,153
$9.7 Billion
•
•
•
•
•
•
Time Warner Cable
Charter
Suddenlink
Mediacom
Comcast
Cox
387
1081
3,224 jobs
9,005 jobs
$480 million
$1,340 million
342
382
2,849 jobs
3,182 jobs
$424 million
$474 million
318
667
2,649 jobs
5,556 jobs
$394 million
$827 million
WWW.NCTA.COM
106
341
2,841 jobs
$423 million
483
4,024 jobs
$599 million
2,068
17,227 jobs
$2,564 million
318
2,649 jobs
$394 million
304
2,532 jobs
$377 million
553
4,607 jobs
$686 million
107
577
4,807 jobs
$715 million
NORTH DAKOTA
460
• Midcontinent
• Cable One
832
$0.6 Billion
WWW.NCTA.COM
108
OHIO
8,148
67,877
$10.1 Billion
•
•
•
•
•
•
Time Warner Cable
Cox
MCTV (Massillon)
Comcast
Suddenlink
Mediacom
364
306
3,032 jobs
2,549 jobs
$451 million
$379 million
420
328
3,499 jobs
2,732 jobs
$521million
$407 million
109
854
490
7,114 jobs
4,082 jobs
$1,059 million
$607 million
508
672
4,232 jobs
5,598 jobs
$630 million
$833 million
414
325
3,449 jobs
2,707 jobs
$513 million
$403 million
339
565
2,824 jobs
4,707 jobs
$420 million
$700 million
843
7,023 jobs
$1,045 million
410
3,415 jobs
$508 million
521
4,340 jobs
$646 million
789
6,573 jobs
$978 million
WWW.NCTA.COM
110
OKLAHOMA
2,535
21,118
• Cox
• Suddenlink
• Cable One
$3.1 Billion
676
339
5,631 jobs
2,824 jobs
$838 million
$420 million
335
861
2,791 jobs
7,173 jobs
$415 million
$1,067 million
111
324
2,699 jobs
$402 million
OREGON
2,745
22,867
• Comcast
• Charter
• BendBroadband
$3.4 Billion
1,457
311
12,138 jobs
2,591 jobs
$1,806 million
$386 million
351
305
2,924 jobs
2,541 jobs
$435 million
$378 million
321
2,674 jobs
$398 million
WWW.NCTA.COM
112
PENNSYLVANIA
12,272
102,232
• Comcast
• Service Electric
$15.2 Billion
315
314
2,624 jobs
2,616 jobs
$390 million
$389 million
3,024
320
25,191 jobs
2,666 jobs
$3,749 million
$397 million
113
305
422
2,541 jobs
3,515 jobs
$378 million
$523 million
1,137
307
9,472 jobs
2,557 jobs
$1,409 million
$381 million
472
439
3,932 jobs
3,657 jobs
$585 million
$544 million
314
532
2,616 jobs
4,432 jobs
$389 million
$659 million
310
1,510
2,582 jobs
12,579 jobs
$384 million
$1,872 million
314
590
2,616 jobs
4,915 jobs
$389 million
$731 million
312
3,599 jobs
$387 million
1,335
11,121 jobs
$1,655 million
WWW.NCTA.COM
114
RHODE ISLAND
1,092
• Cox
9,097
$1.4 Billion
115
428
664
3,565 jobs
5,531 jobs
$531 million
$823 million BORTZ MEDIA & SPORTS GROUP
SOUTH CAROLINA
3,871
31,797
• Charter
• Comcast
$4.7 Billion
533
848
4,440 jobs
7,064 jobs
$661 million
$1,051 million
696
391
5,798 jobs
3,257 jobs
$863 million
$485 million
357
657
2,974 jobs
5,473 jobs
$443 million
$814 million
WWW.NCTA.COM
116
335
2,791 jobs
$415 million
117
SOUTH DAKOTA
600
• Midcontinent
• Mediacom
4,998
$0.7 Billion
WWW.NCTA.COM
118
TENNESSEE
4,516
37,620
• Comcast
• Charter
• Mediacom
$5.6 Billion
398
341
3,316 jobs
2,841 jobs
$493 million
$423 million
622
1,045
5,182 jobs
8,705 jobs
$771 million
$1,295 million
119
379
375
3,157 jobs
3,124 jobs
$470 million
$465 million
406
3,382 jobs
$503 million
332
2,766 jobs
$412 million
618
5,148 jobs
$766 million
WWW.NCTA.COM
120
TEXAS
15,123
125,982
•
•
•
•
Time Warner Cable
Comcast
Suddenlink
Charter
$18.7 Billion
322
348
2,682 jobs
2,899 jobs
$399 million
$431 million
337
338
2,807 jobs
2,861 jobs
$418 million
$419 million
121
341
354
2,841 jobs
2,949 jobs
$423 million
$439 million
1,549
352
12,904 jobs
2,932 jobs
$1,920 million
$436 million
369
340
3,074 jobs
2,832 jobs
$457 million
$421 million
361
316
3,007 jobs
2,632 jobs
$448 million
$392 million
453
347
3,774 jobs
2,891 jobs
$562 million
$430 million
318
317
2,649 jobs
2,641 jobs
$394 million
$393 million
369
351
3,074 jobs
2,924 jobs
$457 million
$435 million
341
510
2,841 jobs
4,249 jobs
$423 million
$632 million
WWW.NCTA.COM
122
748
353
6,231 jobs
2,941 jobs
$927 million
$438 million
347
321
2,891 jobs
2,674 jobs
$430 million
$398 million
502
333
4,182 jobs
2,774 jobs
$622 million
$413 million
398
671
3,361 jobs
5,590 jobs
$493 million
$832 million
532
394
4,432 jobs
3,282 jobss
$659 million
$488 million
396
3,299 jobs
$491 million
123
391
3,257 jobs
$485 million
UTAH
1,427
• Comcast
• Cablevision
11,888
$1.8 Billion
302
405
2,516 jobs
3,374 jobs
$374 million
$502 million
411
309
3,424 jobs
2,574 jobs
$509 million
$383 million
WWW.NCTA.COM
124
VERMONT
418
• Comcast
• Charter
3,482
$0.5 Billion
125
VIRGINIA
6,221
51,824
•
•
•
•
Comcast
Cox
Charter
Suddenlink
$7.7 Billion
355
687
2,957 jobs
5,723 jobs
$440 million
$852 million
695
355
5,790 jobs
2,957 jobs
$862 million
$440 million
800
345
6,664 jobs
2,874 jobs
$992 million
$428 million
WWW.NCTA.COM
126
352
2,932 jobs
$436 million
497
4,140 jobs
$616 million
355
2,957 jobs
$440 million
1,366
11,379 jobs
$1,693 million
127
414
3,449 jobs
$513 million
WASHINGTON
5,321
44,326
• Comcast
• Charter
$6.6 Billion
1,207
352
10,055 jobs
2,932 jobs
$1,496 million
$436 million
348
382
2,899 jobs
3,182 jobs
$431 million
$474 million
324
332
2,699 jobs
2,766 jobs
$402 million
$412 million
WWW.NCTA.COM
128
323
2,691 jobs
$400 million
313
2,607 jobs
$388 million
1,400
11,663 jobs
$1,736 million
129
340
2,832 jobs
$421 million
WEST VIRGINIA
1,077
• Suddenlink
• Comcast
8,972
$1.3 Billion
360
352
2,999 jobs
2,932 jobs
$446 million
$436 million
365
3,041 jobs
$452 million
WWW.NCTA.COM
130
WISCONSIN
4,112
34,255
•
•
•
•
Charter
Time Warner Cable
Comcast
Mediacom
$5.1 Billion
568
548
4,732 jobs
4,565 jobs
$704 million
$679 million
365
489
3,041 jobs
4,074 jobs
$452 million
$606 million
131
345
991
2,874 jobs
8,256 jobs
$428 million
$1,228 million
351
2,924 jobs
$435 million
455
3,790 jobs
$564 million
WWW.NCTA.COM
132
WYOMING
360
• Cablevision
2,999
$0.4 Billion
133

cable across america: an economic impact report

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