Broadcast industry

Industry Snapshot

General Industry: Communications

Career Cluster: Arts, A/V Technology, and Communication

Subcategory Industries: Cable and Other Subscription Programming; Cable Television Distribution Services; Cable Television Providers; Network Television Broadcasting; Radio Broadcasting; Satellite Radio; Web Broadcasting

Related Industries: Advertising and Marketing Industry; Internet and Cyber Communications Industry; Motion Picture and Television Industry; Music Industry; Publishing and Information Industry; Telecommunications Equipment Industry; Telecommunications Infrastructure Industry

Annual Domestic Revenues: Television: $73 billion (IBISWorld, 2022); radio: $23 billion (IBISWorld, 2022); internet radio: $5 billion (IBISWorld, 2022)

Annual Global Revenues: Television: $249 billion (Business Research Company, 2020); radio: $35 billion (Statista, 2022)

NAICS Numbers: 515, 51913, 517110, 515120, 515110

Summary

The broadcast industry transmits visual and audio information across a number of electronic mass media. It includes terrestrial and satellite television and radio, as well as the Internet segment. The Internet segment includes web television, which distributes original, short-form content, often referred to as “webisodes” or web series; on-demand streaming television, which uses Internet protocols to deliver previously aired traditional television programs to a computer or mobile device; and podcasts, or serialized digital recordings that are meant to be downloaded and played at consumers’ leisure.

Because mass information-transmittal technologies continue to evolve, the broadcast industry itself is a diverse field in a constant state of evolution. Broadcast corporations consistently upgrade to take advantage of new technologies and communications outlets. Even as the industry evolves, however, its major source of revenue across all platforms and media remains advertising.

History of the Industry

The technologies behind the broadcast industry date back to communications technologies developed in the eighteenth and early nineteenth centuries, such as the nonelectric telegraph (invented in 1794 by Claude Chappe) and the electric telegraph (which Bavarian inventor Samuel Thomas von Sömmerring introduced in 1809). The introduction of the electromagnet in 1825 enabled an electric current to travel over wires from one source to another, leading to the development of the telegraph (perfected by Samuel Morse in 1835). Morse would also invent a code by which long-distance communications could take place via the telegraph. Called Morse code, it become popular among citizens and businesses worldwide.

The telegraph became the popular vehicle for long-distance communications for nearly half a century, until the telephone was invented in 1877. Shortly before the invention of the telephone, however, another innovation would take the dissemination of information on a different path. After two physicists, James Clerk Maxwell of Scotland and Heinrich Hertz of Germany, theorized that radio waves could be projected into space in the same manner that heat and light could be projected (an idea that would be verified in 1866 by American dentist Mahlon Loomis), Italian inventor Guglielmo Marconi put the concept to practical use. He projected the first wireless radio signal across the English Channel in 1899 and across the Atlantic Ocean in 1902, creating a wireless equivalent of the telegraph.

Marconi’s device had the potential to form the basis of a broadcast system. However, at the time he invented it, there was still no real concept of mass broadcasting—that is, of sending information instantaneously to many different recipients. The primary mass medium remained newspapers. It did not take long, however, for entrepreneurs to realize that with wireless transmission, a single sender could reach many different receivers. Once people began to capitalize on that fact, broadcasting was born. By the early 1920’s, several radio broadcast stations were licensed and functioning in the United States.

Radio broadcasts would remain the dominant form of broadcast communications for the first few decades of the twentieth century. Known as old-time radio (OTR), these broadcasts represented the golden age of radio programming. However, the invention of television in the 1920s would drastically change the broadcast landscape for decades to come. Television was not invented by a single individual but rather by several people working independently. In 1926, Scottish inventor John Logie Baird gave the first public demonstration of a mechanical television. One year later, Bell Telephone Labs and American Telegraph and Telephone gave the first American demonstration of the television system, and in 1928 General Electric released the Octagon, a television system with a three-inch screen that is considered by some to be the first commercially available television. (The Baird Televisor, sold between 1930 and 1933 in the United Kingdom, is often considered the first mass-produced television.)

French and Russian versions soon followed, and over the next decade, a number of other countries introduced their own versions of the television. Consequently, broadcasts using this growing medium increased in volume. This trend continued until World War II, and television growth surged once again after the war’s end. Over the decades that followed, televisions became more prevalent in private households and gained features such as color screens and remote controls.

Running parallel with the evolution of radio and television broadcast technologies was the development of content to broadcast. In addition to news broadcasts, a variety of entertainment programs also began to emerge. The number of radio and television stations grew exponentially from the beginning of the twentieth century, and each was able to survive from steady advertising revenues. By the 1950s, radio entertainment began to fade in the face of television’s growing prevalence and popularity. Instead of featuring a variety of comedic and dramatic entertainment programming, radio reverted primarily to playing music and broadcasting occasional news programs and sporting events. Soap operas and other fictional programming, once a prominent part of radio’s repertoire, moved to television.

In the 1940s and 1950s, rural and remote areas of Arkansas, Oregon, and Pennsylvania that had been receiving poor television signals were able to connect to common antennae via cable hookups. This strategy gave rise to cable television. The growth of popular use of cable television continued through the 1960s, as investors became increasingly interested in the technology. Answering fears that cable companies were impinging on the territory of established television networks, the Federal Communications Commission (FCC) imposed heavy restrictions on cable companies, denying them access to network television signals. These restrictions continued in the United States until the early 1970s, when the government began to ease and modify its regulatory hold on the industry. Cable companies adapted, first with the creation of Home Box Office (HBO) and later with the establishment of the Turner Broadcasting Service (TBS). Continued deregulation of cable television spurred rapid growth of the cable industry.

Other avenues for television transmission arose to augment and compete with cable, including the introduction of a satellite-based system for distribution by HBO. Cable developed additional features in the early twenty-first century, such as video-on-demand technologies and other forms of interactive television. By 1998, nearly two-thirds of American households had some sort of cable subscription.

The emergence of Internet broadcasting (or webcasting) as another aspect of late twentieth century broadcasting has given a new visage to this ever-evolving industry. During the early years of Internet-based radio and television, Internet content and distribution channels were considered primary competitors for the traditional radio and television studios and stations. However, over time, traditional broadcast corporations began to utilize the Internet technologies and integrate them into their business models. The radio industry, for example, has largely incorporated web-based broadcasting. Some radio stations offer both online streaming simulcasts and downloadable podcasts of their traditional content. Others offer online news twenty-four hours per day, so that listeners seeking information can still obtain it from these stations even when they are broadcasting music over the airwaves. In addition, some independent Internet radio stations continue to thrive. In much the same way, major television networks offer “rebroadcasts” of television programs online, and they also provide original content related to their popular programs, such as brief behind-the-scenes documentaries, alternate endings, and webisodes that fill in plot gaps between full-length episodes. There are also a number of online streaming services—such as Netflix, Hulu, and Amazon—that host previously-aired television content and also produce their own original series.

The Industry Today

The broadcast industry today is vast and widespread, employing a variety of media to entertain, inform, and otherwise share information with viewers, listeners, and clients. Many of the media technologies that had grown to prominence by the early twentieth century still exist, albeit in updated forms. At the same time, newer technologies have added to the ability of these media to reach and retain audiences and have even supplanted these traditional media sources.

The contemporary broadcast industry includes a number of subsectors. One of the longest-standing subsectors is radio. Although television and other visual media have absorbed some of radio’s earlier functions (such as fictional programming), radio remains a viable medium that broadcasts all musical genres, news-oriented talk shows, and many sporting events. While this content remains relatively stable, radio technology has evolved significantly. In addition to maintaining traditional programming on amplitude-modulated (AM) and frequency-modulated (FM) broadcast bands, radio has diversified to include subscription-funded, commercial-free satellite radio services that resemble cable or satellite television services. High-definition radio systems have also been established. These systems use digital signals to transmit more information than analog systems can handle. Some radio stations have suffered in the face of these changes, but radio continues to grow and thrive, largely because radio stations and networks are increasingly incorporating new technologies such as high-definition and online streaming to reach broader audiences.

Television broadcasting is also undergoing a steady evolution. Television remains one of the most popular media, and it continues to provide an eclectic collection of programs and systems from which consumers may choose. Traditional network-based programming, showing popular programs, news, and sporting events, is still performing well in the contemporary economy. Many networks are integrated into complex cable systems that enable viewers to watch both broadcast-network television and cable-only programming. In 2009, all broadcast television programming was required by law to transition to digital formats, so that former analog-television frequencies would become available for public-safety communications and personal wireless systems. With this conversion to digital programming, consumers have increased abilities to record shows for later viewing, obtain cooking lessons, order popular films at home, and access a wide range of other entertainment services. Digital picture quality is also often significantly improved over that of analog broadcasting.

The Internet has emerged as another vital part of the broadcast industry and, as of 2015, is poised to overtake traditional forms of broadcast media. A wide range of live news reports and programs, do-it-yourself (DIY) shows, and entertainment shows traditionally found on television or radio are being produced for and broadcast on the Internet. Most television stations make shows available to watch through their own online portals and other streaming sites after they air. This has affected the Nielsen rating system—which only takes data from household television viewings—as well as the way viewers watch television content, and producers' advertising strategies. Online streaming services like Netflix, Amazon Prime, and Hulu have produced popular and award-winning original series for their platforms that bypassed traditional broadcast all together. There are also many smaller web series produced for viewing on the Internet through a number of websites, such as YouTube. Many radio stations broadcast simultaneously on the airwaves and online, while others air only on the Internet. Many former radio and television personalities have joined web-based media in order to broadcast their particular brands of entertainment, possibly reaching a larger volume of fans. A large number of major, stand-alone stations are in operation and are thriving in a diverse market as a result of a strong influx of advertising capital.

The diversity of the broadcast industry has imparted it with a modicum of insulation from dramatic drops in revenues. In many cases, the industry is also heavily protected by the government. While the U.S. broadcast industry is mostly privatized (yet subject to government regulation), many other countries’ respective industries are more carefully managed publicly. The Japanese government, for example, owns 100 percent of the public share of Japanese corporations’ broadcasting revenues. Likewise, most Scandinavian nations own 93-95 percent of their broadcasting industries. The exception is Denmark, which owns 65 percent. Such governance entails strong state involvement in broadcast programming and content, as well as political and economic support for broadcast companies.

Revenues in the broadcast industry have traditionally been derived from advertising sales—station and network advertising departments sell television and radio air time for commercials, often to advertising firms that than resell the time to their individual clients. In the latter part of the twentieth century, however, this traditional course of revenue generation was altered to include banner advertising on web sites. Television and radio advertising is generally targeted based on the demographic audience assembled by a particular network or program. Web advertising, by contrast, may be targeted not only by specific content—say, a webisode of the National Broadcasting Company (NBC) program Heroes—but also by key words found on the web page (say, any page featuring the term “super heroes” or “powers”). The benefits of such advertising are obvious—rather than reaching only a geographically limited television station or radio broadcast range, Internet banner advertising reaches out to a worldwide audience that is tuned toward web-based activity or business. Moreover, web advertisers need not rely on a particular show or network to be popular with (and thereby assemble) their target audiences. Rather, they can use key words and browser logs to find target consumers anywhere on the World Wide Web.

A microcosm of the global broadcasting industry may be found in the largest broadcasting company in the world (by number of employees), the British Broadcasting Corporation (BBC). Encompassing radio, television, and Internet distribution, as well as an extensive news agency, the BBC has affiliates all over the world. The company’s commercial arm—BBC Studios—reported revenues around £1.63 billion in 2021, with more than half of that number coming from abroad.

From the perspective of viewers, listeners, or web patrons, the broadcast industry provides entertainment, news, and information in various forms. From the perspective of broadcasters, meeting these consumer demands allows them to earn more money, through a combination of consumer payments for pay-per-view (PPV) programming, monthly service membership dues, sales, and a steady influx of revenue from advertising companies. Particularly for broadcast networks, however, the importance of advertising revenue indicates that the traditional model of the viewer-as-consumer does not apply to television, for example. In broadcast network television, the viewing audience is the product being sold, the network (which uses its content as a mechanism to assemble the audience) is the seller, and advertisers are the consumers. It is precisely for this reason that the competing model of Internet distribution of content has destabilized the industry, rather than simply augmenting it.

The broadcast industry continues to be a major industry and economic contributor, generating hundreds of billions of dollars in revenue around the world and directly employing hundreds of thousands of people. These employees include actors and other celebrity personalities, as well as screenwriters, programmers, sales representatives, makeup artists, set designers, equipment handlers, and so on. The industry is also surrounded by a number of peripheral partner industries, including electrical engineering, advertising, public relations, and manual labor. Although some sectors have been adversely affected by the evolution of broadcasting systems, the industry as a whole continues to diversify and thrive in the early twenty-first century, particularly as new broadcasting methods continue to reshape the industry.

Radio

Traditional commercial radio broadcasting earns revenue through advertising, adopting the model of selling an audience to an advertiser. Some public radio stations, by contrast, are run as nonprofit outlets that are paid for in part by government and corporate underwriting but mostly by voluntary contributions by listeners. Another radio technology, satellite radio, operates on a fee-for-service model, in which listeners subscribe to a whole menu of stations for a monthly fee and most of the content is commercial free.

Potential Annual Earnings Scale. Radio industry salaries vary based on the size and range of the employer stations, the type of position held, and the length of the employee’s professional experience in the industry. At the higher end of the scale are producers. According to PayScale in 2022, these professionals earn an average of almost $45,000 per year. At the lower end of the spectrum is on-air talent (those with limited air time or roles in a given radio show), earning an average annual salary of just $35,776 in 2022.

Clientele Interaction. As in much of the broadcast industry, the client of a radio station or network may be a listener or it may be an advertiser. The level of interaction with listeners varies based on the position held—disc jockeys and show hosts will speak with listeners and the general public more than advertising executives, for example. Advertising account managers are the primary personnel responsible for interacting with advertising clients, cultivating and maintaining their business, and ensuring that they see an adequate return on their investment. Regardless of position, radio industry employees must be prepared for public interaction in some form during their tenures.

Amenities, Atmosphere, and Physical Grounds. Radio stations are generally small, although they may be part of larger communications organizations or networks that control other stations or networks. On-air personalities such as disc jockeys, hosts, and others tend to dress casually, while advertising and business managers and executives will be more professional in appearance. Radio stations are centralized around the booths in which the show hosts or disc jockeys perform, although many such facilities also have office areas for administrative and nonentertainment tasks, such as accounting, advertising, and human resources.

Typical Number of Employees. The number of employees at a radio station also varies in terms of the station size and broadcast range, as well as the amount of money generated from advertising sales. Some radio programs feature a number of disc jockeys, hosts, or other on-air personalities, while other programs employ a producer and a single disc jockey or host to conduct a number of tasks. Some stations employ dozens of individuals, while others—considerably smaller in size and range—employ only a handful of individuals to oversee radio shows and perform other tasks.

Traditional Geographic Locations. Radio stations are found in virtually every geographical setting. The largest radio stations are typically located in urban centers and metropolitan areas, where larger concentrations of listeners reside and more potential advertisers are located. Small radio stations with limited range are found in rural and more sparsely populated areas, with only a small number of employees and limited advertising revenue.

Pros of Working for a Radio Station. Radio offers those interested in the communications field the opportunity to build their skills while honing their interest in music, politics, or other popular fields of study through on-the-job training. In many cases, those who are interested in becoming a radio host or disc jockey will be given the occasional opportunity to perform on air. The atmospheres of radio stations can be exciting and stimulating, depending on the music played or the topics of on-air discussion.

Cons of Working for a Radio Station. Although it continues to evolve, the radio industry jobs market is continuously shrinking in terms of on-air positions. Although advertising sales remain relatively strong, many stations only employ a few salespeople. In addition, many disc jockeys and on-air personalities are being replaced with automated music programming or syndicated shows. The wages are lower than those of other industries, and hours can often be erratic. Additionally, on-air figures must be careful to stay within the parameters set forth by the station and their producers.

Costs

Payroll and Benefits: Salaries for radio industry personnel vary based on the position as well as the station and geographic location in which the position is offered. The highest paid employees of a radio station are usually management, such as the general manager, while on-air talent, such as news reporters or disc jockeys, earn salaries at the lower end of the range.

Supplies: Radio stations require a number of major supplies, including microphones, computers, satellite dishes, transmitters, and electrical supplies. Some also require mobile broadcasting systems. Additionally, radio stations require office supplies, including telecommunication systems and stationery.

External Services: Radio stations may call upon external vendors to assist in the maintenance of small and large hardware systems, such as transmitters, telephone and microphone systems, and computer networks. Larger radio stations, by virtue of occupying larger spaces, may contract private security and janitorial vendors. Additionally, many stations may use the services of restaurants and caterers for public relations events and other venues.

Utilities: Radio stations use a considerable amount of energy, particularly electricity, in the course of their regular operations. Because of this high degree of use, some stations are turning to renewable energy sources to power their signal and operations. Radio stations also use a great deal of telephone service, maintaining a large number of phone lines for caller use, as well as for general office use.

Taxes: The degree to which radio stations pay taxes depends largely on the geographic location of the station. They routinely withhold income taxes from full-time employees and pay local property taxes and state and federal business income taxes. Many countries are considering taxes on the purchase and use of music. The industry has resisted such taxes, but as governments seek additional revenues in the early twenty-first century, the issue has not yet been settled.

Royalties: Broadcasters must pay royalties on the material they broadcast.

Television

Premium cable television stations, such as HBO and Showtime, provide content to viewers for a fee. Some of these stations, such as HBO, are now offering a subscription-based digital service. Basic cable stations can also receive some revenue from cable subscription fees. Most television programming, however—including broadcast television networks, basic cable stations, and many digital platforms—sells audiences to advertisers as its primary source of income.

Potential Annual Earnings Scale. The salaries of television and cable-television employees vary based on the financial standing of the station itself, geographic location of the position, and the level of experience the position demands. At the highest end of the pay scale are the executive producers, who according to PayScale earned an average salary of just over $95,539 per year in 2022. At the other end of the spectrum are news reporters, with a median annual salary of just under $46,938 in 2022.

Clientele Interaction. Client interaction in television broadcasting is dependent on the level of interaction a program requires. For example, newscasters, television reporters, and program hosts must interact considerably with the public while on location, while production crews and advertising salespeople spend considerably less time engaging the general viewing public. It falls to advertising salespeople, however, to interact most directly with the advertisers who are their stations’ primary clients. Overall, a television station and network must be focused on viewers, how to generate a larger audience, how to generate a more valuable audience (which may be based on desirable demographic targets, rather than sheer size), and how best to sell access to that audience to its advertisers. It is thus important for a network simultaneously to cultivate its brand for viewers and to maintain a positive reputation among advertisers as well.

Amenities, Atmosphere, and Physical Grounds. The overall atmosphere of a television station or network headquarters is dynamic and fast-paced yet professional. There are many working parts and teams within such a setting, all of which must work closely during programming and off-air operations. Hours vary based on the position held and the type of work performed.

Typical Number of Employees. The number of employees at a television station or network varies based on the size of the company, the amount of money it generates, and the range of its broadcast operations. For example, television giant NBC, along with its other ventures through NBCUniversal, has over 300,000 people working for it around the world. By contrast, a small television station on the Isle of Wight in Great Britain has only twelve full-time staff members. Some community television stations have even fewer employees.

Traditional Geographic Locations. Television stations tend to be located close to major population centers in order to reach the maximum number of viewers (as well as to enjoy close proximity to advertisers). New York City, for example, has about sixteen stations operating within its city limits. Many small American municipalities have community-access television stations, which offer local programming and updates.

Pros of Working for a Television Station. Television stations are dynamic venues with fast-paced environments. Pay is typically above average, particularly for those who have experience in front of a camera, and the opportunities for growth act as an incentive for those who enter the industry at a lower pay scale. Additionally, those who seek a more prominent role in television may gain the experience they need at a smaller station or network before moving on to a larger market or upward within the small station.

Cons of Working for a Television Station. The hours of work at a television station or network are often long and erratic, depending on the programming schedule. Although news anchors and senior management earn competitive salaries, there is a sizable gap between those individuals and lower-level employees in terms of salary. Additionally, television is a very competitive industry—those who seek to join it and advance quickly must have great flexibility and patience, starting their careers in smaller markets before advancing to larger ones.

Costs

Payroll and Benefits: The payroll and benefits offered at television stations vary based on the size of the station or network and the strength of the company’s financial outlook. The highest salaries go to station managers and executive producers, while production assistants and reporters earn lower salaries, trading financial gain for professional experience.

Supplies: Television broadcasting requires a great deal of electronic software and hardware supplies. Among these items are cameras, microphones, recording equipment, transmitters, and computers. Many stations use remote systems, such as news vans and helicopters. They also require a broad range of office administrative supplies and equipment, such as stationery, telephone and computer systems, and copy machines.

External Services: Although the operations of most television systems are managed in-house (or, in the case of broad networks like NBC, governed through a parent company), some external services are required. Among these are catering, makeup and hair, vehicle rental, and custodial and security services. Additionally, many of the systems used, such as Internet, phone, and satellite links, are provided by outside companies.

Utilities: Television stations require a great deal of energy-oriented utilities, such as electricity and fuel (to power generators at remote locations). Additionally, they require extensive telephone services and networks, as well as Internet and cable services.

Taxes: Like any business, television stations collect and pay employee income taxes, as well as paying commercial income taxes, property taxes, and other assessments. In some countries in which government funds are used to support the industry, taxes are being sought on the relationship between these stations and cable television providers so that additional tax revenues may be generated. In the United States, many public and community-access television stations and networks are eligible for exemption from income taxes because they are nonprofit entities.

Royalties: Broadcasters must pay royalties on the material they broadcast.

Internet Broadcasters

Internet broadcasters include purveyors of original, online-only content, as well as services that make available traditional television and radio programming via Internet protocols. They generally allow content to be “streamed,” or accessed as a temporary file that is only consumed while it is downloaded and is then erased. Some sites also allow consumers to download and retain content to be consumed at a later time, possibly on a portable device.

Original video and audio shows may be made available through web sites that mimic traditional radio or television stations, providing one or more live streams of broadcast content throughout the day. They may also be offered through more encyclopedic broadcasting services that provide access to a wide range of content from many different sources, either through the web on video-content websites such as YouTube, subscription streaming services such as Netflix, or through proprietary Internet software such as Apple’s iTunes. In addition to such large-scale options, the ease of hosting content online through third-party web hosting vendors allows individual, extremely low budget shows to have their own, dedicated web sites and to operate independently of any parent network or organization. Such a show, such as The Guild, may provide only a single, brief episode each week through its web site, and it may flesh out the site with information about performers and offers of merchandise for sale.

Potential Annual Earnings Scale. The pay scales of Internet broadcasting companies and stations depend largely on the financial support and advertising-based revenues they earn. Internet television streaming companies such as Netflix, Hulu, and Amazon make up a large portion of the market and pay very well. Netflix, for example, is one of the top-paying tech companies in the United States, with a median base salary of $159,509 in 2021. The pay scale of other online video platforms can vary. Independent content creators who become YouTube partners and are in the top 1,000 channels could earn up to $23,000 a month. That pay is dependent upon view counts and ad revenue and while it is possible to make money from YouTube videos, most channels do not receive that kind of income. The salaries of online radio broadcasters vary based on the size of the station and the amount of advertising dollars it earns. Many large online radio stations, such as those managed by iHeartMedia, Disney, and AOL, seek out individuals to manage their own online stations through their companies, paying hourly wages. According to Simply Hired, the average annual salary for an online radio disc jockey as of 2021 was $66,000.

Clientele Interaction. Internet broadcasting employees see a wide range of client interaction, based on the size and revenue model of the company. Online disc jockeys conduct much of this interaction via the web, using e-mail and other Internet-based communications services. Dedicated sales and advertising personnel, however, may have more direct contact with potential clients and listeners alike as a major portion of their work schedules. Small single-show or -podcast operations may be sole proprietorships, in which the podcast personality also takes orders for T-shirts.

Amenities, Atmosphere, and Physical Grounds. Many online radio stations are operated out of an individual’s home, although a significant number of them are managed through corporate headquarters. In light of the medium, the atmosphere for such stations is usually casual and reflective of the tastes and interests of the employee. The majority of the work is conducted on a computer, so equipment requirements tend to be simpler than those in a television or traditional radio station.

Typical Number of Employees. Internet broadcasters may be considerably smaller in terms of operations than traditional radio or television stations. At times, only one or two people manage such web sites, although larger stations may be operated by corporations with hundreds of advertising, technical, and administrative personnel in addition to disc jockeys and show hosts.

Traditional Geographic Locations. Internet-based broadcasting companies are found all over the world. The virtue of the Internet in this arena is the fact that any individual who has Internet service may establish an online radio station. Thus, online stations may be found even in rural locations.

Pros of Working for an Internet Broadcasting Company. For individuals who would like to enter radio or television broadcasting but at the same time avoid the competitive environment and hierarchy of such stations, online broadcasting provides an alternative. Individuals in this field are often free to speak their minds and play their preferred music while enjoying exposure to the entire Internet, as opposed to a limited geographical location. Additionally, many online radio and television stations are based in an employee’s home, adding to the comfort and relaxed atmosphere of the job.

Cons of Working for an Internet Broadcasting Company. While some online broadcasters may earn over $60,000 per year, most online stations do not offer high salaries. Additionally, such stations have budgets that depend wholly on advertising and word of mouth—a lack of money and viewership in an increasingly saturated market may cause some stations to cease operations.

Costs

Payroll and Benefits: Large media companies with an Internet broadcasting component pay salaries and benefits to Internet staff comparable to those paid to other staff. Small concerns whose scope is such that they could be viable only on the Internet may be run by only a few people or even a single person and may not pay regularly at all. Many Internet broadcasters exist between these extremes.

Supplies: Internet broadcasters require a great deal of computer hardware and software in order to conduct their broadcasting operations. Those stations with television-style programs also require sets, microphones, and digital equipment. Larger stations need basic office supplies and telephones in order to conduct sales and marketing activities.

External Services: The external services employed by Internet broadcasting companies and stations include accounting and marketing vendors, electricians and technical services, and advertising. They may also call upon consultants and externally based content writers to minimize full-time employee salaries and benefits packages.

Utilities: Internet broadcasting companies use a great deal of electricity and telephone services, particularly as the latter of these utilities often serves as the fundamental vehicle over which web-based programming is broadcast. Additionally, these stations and organizations require fuel for heating and water usage.

Taxes: Internet broadcasters are typically liable for payroll taxes, sales taxes, and income taxes, subject to state and federal laws and depending on the size of the organization. Some states in the United States apply special use taxes for broadcasters that use public telephone networks to generate profits or deliver a high volume of for-profit programming. Some programmers are exempted from income and sales taxes by their public service programming.

Royalties: Broadcasters must pay royalties on the material they broadcast.

Industry Outlook

Overview

Developed in the early twenty-first century, the broadcast industry has become one of the main vehicles by which news and entertainment are distributed to a mass audience. It reaches into the homes of people in every country via radio, television, computer, and mobile devices. The industry employed over 225,000 people in the United States alone in 2022.

The industry in the late 2010s was in a state of transition as traditional cable television and radio broadcasts weathered the industry shift away from traditional broadcasting mediums. Network television continues to suffer from the explosion of successful competitors. By 2019, it was reported that streaming services had overtaken traditional TV, with 85 percent of American adults reporting they watched more than half of their broadcast entertainment on streaming services in 2022.

Previously, much of the equipment and systems used in television and radio required specialized training, and stations needed large staffs of specialists, each trained to operate a separate piece of equipment. Increasingly, however, much broadcast technology is becoming more user-friendly and multipurpose, so fewer personnel are needed to accomplish the same number of tasks. As the technologies used in the industry continue to evolve, it is likely that this trend will continue. Loosening regulations regarding studio consolidation may also hamper the growth of the industry. Networks and stations are now more freely able to merge operations with one another than they were in the past. As a result, single companies own multiple stations. This trend allows networks to grow by enveloping smaller stations and networks, but this type of growth tends to produce fewer jobs than does the creation of entirely new stations or companies.

Thus, the dramatic twenty-first century evolution of the broadcast industry is expected to continue. Much of this change may be attributed to the increased popularity of newer elements of the industry. For example, conventional AM/FM radio stations are experiencing slowed job growth largely because satellite and internet radio stations are gaining in popularity. Satellite stations, by virtue of their subscription-based, nationwide listening audience, are able to sell larger advertising contracts to major corporations more effectively than AM/FM stations can. Internet broadcasters also compete with traditional radio and television stations.

One development in broadcasting is credited with giving the overall broadcast industry a tremendous boost. Digital network television, cable stations, and radio are becoming increasingly prevalent throughout the world. In comparison with analog systems, these digital technologies offer better sound and picture quality, more channels (and thus more viewing options), and more interactive abilities between the system and the consumer. Digital conversions have already taken place in the United States and, according to the International Telecommunication Union, 119 countries in Europe, the Middle East, Africa, and Central Asia should have made the conversion by June 2015. The introduction of digital technology and online streaming services have changed the industry considerably and caused declines in revenues for terrestrial radio and traditional television networks.

In a field that is constantly changing as a result of both creative demand and improving technology, it is difficult to present a fully accurate forecast of broadcasting’s revenues in the future. This difficulty is primarily because such technologies as the Internet, high-definition (HD) formats, and satellite systems are increasingly being integrated into both television and radio rather than acting as direct competitors. Such technologies are expected to improve the delivery of programming to viewers and listeners.

Employment Advantages

The broadcast industry is an attractive one, offering employees such professional rewards as wealth and celebrity (albeit, often to only a select few). Competition for jobs in broadcasting is high, largely because of this perception of glamour and also in light of the relatively few stations and companies that offer upward mobility. The broadcast industry offers potential employees an obvious benefit, one that few other industries outside of the entertainment field may offer: Those who are employed by broadcasters have an opportunity to reach a large audience. The high profile of broadcasts demands the highest quality a broadcaster can muster, and industry workers often evince a great deal of passion and zeal. If they succeed, the wide audience for their work will include potential future employers and colleagues.

Another important advantage and benefit broadcasting offers is an opportunity to work with actors, political leaders, professional athletes, and other celebrities. Whether a broadcaster is creating a show, an interview, or a news story, the high profile of the subject is an element that few other industries may offer their employees. Broadcasters are also among the first entities on the scene when news breaks and major incidents occur, whether those incidents are political, sports-related, or otherwise newsworthy.

Broadcasting is an atypical career. Television, radio, and Internet broadcasters’ work hours are rarely fixed, and subject matter varies from program to program. Broadcasting demands talent, skill, dedication, and creativity from every component.

Annual Earnings

As the early twenty-first century unfolded, the network television broadcast industry saw competition from both the satellite television industry and the emergence of digital cable, as well as additional competition from new media such as the Internet. This competition has prompted the broadcast industry, which is experiencing declining advertising revenue, to embrace multiple platforms and invest in alternative content-delivery technologies, such as web-based broadcasting and mobile technology. According to IBISWorld, the annual domestic revenue for the US television broadcasting industry as of 2022 was $73 billion.

The radio industry, meanwhile, has experienced considerable flux as a result of the increased popularity of Internet and satellite radio services. As these technologies are integrated into the industry, the new, broader radio industry appears to be generating improved revenues. With an estimated $23 billion in revenue reported in 2022, the United States’ domestic radio industry holds the largest percentage of the global market. While advertising revenue for terrestrial radio is declining, online radio revenues are expected to experience double-digit growth moving forward.

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