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32. 1997 Economic Census





926. Cable and Pay TV--Revenue and Expenses

[In millions of dollars (19,111 represents $19,111,000,000), except percent. Based on a sample of taxable employer firms with one or more establishments that are primarily engaged in the dissemination of visual and textual television programs on a subscription or fee basis. For SIC 4841 (see definition below source). Based on the 1987 Standard Industrial Classification code; see text, Section 17, Business]

 
TOTAL TOTAL PERCENT DISTRIBUTION PERCENT DISTRIBUTION
ITEM
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
 
    Total and other pay TV revenue 19,111 22,165 23,895 26,653 28,769 29,304 32,541 37,027 41,499 46,945 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Advertising 1,472 1,882 2,100 2,491 2,981 3,597 4,466 5,007 5,627 6,643 7.7 8.5 8.8 9.3 10.4 12.3 13.7 13.5 13.6 14.2
Program revenue 2,971 3,816 4,112 4,423 4,440 4,714 4,843 5,438 6,313 7,473 15.6 17.2 17.2 16.6 15.4 16.1 14.9 14.7 15.2 15.9
Basic service 9,559 10,933 11,985 13,532 14,904 14,547 16,310 18,621 21,134 24,255 50.0 49.3 50.2 50.8 51.8 49.6 50.1 50.3 50.9 51.7
Pay-per-view and other premium service 4,075 4,351 4,465 4,708 4,880 4,662 5,068 5,696 5,906 5,994 21.3 19.6 18.7 17.7 17.0 15.9 15.6 15.4 14.2 12.8
Installation fees 273 302 324 390 417 427 445 508 555 619 1.4 1.4 1.4 1.5 1.4 1.5 1.4 1.4 1.3 1.3
Other cable and pay TV revenue 761 881 909 1,109 1,147 1,357 1,409 1,757 1,964 1,960 4.0 4.0 3.8 4.2 4.0 4.6 4.3 4.7 4.7 4.2
 
    Total operating expenses (NA) 19,354 20,154 21,232 22,648 23,492 26,428 30,471 35,060 41,606 (NA) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Annual payroll (NA) 2,816 2,973 3,533 3,824 3,931 4,519 5,061 6,027 7,337 (NA) 14.5 14.8 16.6 16.9 16.7 17.1 16.6 17.2 17.6
Employer contributions to Social
Security and other supplemental benefits (NA) 588 667 801 866 915 1,000 1,150 1,293 1,581 (NA) 3.0 3.3 3.8 3.8 3.9 3.8 3.8 3.7 3.8
Program and production costs 1 (NA) 5,926 6,317 6,763 7,644 8,333 9,442 11,239 12,839 14,920 (NA) 30.6 31.3 31.9 33.8 35.5 35.7 36.9 36.6 35.9
Depreciation (NA) 3,611 3,634 3,704 3,848 3,934 4,433 4,990 6,117 7,246 (NA) 18.7 18.0 17.4 17.0 16.7 16.8 16.4 17.4 17.4
Lease and rental payments (NA) 513 516 589 631 648 682 764 836 998 (NA) 2.7 2.6 2.8 2.8 2.8 2.6 2.5 2.4 2.4
Purchased repairs (NA) 343 341 373 432 459 555 615 648 740 (NA) 1.8 1.7 1.8 2.0 2.1 2.0 1.8 1.8
Insurance (NA) 110 115 145 165 162 175 190 213 236 (NA) 0.6 0.6 0.7 0.7 0.7 0.7 0.6 0.6 0.6
Telephone, other purchased communications (NA) 133 139 158 191 225 283 321 350 389 (NA) 0.7 0.7 0.7 0.8 1.0 1.1 1.1 1.0 0.9
Purchased utilities (NA) 188 201 220 220 210 215 241 265 318 (NA) 1.0 1.0 1.0 1.0 0.9 0.8 0.8 0.8 0.8
Purchased advertising (NA) 467 472 537 601 708 891 1,062 1,153 1,402 (NA) 2.4 2.3 2.5 2.7 3.0 3.4 3.5 3.3 3.4
Taxes (NA) 310 332 408 423 424 429 436 470 499 (NA) 1.6 1.6 1.9 1.9 1.8 1.6 1.4 1.3 1.2
Other operating expenses (NA) 4,349 4,447 4,001 3,803 3,543 3,804 4,402 4,849 5,941 (NA) 22.5 22.1 18.8 16.8 15.1 14.4 14.4 13.8 14.3


NA Not available.
1 Includes costs from basic cable, pay-per-view, premium services, in-house programs, and other program and production costs.

Source: U.S. Census Bureau, Annual Survey of Communication Services.

http://www.census.gov/svsd/www/ascs.html

Note: data reflect revised benchmarking to the 92 Census. **************************************************************************************** Cable and Other Pay Television Services (SIC 4841)

Establishments primarily engaged in the dissemination of visual and textual television programs on a subscription or fee basis. Included in this industry are establishments which primarily engage in cablecasting and which also produce taped program materials. Excludes separate estab-lishments primarily engaged in producing taped television or motion picture program materials.

* ANNUAL SURVEY OF COMMUNICATION SERVICES

PURPOSE

To provide estimates of revenue and expenses for the communication services industries. The United States Code, Title 13, authorizes this survey and provides for mandatory responses.

COVERAGE

All firms with payroll that provide telephone communication, radio and television broadcasting, cable television and other communication services (SIC 48). Coverage reflects 1987 SIC classifications definitions beginning in 1991. In 1994, domestic communication industries had some 40,000 employer establishments and estimated revenue of more than $264 billion.

CONTENT

Data collected include: total revenue and revenue by source; total expenses and expenses by type; number of locations by kind of business; and industry specific inquiries such as telephone communication revenue by type of user and number of cable subscribers. In the first year of a new sample, participants report data for both the current and preceding year. In subsequent years, only current year data are requested.

FREQUENCY

Annually since 1990; reported data are for activity taking place during the calendar year. Data collection begins about 4 months after the close of the reporting year, and continues for about 4 months. Samples are reselected every 5 years and updated annually; use of latest sample began in 1991.

METHODS

A mail-out/mail-back survey of about 2,000 selected employer firms. The sample was constructed from communications firms listed in the Standard Statistical Establishment List (SSEL). The SSEL contains Federal Identification Numbers (EINs) for establishments with payroll, and locations for listed businesses. EINs may represent one or more establishments and companies with payroll may have one or more EIN.

Firms are first stratified by payroll and kind of business group. All companies with total revenue (estimated from payroll) above applicable size cutoffs are included in the survey and report for all their industry EINs. In a second stage, unselected EINs are stratified by kind of business group and revenue, and a simple random sample is taken from each stratum.

The sample is updated for employer business "births" and "deaths" in an annual procedure. Companies and EINs that are not active in a survey year are dropped from the sample. New EINs are identified in a birth selection procedure and included in the survey.

* Definition of Terms

Revenue

Operating Revenue. Billings for services rendered and any sales of merchandise during the survey year, even though payments may be received at a later date. Excludes income from interest, investments, gifts, loans, contributions or grants; the sale of securities, real estate, etc.; sales taxes or other taxes collected from customers and remitted directly by the firm to a local, State, or Federal tax agency; revenue from the sale of merchandise and equipment from retail establishments; and revenue from a domestic parent organization, or from franchise locations owned by others and any franchise or license fees.

Total Revenue. For tax-exempt firms, it includes all government subsidies used to offset operating or capital deficits, private gifts, loans, contributions or grants, and all other non-operating receipts such as income from investments, the sale of securities, and real estate. Total revenue also includes any operating revenue incurred by the tax-exempt firm.

Cable Television and Other Services

Advertising revenue. Revenue from the sale of time to advertisers or sponsors for national, spot and local advertising; classified channels; and program guides and other printed material. Commissions paid to agency representatives and brokers are excluded.

Program revenue. Revenue received from system operators and other customers for programming services.

Basic revenue. Subscription fees received from residential and commercial customers for basic services.

Pay-per-view and other premium service revenue. Revenue from pay-per-view and other premium services, such as movie channels.

Installation fees. Revenue from the installation of basic, pay-per-view, and other premium services. Includes all reconnect fees.

Other cable and pay TV revenue. Revenue from all other cable and pay television services, such as service charges, rental or lease of channel capacity, etc. Includes system operators revenue from shop-at-home programs.

Telegraph and other message communication revenue. Revenue from telegraph and other message communications, such as electronic mail, facsimile transmis-sions, telegram and telex, and paging services.

Other communication services revenue. Revenue from all other point-to-point communication services, including satellite communications and radar station operations. Operating Expenses

Costs incurred during the survey year even though payment may be made at a later date. Exceptions are annual payroll and employer contributions for employee benefits, which are reported on a cash basis. Excludes interest on loans and sales taxes and other taxes collected from customers and paid directly to a taxing authority.

Annual payroll. All salaries, wages, commissions, bonuses, and allowances for vacation, holiday, and sick leave paid to employees during the survey year. For corporations, it includes amounts paid to officers and executives; for unincorporated businesses, it does not include payments to proprietors or partners. Annual payroll is reported on a cash basis before employee deductions for Social Security, withholding taxes, insurance, union dues, etc.

Employer contributions for employee benefit plans (REPORTED ON A CASH BASIS)

Plans required under Federal and State legislation. The employers cost for all legally required programs, such as Social Security and Medicare (FICA), workers compensation insurance, unemployment tax, State disability insur-ance programs, etc.

Other fringe benefit plans. The employers cost for programs not required by law such as pension plans, stock purchase plans, union-negotiated benefits, life insurance benefits, insurance premiums for hospital and medical plans, etc.

Program and production costs (cable television firms only). The costs for providing basic cable services, pay or premium television services, original programs produced or developed in-house, talent fees, music license fees, the value of bartered programming, and all other costs of programming and production.

Retransmission consent fees (cable television firms only). Fees paid by cable companies for the retransmis-sion of broadcast signals. Includes the fair-market value (not the actual costs) of reciprocal non-cash exchanges, such as bartered advertising time, promotions, and car-riage of new local and national cable channels.

Depreciation. Depreciation charges on assets owned by the company. Includes depreciation on assets rented or leased to others by the company under an operating lease agreement. Also includes depreciation against assets owned by the company within leaseholds and assets obtained through capital lease agreements. Excludes depreciation on intangible assets and assets leased to others by the company under a capital lease agreement. These charges are not adjusted for the value of depreciable assets sold or traded for replacement purposes.

Buildings, offices, and structures. Depreciation charges on buildings, offices, and structures owned by the company (except those included as part of communication or transmission systems defined below).

Communication systems (telephone firms only).Depreciation charges on communication systems, including optical fiber, digital and/or microwave switching equipment, satel-lite transmission, radio systems, terminal equipment, poles, cable, etc.

Vehicles, machinery and equipment, and other tangible assets. Depreciation charges on vehicles, machinery and equipment, and other tangible assets.

Lease and rental. Payments made to other companies for the rental and leasing of assets owned by them. Excludes payments to a parent company or organization or any of its subsidiaries, and installment payments for assets obtained through capital lease agreements.

Buildings, offices, and structures. Payments made to other companies for the rental or leasing of buildings, offices, and structures (except those included as part of communication or transmission systems defined below).

Communication systems (telephone firms only). Payments made to other companies for the repair of communication systems, including optical fiber, switching equipment, satellite transmission, radio systems, terminal equipment, poles, cables, etc.

Vehicles, machinery and equipment. Payments made to other companies for the rental or leasing of vehicles and other machinery and equipment.

Purchased repairs. Payments made to other companies for repairs. Excludes repair costs included as part of a lease or rental agreement, improvements for which depreciation accounts are maintained, and repairs performed by employees of the company or its subsidiaries.

Buildings, offices, and structures. Payments made to other companies for repairs (including charges for parts and labor) to buildings, offices, and structures (except those included as part of communication or transmission systems defined below).

Transmission systems (except telephone firms). Payments made to other companies for the repair of transmission systems, including towers, antennas, cables, wires, transmitters, transmission lines, converters, tap offs, power supplies, microwave equipment, master control equipment, and other transmitting equipment.

Vehicles, machinery and equipment. Payments made to other companies for the repair of vehicles and other machinery and equipment.

Insurance. The cost of all commercial insurance used to protect the company against losses or damages to buildings, structures, and machinery and equipment caused by fire, flood, wind, boiler explosion, or any other cause. Also includes premiums on fidelity bonds of employees, insurance to protect against liability for deaths or injuries of persons, and damages to property of others. Excludes cost of premiums for workers compensation.

Telephone and other purchased communication services. The cost of nonrevenue-generating purchased communication services such as telephone, telex, telegraph, teletype, etc.

Purchased utilities. The cost of purchased utilities, including electricity; fuels consumed for heat, power or generating electricity; water; sewer; and refuse removal. Excludes payments for these utility services if included as part of a lease or rental agreement.

Purchased advertising. The cost of purchased advertising including payments to other firms for printing, media, and other services and materials used for advertising. Taxes and licenses. The cost of taxes and licenses, including business license fees, real estate and personal property taxes (such as taxes on motor vehicles, machinery, equipment, and inventories), and special assessments. Also includes FCC license fees. Excludes income, sales, payroll, excise taxes, and other taxes collected from customers and paid to local, State, or Federal government agencies.

Other operating expenses. All other operating expenses not reported above, including billing services; news gathering services; rating services; travel expenses; dues and subscriptions; accounting and legal fees; office supplies; and data processing expenses, including the cost of computer software purchased under licensing agreements. Excludes interest on loans, income taxes, and local sales and excise taxes.

*



https://allcountries.org/uscensus/926_cable_and_pay_tv_revenue_and.html

These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.

Copyright © 2006 Photius Coutsoukis and Information Technology Associates, all rights reserved.