The Economic Power of Local Television: A Driving Force in the American Economy
The local television broadcast industry continues to be a significant contributor to the American economy, with its impact felt across various sectors. According to a recent report, local broadcast TV supports over 1.5 million jobs and generates more than $748 billion in annual gross domestic product (GDP). This substantial contribution highlights the industry’s importance as a economic driver, accounting for nearly two-thirds of the total economic impact of the media industry as a whole.
A Detailed Look at the Economic Impact
The report, conducted by Woods & Poole Economics in partnership with BIA Advisory Services, delves into the specifics of local broadcast TV’s economic influence. Direct television-related activities, such as those at local TV stations, contribute $33.7 billion to the GDP and support nearly 196,000 jobs. These numbers are significant, but they only tell part of the story. The multiplier effect created by local TV operations is substantial, with TV stations purchasing goods and services from various industries, including telecommunications, utilities, manufacturing, transportation, and retail trade. This, in turn, generates an additional $86.35 billion in GDP and supports over 488,000 jobs nationwide.
The Power of Advertising: A Key Driver of Economic Growth
The largest share of television’s economic contribution comes from its stimulative effect on the broader economy, primarily driven by advertising. Local television advertising is estimated to stimulate $627.99 billion in economic output annually, supporting more than 866,000 jobs. The report highlights broadcast TV’s near-universal household reach and low cost to consumers, making it an efficient platform for delivering price and product information. This, in turn, drives consumer demand and competitive behavior among businesses. As the report notes, “Paid advertising on television provides consumers with product information and price comparisons that enable efficient consumer expenditures.” Furthermore, competitors benefit from exposure to new features, pricing strategies, and innovations, leading to improved products and lower prices.
Geographic Variations and Industry Outlook
The economic impact of local television varies significantly by state, with major media markets experiencing consistently large effects. California leads the nation, with $92.07 billion in television-related economic impact and over 180,000 jobs supported. Texas follows closely, with $68.97 billion in television impact and more than 142,000 jobs. Other states, such as New York, Florida, Pennsylvania, Illinois, and Ohio, also generate substantial economic activity, with each exceeding $25 billion in annual television-driven economic impact. Looking ahead, Woods & Poole projects a stable outlook for local broadcast television revenues through at least 2028, with television’s role as a primary advertising platform and source of local information anchoring its economic contribution.
Conclusion and Broader Implications
The economic power of local television is undeniable, with its impact felt across various sectors and industries. As the media landscape continues to evolve, it is essential to recognize the significant contributions of local broadcast TV. While the report does not include cable, satellite, streaming networks, or non-commercial stations, the broader video ecosystem’s total impact would be higher if those sectors were added. The study’s findings have important implications for policymakers, industry stakeholders, and consumers, highlighting the need to support and promote local television as a vital component of the American economy. As the industry looks to the future, it is clear that local broadcast TV will continue to play a significant role in shaping the economic landscape of the United States.
