Study finds cable most profitable media sector over five-year period

Ernst & Young’s Global Media and Entertainment department has found that cable operators were the most profitable out of a group of ten media sectors, and cable networks weren't far behind in third place, with interactive media breaking the pair up by claiming second place.

E&Y ranked 10 sectors three different ways, by profitability over the five-years running from 2006-2010, by profitability for 2010 alone, and in terms of five-year EBITDA performance. Publishing, broadcast television and music all suffered negative results in the third study. The 2006-2010 profitability ranking is: “cable operators had the highest average profitability at 38%, followed by interactive media 35%; cable networks 31%; satellite television 27%; publishing 20%; conglomerates 19%; television broadcast 18% and film and television production, electronic games and music, all at 11%.” Next, the 2010 profitability ranker: “cable operators placing first at 39%; interactive media, 36%; cable networks, 33%; satellite TV, 27%; publishing, 20%; conglomerates, 18%; TV broadcast, 16%; electronic games and film and television production, both at 12%; and music, 9%.” Finally, the 2006-2010 EBITDA pecking order: “interactive media is the fastest growing media and entertainment sector at 15%, followed by electronic games, 14%; cable networks, 10%; cable operators, 10%; satellite TV, 9%; film and television production, 7%; conglomerates, 3%; publishing, -1%; television broadcast, -4%; and music, -5%.”