Local Radio and TV Are Significant Contributors To The Gross National Product

Local television and radio broadcasting contributes 7% of the nation's Gross Domestic Product, or $1.17 trillion annually, as well as 2.52 million jobs attributable to the industry every year, according to an National Association of Broadcasters-commissioned study conducted by Woods & Poole Economics, with support from BIA/Kelsey. The study calculated that the local broadcast industry employs over 300,000 people directly and in support industries, creating $49.32 billion in GDP annually. Television accounts for almost 187,000 of these jobs, as well as over $30 billion in GDP, while radio employs 118,000 people and contributes a little over $18 billion to the GDP. Through the consumption of goods and services by industry employees, local commercial broadcasting generates almost $135 billion in additional GDP and more than 833,000 jobs nationwide. The economic impact of the commercial local broadcast industry, terrestrial television and radio stations, has three major components.

First, the direct impact of the industry is the result of its significant size: 1,370 commercial television stations and more than 11,700 commercial radio stations sustaining more than 300 thousand jobs and more than $49 billion in output.

Second, workers in the commercial local broadcast television and radio industry consume goods and services in all other sectors of the economy supporting more jobs and creating more income and output. This ripple effect is estimated to result in 833 thousand jobs and $135 billion in output.

Third, the output of commercial local broadcast television and radio industry stimulates economic activity by providing a forum for advertising that is free to consumers. An estimated $986 billion in United States output and 1.38 million jobs are attributable to the stimulative effects of advertising on local television and radio.