Study Measures Broadcasting's Contribution To GNP, Jobs
February 24, 2014 at 1:43 PM (PT)
A new study by WOODS & POOLE ECONOMICS, with support from BIA/KELSEY, found that the local commercial broadcast television and radio industry contributes $1.24 trillion of Gross Domestic Product (GDP) and 2.65 million jobs to the American economy annually. The analysis, which breaks down broadcasters' influence on the economy of all 50 states and the DISTRICT OF COLUMBIA, concluded that both television and local radio broadcasting's economic impact will continue to grow in the coming years.
"Broadcast radio and television stations not only provide valuable local news, weather and public affairs programming to local communities, but also serve as a key driver for economic growth in AMERICA's hometowns," NAB Pres./CEO GORDON SMITH said. "Whether it is by providing hundreds of thousands of jobs or offering an advertising platform for small businesses, local broadcasting has an unmatched legacy as an engine for economic development and growth."
The report is being released in conjunction with the NAB State Leadership conference, where 500 broadcasters from across AMERICA will be visiting members of Congress this week and leaving behind individualized state economic reports documenting the job and economic impact of local broadcasting.
The analysis found that direct employment from local commercial broadcasting is estimated at more than 313,000 jobs, generating more than $55 billion annually in economic impact. Broadcast radio contributes 125,000 jobs that result in almost $23 billion in GDP.
"The commercial local broadcast industry ... is critically important to the U.S economy as a whole and to local economies in particular," said the study. "Local radio and television's key role in the dissemination of entertainment and local programming is well established. Its important value to the national economy is often overlooked, and in many ways taken for granted."
The study also found that Local broadcasting has a ripple effect on other industries of over $138 billion in GDP and more than 856,000 jobs. "The income earned by workers in jobs directly related to local television and radio broadcasting, either in the industry itself or in the many suppliers that support the industry directly, helps create additional economic activity," said the analysis. "Each worker directly employed in local television and radio broadcasting maintains a household and consumes all of the goods and services American workers consume. A worker in local broadcast television advertising consumes manufacturing output when he or she purchases an automobile. A worker in local radio broadcasting consumes construction sector output when he or she purchases a new home."
The study estimated local broadcast TV and radio advertising generated $1.05 trillion in GDP and supports 1.48 million jobs. "The advertising provided by commercial local television and radio is unique in its comprehensive coverage and very low cost to consumers," said the report. "Local television and radio advertising serves an important role for both consumers and businesses in providing economic information on product prices and features. This information increases market efficiencies and results in greater demand for well made and well priced goods and services. The additional demand contributes to aggregate economic growth."