Study: Commercial Radio/TV Annual Direct And Indirect Impact On Economy $1.17 Trillion In GDP, 2.47 Milion Jobs

Economic Impact

The NATIONAL ASSOCIATION OF BROADCASTERS is touting a new study by WOODS & POOLE ECONOMICS, supported by BIA ADVISORY SERVICES, that shows the local commercial broadcast television and radio industry annually generates $1.17 trillion of Gross Domestic Product (GDP) and 2.47 million jobs, qualified as being both direct and through "stimulative" effect (e.g. a ripple effect on other industries) on the American economy.

In the study, direct employment with local commercial broadcasters was estimated at more than 318,000 jobs generating over $53 billion in economic impact, with radio responsible for over 130,000 jobs and $21 billion GDP. However, a third of the jobs credited to broadcasters are actually in other businesses that are characterized as "supporting" local broadcasting by providing goods and services to the industry, thus pulling in industries as far afield as transportation, public utilities, and transportation, as well as telecommunications and manufacturing. Further, the study credits broadcasters with creating over $132 billion in GDP and more than 794,000 jobs in a "ripple effect" on other industries, namely radio and TV employees' consumption of goods and services.

The study explained its expansive definition of broadcasters' impact on the economy by stating, “Other industries are impacted by local television and radio broadcasting because they provide goods and services used in creating local television and radio broadcasting and advertising. Industries as varied as telecommunications, public utilities, manufacturing, transportation and retail trade provide inputs into the production of local television and radio broadcasting.”

“The income from local television and radio broadcast jobs flows through the economy creating additional jobs and income in various economic sectors,” added the study. “A job in local television and radio broadcast stations multiplies itself by helping create jobs in construction, farming, mining, state and local government and all other economic sectors. The workers in the industries supplying goods and services to local television and radio broadcast workers in turn consume goods and services.”

“AMERICA’s local broadcast radio and TV stations play a unique role in every community across the country. They keep citizens informed with local news, viewers entertained with the most-watched programming and families safe with lifeline emergency information,” said NAB President/CEO GORDON SMITH. “But broadcasting plays a pivotal economic role as well, creating hundreds of thousands of well-paying jobs while helping hometown small businesses reach local consumers through advertising.”

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