Key Points
- Local broadcast television supported more than 1.5 million U.S. jobs and generated $748 billion in annual economic impact.
- Advertising drove the majority of the impact, accounting for nearly $628 billion in economic output.
- The report projects stable local TV revenues through 2028, despite shifting revenue mixes.
The local television broadcast industry saw another year of strong contributions to the American economy, with more than 1.5 million jobs supported and over $748 billion in annual gross domestic product impact, according to a report released on Thursday.
The report, conducted by Woods & Poole Economics with support from BIA Advisory Services, found local broadcast TV contributed nearly two-thirds of the total economic impact of the media industry in general, when considering radio and other forms of broadcasting.
The study was distributed to reporters by the National Association of Broadcasters (NAB), the main lobbying arm of the independent commercial TV and radio industry.
Direct television-related activity accounted for $33.7 billion in gross domestic product contributions and supported nearly 196,000 jobs in the U.S., mainly at local TV stations in news, sales and administrative roles.
Beyond direct employment the report emphasizes the multiplier effect created by local TV operations. TV stations purchase goods and services from a wide range of industries including telecommunications utilities manufacturing transportation and retail trade. Those supplier relationships generate an additional $86.35 billion in GDP and support more than 488,000 jobs nationwide according to the study.
The largest share of television’s economic contribution comes from its stimulative effect on the broader economy driven primarily by advertising, the report said. Woods & Poole estimates that local television advertising stimulates $627.99 billion in economic output annually and supports more than 866,000 jobs.
The firm noted broadcast TV’s near-universal household reach and low cost to consumers make it a uniquely efficient platform for delivering price and product information that drives consumer demand and competitive behavior among businesses.
“Paid advertising on television provides consumers with product information and price comparisons that enable efficient consumer expenditures,” the report notes adding that competitors also benefit from exposure to new features pricing strategies and innovations which can lead to improved products and lower prices.
The economic impact of local television varies significantly by state but remains consistently large in major media markets. California leads the nation with $92.07 billion in television-related economic impact and more than 180,000 jobs supported. Texas follows with $68.97 billion in television impact and more than 142,000 jobs while New York contributes $44.97 billion and nearly 84,000 television-related jobs. Florida, Pennsylvania, Illinois and Ohio each generate more than $25 billion in annual television-driven economic activity.
Looking ahead Woods & Poole projects a stable outlook for local broadcast television revenues through at least 2028. While over-the-air and digital revenue mixes continue to evolve the report concludes that television’s role as a primary advertising platform and source of local information will continue to anchor its economic contribution. The study does not include cable satellite streaming networks or non-commercial stations, meaning the broader video ecosystem’s total impact would be higher if those sectors were added.
