Interactive Companies Most Profitable, After Cable Operators

MediaPost, 3/14/11

Interactive media ranked as the second-most-profitable industry segment from 2006 to 2010 after cable operators, according to a new study by Ernst & Young. The interactive category, which includes companies providing access to information and entertainment through search engines, portals and other online formats, had an average EBIDTA margin of 35%, compared to 38% for cable service providers.

Following interactive in profitability was the cable network business at 31%; satellite television, 27%; publishing, 20%; conglomerates, 19%; broadcast TV, 18%; and film and television production, electronic games and music, each at 11%. In terms of EBIDTA dollars, interactive was tops with 15% growth during the four-year period — just ahead of cable networks, at 14%, and cable operators and satellite television, both at 10%.

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