Direct Answer
21 SEC filers are classified under the Standard Industrial Classification codes that describe the media industry, and their latest annual reports show $91.9 billion of combined revenue and a median operating margin of 2.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Media companies create and distribute news, entertainment and advertising across television, print, digital and streaming, earning from advertising, subscriptions and affiliate fees. Audience migration to digital drives the strategic questions. The first numbers to compare across companies here are revenue by advertising, subscription and affiliate; audience and subscribers; operating margin.
Key Industry Metrics
- Revenue by advertising, subscription and affiliate: Sales split across ads, paid subscriptions and fees from distributors. It shows how dependent the business is on the cyclical ad market versus steadier contracted income.
- Audience and subscribers: Viewers, readers and paying members. They provide the base for ad pricing and subscription revenue, and declines signal weakening reach.
- Operating margin: Operating profit as a share of revenue. Media margins reflect content cost relative to revenue, and shrinking ratings can pressure it.
- Content cost: Spending on programming, production and rights. It often rises faster than revenue, particularly for sports and exclusive content, which squeezes profit.
- Free cash flow: Cash remaining after operating costs and investment. It shows what supports debt reduction and shareholder returns, which matter when leverage is high.
Primary Macro Drivers
- Advertising spending: Brands buy ads on television, digital and print, so budgets set advertising revenue and fall in downturns.
- Streaming adoption: Viewers moving to streaming change how revenue is earned, shifting mix from affiliate fees and ads to subscriptions.
- Programming costs: Rights and production costs for sports and shows set margins, so changes show in content cost and operating margin.
- Political and event cycles: Elections and big events draw ad spending and viewers, so quarters rise in political and event years.
Major Risks
- Cord cutting and ratings decline: Falling pay-TV households shrink fee and ad revenue; watch subscribers, ratings and affiliate revenue trends.
- Rising content cost: Costs for talent and rights rise even as audiences fragment; watch content cost against revenue and operating margin.
- Digital competition: Digital rivals take viewers and ad money; watch digital revenue growth, audience trends and ad pricing.
- High debt: Borrowing against declining cash flows limits options; watch net debt to EBITDA, interest cost and free cash flow.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Media Filers in the SEC Record
21 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4832, 4833, 2711. Their latest fiscal years end between 2024 and 2025, and together they reported $91.9 billion of revenue. Median revenue growth over the prior year was -1.6%. Median operating margin was 2.5% and median net margin -3.1%. Median total liabilities were 84% of total assets, and 8 of 21 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Skydance Corp | $29.2 billion | -1.5% | -18.0% | -21.2% | FY 2024 |
| Fox Corp | $16.3 billion | 16.6% | n/a | 13.9% | FY 2025 |
| Sirius Xm Holdings Inc. | $8.6 billion | -1.6% | 17.2% | 9.4% | FY 2025 |
| News Corp | $8.5 billion | 2.4% | n/a | 15.9% | FY 2025 |
| Nexstar Media Group, Inc. | $4.9 billion | -8.5% | 17.2% | 1.7% | FY 2025 |
| Liberty Media Corp | $4.5 billion | 22.7% | 12.9% | 12.4% | FY 2025 |
| Iheartmedia, Inc. | $3.9 billion | 0.3% | -0.5% | -12.2% | FY 2025 |
| Sinclair, Inc. | $3.2 billion | -10.7% | 5.5% | -3.1% | FY 2025 |
The 8 largest of 21 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Media guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
More in Communication Services
- Communication Services sector overview
- Media & Entertainment
- Magazine Publishing
- Mobile Gaming
- Local Discovery Platforms
- Mobile Virtual Network Operators
- Live Entertainment
- Music Labels & Publishing
- Internet Portals
Put it to work
Frequently Asked Questions
What are the main KPIs for the Media industry?
Key performance indicators for the Media industry include: Revenue by advertising, subscription and affiliate; Audience and subscribers; Operating margin; Content cost; Free cash flow. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Media industry?
The Media industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Media industry?
The primary risks for Media companies include: Cord cutting and ratings decline, Rising content cost, Digital competition, High debt. Investors should assess each company's exposure to these factors and its track record of navigating them.