Industry Risk Ratings Synopsis

This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Satellite, Television and Radio Relay Operations in Australia industry. Industry Risk is assumed to be 'the difficulty, or otherwise, of the business operating environment'.

The report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).

This approach is new in that it analyses non-financial information surrounding each industry. Industries are scored on a 9-point scale, where 1 represents the lowest risk and 9 the highest. The Industry Risk score measures expected Industry Risk over the coming 12-18 months.

Industry Definition

This industry comprises management units primarily engaged in the provision of specialised telecommunications applications including the delivery of satellite communications services and television and radio relay station operations. Activities included within the first category include satellite tracking and communications telemetry services as well as the operation of radar stations, satellite terminal stations and associated facilities. These stations plus facilities are operationally connected with one or more terrestrial communications systems and are capable of transmitting telecommunications to or receiving telecommunications from satellite systems. Key users of these services are predominantly found within other components of the general communications industry. The industry is not concerned with the provision of mobile telecommunication services via satellite nor the actual provision of commercial or public radio and/or television broadcasting services.

Report Contents

Risk Overview

The Risk Overview chapter includes sections on Industry Definition and Activities, Industry Risk Score and Risk Rating Analysis. The Industry Definition and Activities section provides a detailed definition of the activities carried out by operators in this industry as defined in NAICS. A list of the primary activities of the industry is also included. The Industry Risk Score section provides the Overall Industry Risk Score as well as the Risk Scores for each of the three types of risk covered that combine to form the Overall Industry Risk Score. These three types of risk are Structural Risk, Growth Risk and External Sensitivity Risk. The Risk Rating Analysis section discusses the underlying factors contributing to the Overall Industry Risk Score.

Structural Risk

The Structural Risk chapter looks at risk arising from within the industry itself and provides a detailed discussion of the industry’s level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Each of the key indicators is discussed in detail in this section.

Growth Risk

The Growth Risk chapter looks at risks arising from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Detailed analysis is provided discussing the reasons for the growth scores of both.

Sensitivity Risk

The Sensitivity Risk chapter looks at risks arising from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant (up to 6) external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate.

Industry Risk and Industry Risk Scoring Methodology

This chapter provides an overview of how IBISWorld defines Industry Risk and discusses the methodology used to arrive at an Industry Risk Score. There is also a table that provides a definition of the seven levels of Industry Risk.

J7129 - Satellite, Television and Radio Relay Operations in Australia
B - Mining in Australia
I - Transport and Storage in Australia
J - Communication Services in Australia
K - Finance and Insurance in Australia
M - Government Administration and Defence in Australia
P9121 - Radio Services in Australia
P9123 - Free to Air Television Services in Australia
P9124 - Pay Television in Australia

Related Reports:
Snapshots China TV Broadcasting 2009
Snapshots Germany TV Broadcasting 2009
The Global Animation Industry
Recorded Media Manufacturing and Publishing in Australia - Industry Risk Rating Report
Radio Services in Australia - Industry Risk Rating Report
Free to Air Television Services in Australia - Industry Risk Rating Report
Radio Broadcasting in the US - Industry Risk Rating Report
Satellite Telecommunications Providers in the US - Industry Risk Rating Report
Snapshots US Radio Broadcasting 2009
Snapshots Canada TV Broadcasting 2009