In Depth
TV Industry Revenues Off 7% in 2008, Report Says
Television industry revenues are expected to be down 7% this year, according to BIA Advisory Services estimates.
BIA’s Investing in Television Market Report estimates that TV station revenues will be $20.1 billion in 2008, their lowest number in seven years. The decline is attributed to the economic crisis and stagnant ad spending since 2000.
Meanwhile, station transactions are not expected to go beyond $1 billion this year, on sales of approximately 65 stations.
Existing debt and financing structures are expected to keep station sales activity at about the same level in 2009.
BIA’s report projects that the industry’s downward trend will continue in 2009 with a predicted 8.5% decline in revenues.
“The television industry needs to focus more on compelling cross-platform advertising opportunities in order to significantly raise their revenues in the coming years,” Mark R. Fratrik, Ph.D., vice president of BIA Advisory Services, said in a statement. “With the steady improvement of their online and mobile presence they now need to demonstrate to their advertisers the significant value proposition they can offer through a bundled advertising package.”
Dr. Fratrik added that estimates indicate that local TV stations could receive an additional $1.1 billion in ad revenues by 2012 if they embrace multicasting.
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