CHANTILLY, Va. (Dec. 22, 2009) –
The television industry will end 2009 with
lower than expected revenues of $15.6 billion, a 22.4 percent decline from
2008, in a year that was dominated by shifting advertising budgets and a
poor economy, according to BIA/Kelsey, a
strategic and financial advisor to media companies in the local marketplace.
The significant drop also begins a leveling-off of television industry
revenues to the mid-$10 billion level — not seen since the mid-1990s —
through at least 2013, as reported in the
fourth edition of BIA/Kelsey’s “Investing
In Television® Market Report.”
BIA/Kelsey
sees 2010 revenues for the television industry as increasing slightly to
$16.1 billion, of which $130 million in additional revenues will come from
online advertising.
The company notes that online income brought
the industry $518 million in 2009, a 12 percent increase over last year’s
$463
million. BIA/Kelsey predicts continuous annual double-digit revenue growth
from online channels, such as Internet and mobile, through 2013, when the
industry should reach the $1 billion mark.
The “Investing
In Television® Market Report”
also shows
that while most markets did poorly in 2009, others will manage to post
positive numbers in 2010, primarily due to significant state and local
elections. Included in the list are several Pennsylvania markets, including
Philadelphia (6.5 percent) and Pittsburgh (5 percent); Las Vegas (5
percent); and Chicago, St. Louis and Hartford-New Haven, which all are
expected to post 4.5 percent increases in 2010.
“While
television’s numbers are tapering down due to audience erosion from other
media delivery options, we continue to see that local TV remains a valuable
way to reach relatively larger audiences, critical for mass communications
in political campaigns,” said
Mark
Fratrik, Ph.D., vice president, BIA Advisory Services. “Additionally, online
revenues are expected to grow as stations get more sophisticated in the way
they sell to advertisers and integrate their mobile and Internet offerings
with their broadcasting operations.”
The chart below shows television station and Internet revenues from 2003-2008 and BIA/Kelsey’s projections through 2013.
BIA/Kelsey posts a monthly update of television station values and
transactions on its Web site at
http://www.bia.com/resources_trends.asp.
“Investing in Television” provides comprehensive listings of all digital
television stations, including all full power stations and their final
position allocations now that the digital conversion has passed. The guide
also includes the more than 1,400 multicast signals currently provided by
local television stations.
A
comprehensive profile of all 210 television markets (plus Puerto Rico)
and television market projections through 2013 are available in the
fourth-quarter edition of the “Investing
In Television® Market Report” and the “2009
Investing In Television® Ownership Report.” Both publications are part of the
“Investing In”
financial guide series that includes market trend analysis,
demographic and economic overviews, competitive overviews, technical
data, ownership data, pending and completed transactions, and Arbitron
ratings. Information on these publications is available on the BIA Web
site at
http://www.bia.com/publications_reference_tv.asp.
BIA/Kelsey also provides the “Investing
In Television® Pocket Guide,”
a convenient, abbreviated portable
reference guide to all of the television markets. The guide’s compact design
allows readers to rapidly identify key markets and
important station details. In addition, BIA/Kelsey publishes
investment reference guides and provides data services for the television
and newspaper industries. For more information, call (800) 331-5086 or
e-mail
info@bia.com.
