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December 22, 2009
BIA/Kelsey Expects TV Station Revenues to End Year Lower Than Anticipated; Levels Last Seen in 1990s Predicted Through 2013
Some Small Markets Manage to Post Positive Numbers;
Online Revenues Continue to Increase and Will Hit $1 Billion by 2013
CHANTILLY, Va.
(December
22,
2009)
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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 – 4th Edition of IITV – 3
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.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through Consulting and Valuation Services, Research, Continuous Advisory Services, and Conferences.
Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directories markets, as well as to government agencies, law firms
and investment companies looking to understand trends and revenue
drivers. BIA/Kelsey’s annual conferences draw executives from across
industries seeking expert guidance on how companies are finding
innovative ways to grow. Additional
information is available at
www.bia.com and
www.kelseygroup.com.
The company’s blogs are located at
http://blog.bia.com/bia/ and
http://blog.kelseygroup.com, and it can be found on Twitter
through
http://twitter.com/BIAKelsey.
For more information contact:
Eileen Pacheco
BIA/Kelsey
(781) 556-1026 | Eileen@tango-group.com
MacKenzie Lovings
BIA/Kelsey
(703) 802-2992 | mlovings@bia.com
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