SNL Kagan Study Shows Modest TV Industry Growth

August 10, 2007
A new SNL Kagan study concludes that revenue growth for the TV industry has been modest overall because the success of record licensing deals overseas for big network hits has not spread to lesser hits. Record deals were cited for “Lost,” “Desperate Housewives,” “CSI: Crime Scene Investigation” and “CSI: Miami.”

The 2007 edition of “Economics of TV Programming & Syndication” concluded that international markets are again seeking out U.S. programming after years of looking to local sources for their content. It estimated that over the next 10 years, international revenues from television series could increase at an annual rate of about 4.3 percent. The report also stated that cable networks are increasingly ordering scripted and reality series, while paying big license fees for off-network one-hour series such as the “CSI” franchise. According to SNL Kagan, the downside has been station syndication.

“No big hits (like ‘Seinfeld’ or ‘Friends’) have developed recently,” said senior analyst Deana Myers. As a result, she said, “deal prices are not as high as they were five years ago, but, on the flip side, we are seeing much higher prices on secondary cycles of ‘Seinfeld’ and ‘Friends.’”

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