04.29.2010 10:00 AM
BIA Expects Broadcast Income to Reach $17 Billion
TVRevenuesCHANTILLY, VA.: BIA/Kelsey predicts this year will see a 7.5 percent increase for broadcast TV station income over last year. The consulting firm said aggregate income in the sector will likely total $17 billion in 2010, compared with last year’s $15.8 billion.

BIA/Kelsey’s latest Television Market Report says television revenues in 10 states will increase nearly 8 percent or more due to hotly contested political races. Among those states: Arkansas (8.5 percent), Pennsylvania (8.5 percent), Texas (8.48 percent), Ohio (8.48 percent), and Colorado (8.43 percent).

“We feel the industry is taking a positive turn and should now focus squarely on improving its revenues by identifying sources of income from multi-casting, online and mobile,” said Mark Fratrik, Ph.D., vice president of BIA/Kelsey. “Broadcasters should be expanding their businesses into related areas where they'll find their audiences and be able to give advertisers greater reach.”


(
The chart at left shows television station revenues from 2004-2009 and BIA/Kelsey's projections through 2014.)

The broadcast upfronts are expected to generated $8.26 billion, according to estimates from Barclays Capital. The figure is a 20 percent increase over last year, when upfront spending plunged $3.5 billion. The upfront sellout is expected to be 77 percent versus 70 percent last year for ABC, NBC, CBS and Fox.


The rebound of the auto industry was cited as a driver, both of more sales and higher costs per thousand. Wire reports indicated CPMs for this upfront season could rise by a high single-digit percentage.


The Big Four broadcast networks likely will give their upfront presentations next month in New York, selling time in shows for the upcoming fall season.

-- Deborah D. McAdams


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