/ 04.29.2010 12:00AM
BIA Expects Broadcast Income to Reach $17 Billion
CHANTILLY, 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