Overall revenue on broadcast television will increase 9.2 percent to $52.95 billion in 2012, seeing both increases in advertising and double-digit retransmission increases, said a new report by the investment firm, Veronis Suhler Stevenson (VSS).
Broadcast TV advertising will grow 6.5 percent in 2012 to $44.71 billion, thanks to the Olympics and presidential elections, said VSS. Ad spending for broadcasting is expected to increase 2.5 percent from 2011 to 2016.
Spending within the entire U.S. communications industry will increase 5.2 percent in 2012 to reach $1.189 trillion as consumers and businesses increasingly embrace digital technology and return to spending levels not seen since before the recent worldwide economic downturn, according to the VSS forecast.
VSS is a global capital private investment firm targeting companies in the information, education, communications and business services industries in North America and Europe.
“Digital’s influence is now a constant and significant factor in every sector, segment and sub-segment of the U.S. communications industry,” said John Suhler, cofounder and president of VSS. “At the same time as digital technology and innovation continue to spur growth in the industry or propel the communications industry forward, emerging digital media and services are significantly changing consumption habits among both institutional and consumer end users. These developments will drive digital-related expenditures to constitute nearly 40 percent of the overall U.S. communications industry spending by 2016.”
The report said that revenue for subscription television has increased with more bundled services and major advertisers moving their ads from the broadcast networks to lower cost cable networks.
Cable TV, the report said, will grow 3.6 percent to $75.92 billion in 2012. Satellite will increase 6.3 percent to $31.77 billion. Telco TV spending will increase to $5.34 billion, up 12.9 percent.