BIA: TV Industry Projected to Post -7% Growth in 2008.

Political advertising couldn’t prevent the television industry from posting -7 percent growth in 2008, according to the estimates of BIA Advisory Services. BIA’s fourth edition of the quarterly Investing In Television Market Report anticipates the downward slide to continue in 2009, with -8.5 percent predicted. This year’s negative results reflect not only the economy but stagnant ad spending that has remained at $43 billion since 2000, representing a -0.4 percent compounded annual growth rate. In 2010, with a recovering economy and several close congressional races a positive 6.4 percent return to revenue growth is expected.

BIA estimates television station revenues will hit $20.1 billion in 2008, the lowest in seven years. Across the country negative revenue numbers were higher on the east and west coasts, with -8.2 and -7.6 percent growth, respectively. The Midwest states fared slightly better at -5.8 percent.

Station transactions aren’t expected to go beyond $1 billion in 2008, on sales of approximately 65 stations, a large drop from the past two years but an equaling to the levels of 2003-2005, according to Investing In Television Market Report. BIA expects station sales activity levels in 2009 to remain equal to 2008, primarily generated by financial decisions based on existing debt and financing structures or strategic corporate objectives, coupled with smaller ownership group bankruptcies or court-ordered restructuring.

“The television industry needs to focus more on compelling cross-platform advertising opportunities in order to significantly raise their revenues in the coming years,” said Mark R. Fratrik, Ph.D., Vice President, BIA Advisory Services. “With the steady improvement of their online and mobile presence they now need to demonstrate to their advertisers the significant value proposition they can offer through a bundled advertising package.” Fratrik emphasized that BIA research for the NAB FASTROAD project estimates that by 2012 an additional $1.1 billion in ad revenues alone could come to local television stations from multicasting if they began delivering news, information, and entertainment to cellular, mobile, and portable handsets, capitalizing on time-shifts in viewing patterns and the public’s increased desire to download programming on devices other than their primary televisions.

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