New Tech revives interest in Media.

Media Trends 2007, a new study from SNL Kagan, shows how the latest technologies and digital services are shaking up the media market. Major players like Apple and many telcos are taking advantage of these new technologies to expand their product offerings and increase competition.

“Older media players are enhancing or expanding their businesses via new technologies,” said Deana Myers, SNL Kagan senior analyst. “Content owners and distributors are using digital to reach new audiences and boost revenues, while cable MSOs have made significant gains in the phone and high speed data arenas.”

At the same time, multichannel providers have jumped headfirst into the race for customers by offering on-demand and high-definition games. This competition benefits consumers, who are now spending a record amount on media — about 1.85% of the average U.S. annual income.

Among other highlights from the Media Trends 2007 report:

– TV broadcasters enjoyed higher-than-expected political advertising revenues and gains from all top 10 TV ad categories in 2006. Online and retransmission could prove to be lucrative growth areas over the next decade.

– SNL Kagan estimates the pay-per-view and video-on-demand industry at about $2.8 billion in 2006 and expects it to grow to $8.9 billion by 2017. We expect the most growth from the VOD segment, to nearly $5.5 billion by 2017 from $1 billion in 2007.

– Basic cable commanded an impressive 63.5% viewing share in 2006 versus 39% for the broadcast networks.

– U.S. wireless subscriptions grew by more than 12% in 2006, reaching 233 million at year-end. Total industry ARPU is expected to grow at an inflation-paced CAGR of 1.5% over the next 10 years.

Media Trends is an annual survey of key facts, figures and viewpoints for media segments including broadcast TV and radio stations, cable MSOs, cable networks, consumer entertainment, DBS, Internet, motion pictures, newspapers, pay networks, PPV/VOD/DVRs, telco video, TV programming, home video, and wireless.

For more information at http://www.snl.com