US TV Revenues Down 7% in 2008 and 8.5% in 09 - But the Solution is ...

23 December 2008

NEW YORK: TV station revenues in the US will fall by 7% to $20.1 billion (€14.4bn; £13.6bn) in 2008, and are likely to decline by 8.5% next year, according to media intelligence specialists BIA Advisory Services.

According to BIA's figures, stations on the East and West coasts of America faced the most challenging conditions, with revenues down 8.2% and 7.6% respectively, while totals fell by 5.8% in the Midwest.

The researcher also reports that overall 2008 figures will be the lowest in seven years, with growth failing to return before 2010 when the Congressional elections will drive a revenue uplift of 6.4%.

One method that could help broadcasters improve their operating income in 2009 is to integrate their operations over various media types, and "bundle" the packages they offer to advertisers.

Indeed, BIA estimates that "multicasting" shows on TV, the internet and mobile phones could be worth an extra $1.1 billion to the industry by 2012. 

Says BIA vp Mark Fratrik: "With [TV stations'] 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."

Data sourced from AdWeek (US); additional content by WARC staff