Digital Radio/​TV Revenue Seen Growing through 2014

At the end of 2009, BIA/​Kelsey predicted TV stations would see a revenue increase to $16.8 billion for 2010. These same analysts reaffirmed revenue expectations for TV in their 2010 U.S. Local Media Annual Forecast released last week. Additionally, radio is expected to reach $13.9 billion in 2010.

When it comes to digital revenues, an increasingly important part of any operator’s future budget plans, TV stations should bring in $600 million this year, a $100 million increase over 2009. This level  would comprise 3.6% of the total. Radio stations are looking at digital revenues of about $500 million which would be 3.6% of their total.

By 2014, local digital revenue sources will play an even more important role for radio and TV station operators.  Analysts are looking for a total of $18.3 billion in TV industry ad revenue. Of that $1.2 billion or 6.6% will be linked to online sources and the balance will come from broadcast. Digital revenues sources will contribute 5% of revenues, or $0.8 billion, to the radio industry’s expected total of $16 billion that same year.

Rick Ducey, BIA/Kelsey’s chief strategy officer emphasizes that operators must focus on digital and “[t]his means developing the right multiplatform and multiple revenue stream strategies, which in turn requires new workflow, partnerships, business models and resources.”

[Source: BIA/​Kelsey Forecasts Local Ad Spending on Broadcast to Reach $34.3B in 2014. BIA/​Kelsey. 9 March 2010. Web. 15 March 2010.] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.