SNL Kagan Reports Big Gains For National Cable Advertising Last Year After A Rough Start
Advertisers drove cable revenues over $17 billion in 2006.
Monterey, Calif. (PRWEB) July 10, 2007 -
– SNL Kagan’s latest report, Benchmarking Cable Network Financial Statistics, shows strong growth in advertising revenue for most cable networks in 2006, with a major second-half rebound after a weak start. Many major advertisers remained on the sidelines during the important upfront market, undecided about whether to shift their dollars from broadcast and cable to new media like the Internet and video-on-demand. That trend reversed in the 2007 upfront markets, where advertisers had their wallets open when talking to cable nets.
Unlike many other ad sectors, national cable network ad revenue has performed solidly in the long term, growing 13% over the past decade. Combined national and local cable ad revenue since 1997 has grown at a CAGR of 12.2% and now totals almost $23 billion per year.
The SNL Kagan report forecasts that total cable network revenue over the next five years will grow 11% per year and affiliate revenue will outpace ad revenue. The report estimates the industry will grow from $37+ billion in revenue in 2007 to $55+ billion by 2011, while the average cash flow margin will increase from 36% to 40%.
“The industry is still extremely healthy overall, although the most impressive gains are being made by the major media conglomerates which have leverage in both ad sales and distribution. It continues to be tough for independently owned channels,” said Derek Baine, Senior Analyst at SNL Kagan.
Benchmarking Cable Network Financial Statistics is the industryÂ’s key reference source for detailed financial statistics on basic cable networks, including five years of historical data and five years of forecasts in such key categories as cable TV advertising revenue, ad inventory, subscribers, CPMs, affiliate revenue, expenses and cash flow.
SNL KaganÂ’s Benchmarking Cable Network Financial Statistics is available exclusively as part of the SNL Kagan Information Service. For more information on the report and other media & communications datasets within the SNL Kagan Information Service, call 866.296.3743 or email: SNLKaganSales @ snl. com.
About SNL Kagan
SNL Kagan is the ultimate resource for complete financial intelligence on the broad and dynamic media & communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database that is available online and updated around the clock. SNL Kagan combines the 38-year heritage of Kagan Research with parent company SNL Financial's 20 years of experience in providing essential guidance to Wall Street and to America's top corporations. For more information, visit www. SNL. com or www. Kagan. com.
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