Anybody out there in TV land riding an Olympic buzz (NBC’s ratings have been scorching) will be brought back down to earth by these numbers from SNL Kagan.
Cable TV ad revenue is forecast to grow at just 4.7 percent in 2009, the firm says. That compares to growth of about up 10 percent for 2008, when cable has been one of the few bright spots for media. Or as paidContent sums it up, ”This year appears bad enough for media revenues, but for cable TV, 2009 is nothing to look forward to.”
The SNL Kagan numbers back up concerns that were voiced in an article by Reuters’ Kenneth Li after Viacom’s quarterly earnings report last month.
Although the portfolios of each conglomerate varies, making sweeping generalizations difficult, what unites them is a fear that a dramatic halt in newspaper and local advertising could seep into national advertising, namely cable and broadcast networks.
It is all the more troubling because cable networks are seen riding a high as their shows vie for award nominations as aggressively as they court broadcast viewers.