Cable industry sees 12.6 percent revenue jump in 2007
Aug 19, 2008 11:32 AM
Last year was a banner year for cable networks, with industry revenue increasing by 12.6 percent to $38 billion, according to a new report from SNL Kagan.
The report, “Economics of Basic Cable Networks,” found that ad revenue jumped 10.5 percent to $19 billion in 2007, while license fees (affiliate revenues) soared almost 15 percent to more than $20 billion.
Despite the recent economic downturn, SNL Kagan expects 2008 to be another strong year, mainly because of license fees that result from long-term contracts and provide cable networks with nearly half of their revenue.
SNL Kagan forecasts ad revenue will be up 10.4 percent for all of 2008, despite an expected weakening in the second half of the year. That growth will be cut to 4.7 percent in 2009, recovering to 11.1 percent in 2010 on the back of a strengthening economy.
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