SNL Kagan’s 2008 edition of “Economics of Basic Cable Networks” predicts slow but steady growth for cable ad revenue over the next 10 years. Some highlights from the study:

· Total industry multichannel subscribers are expected to grow 1.3 percent per year, roughly half the rate witnessed between 1998 and 2007.
· Total industry ad revenue is expected to increase at an annual rate of 8.1 percent, slower than the 11.6 percent posted over the previous decade.
· Total industry revenue is expected to grow 8.9 percent per year, with affiliate fees decelerating to a growth rate of 9.5 percent per year over the next ten years versus a 16.1 percent growth rate over the previous decade.
· Total industry cash flow is expected to grow at a CAGR of 10.8 percent per year, reaching almost $40 billion by 2017.
· The average industry cash flow margin is expected to rise from 36.4 percent in 2008 to 42.5 percent by 2017.

The Daily


FCC Seeks Comment on NAB NextGen Petition

The FCC Media Bureau is seeking comment on NAB’s petition regarding the treatment of multicast streams under the NexGen TV local simulcasting rules.

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