A study released by SNL Kagan today predicts local TV will experience a 15.7% revenue decline this year on top of last year’s decline of 6.9%. More:
“SNL Kagan forecasts a turnaround in 2010, with modest growth through 2013 offsetting some of the declines of 2008-2009. In the five-year outlook, SNL Kagan expects radio revenues to decline by a CAGR of 1.9% and TV revenues to drop 2.0%.”
In other words, local television is not returning to previous revenue levels for the foreseeable future, suggesting an urgency to permanently reinvent around slimmer cost structures. “Those radio and TV station owners who are able to reduce expenses while continuing to transition their business models to develop digital assets and non-traditional revenue streams will survive and reemerge as more efficient operations,” said Robin Flynn, senior analyst at SNL Kagan. “If broadcasters have an advantage over Internet companies, it is their reach within local communities, and their financial success will depend on how they work to meet the needs of the local market.”