Kagan Forecasts Hispanic Radio & TV Ad Revenues Will Reach $5.5 Bil. By 2010
February 21, 2007 at 1:43 PM (PT)
A new study from KAGAN RESEARCH, "Economics of Hispanic TV and Radio in the U.S.," reports that the largest and fastest-growing minority market in the U.S. will continue to provide robust revenue and cash flow growth for cable and broadcast networks and TV and radio station operators.
Hispanic advertising growth is expected to outpace that of the general market, reaching $5.5 billion in gross advertising revenue by 2010. KAGAN forecasts bigger revenue growth curves for cable nets in the next several years, with projected growth of 32% from 2002 to 2010, versus 12.5% for broadcast networks.
Both the television and radio sectors should benefit from increased interest in targeting the demo.
"The rapid rise in population and purchasing power has made the Hispanic TV and radio audience a highly desirable market for networks, content owners and advertisers," says KAGAN senior analyst DEANA MYERS. "Both the television and radio sectors should benefit from increased interest in targeting the demo."
"Economics of Hispanic TV and Radio in the U.S." explores a broad cross-section of issues that will impact the growth of Hispanic media. Some of the key findings and projections include:
* Although the Hispanic demo has lower multichannel penetration than the general population, the services are expected to gain ground in the coming decade. Multichannel penetration of Hispanic TVHH is projected to grow to 71.7% in 2010.
* TV station players can expect solid revenue growth rates, while radio stations are projected to outpace their English-language peers between 2006 and 2010.
* Programming is a potential growth area for all distribution outlets. Cable networks will increase program expenses most quickly, while broadcast networks are likely to have slower growth.
For table of contents and more information on "Economics of Hispanic TV and Radio in the U.S.," go to www.kagan.com/cablefuture.