Affiliates Reap ’Net Profits

[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
A dramatic increase in online spending is catching station managers’ attention. According to a study released last week, TV stations are poised to take in an estimated $410 million from their Web sites in 2006 and have more than doubled their take over the last three years. Last year, TV-station Web sites produced $283 million, up from $119 million in 2004, according to research firm Borrell Associates. This year, the company is forecasting 45% growth for TV Web-site revenue. Of course, compared with a station’s overall profits -- an affiliate in a midsize market might gross $20 million a year -- Internet money is small. But as local broadcast wards off competition, station managers are desperate to cultivate new revenue streams.
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