Sure, the television spot business is recovering from what many people have branded “The Great Recession,” but TV executives at the SNL Kagan TV and Radio Finance Summit in New York see new revenue streams adding to that positive momentum.
So even with a slow national economic recovery, the TV business is looking attractive for the next several years. The core business, of course, is still local and national spot. “That for us, we think over the next five years, is sort of a low- to mid-single digit growth rate,” said Peter Markham, chairman-CEO of Granite Broadcasting. Other panelists seemed to agree with that assessment, but retransmission consent revenues are growing at a must faster clip and digital revenues, while still small, are becoming more significant. Markham noted that digital revenues doubled for his company over the past two years, with growth continuing. “We’ve got five revenue streams now, where 10 years ago we had one,” noted Robert Prather, president-COO of Gray Television. “We’ve got our regular channel, we’ve got multicast, we’ve got retrans, we’ve got digital and we’ve got mobile. So I think the revenue streams are great going forward.” But he also noted that broadcasters now have more competition than ever before.