Yesterday a leading media research firm released a comprehensive study sizing up the economic prospects of America’s cable networks. According to the SNL Kagan’s study, despite a rough climate for most media companies, cable networks enjoyed a great 2007 and are expected to do well in the first half of 2008—although a downturn in ad sales is expected in the second half of this year.
"According to SNL Kagan, 2007 was a banner year for cable networks," read a summary of the report. "Industry revenue increased by 12.6% in 2007 to $38 billion. Ad revenue jumped 10.5% to $19 billion, while license fees (affiliate revenues) soared almost 15% to more than $20 billion."
"Despite the recent economic downturn, SNL Kagan expects 2008 to be another strong year, thanks mainly to license fees, which result from long-term contracts and provide cable networks with nearly half of their revenue," added the study.
More from the release:
