Report: Record Spending on Media, PPV, VOD25 Sep, 2007 By: Chris Tribbey
Research firm SNL Kagan released its “Media Trends 2007” report Sept. 25, showing U.S. consumers are spending a record amount of their budget on media, pay-per-view and video on demand. It showed revenue in the fields will more than triple in the next decade, and that basic cable is being watched more than broadcast networks nearly 3-to-1.
“Older media players are enhancing or expanding their businesses via new technologies,” said Deana Myers, SNL Kagen senior analyst. “Content owners and distributors are using digital to reach new audiences and boost revenue, while cable MSOs (multiple system operators) have made significant gains in the phone and high speed data arenas.”
The report shows consumers are spending 1.85% of the average annual income on media, a record high according to the report, and mostly due to the wider range of products available, and the higher price tag for high definition items. TV broadcasts saw higher-than-expected revenue gains from political ads in 2006, and online and retransmission of copyrighted content figures to be a source of big money in the coming years, the report states. Pay per view and VOD will be worth nearly $9 billion a year in 2017, and U.S. wireless subscriptions grew an astounding 12% last year, reaching 233 million, according to the report.
For more information about the report, call 866/296-3743.