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Report: Broadcast, Cable TV Ad Revs to Drop 6%

30 Jul, 2014 By: Doug McPherson

LOS ANGELES – A new report from Media Dynamics says total TV upfront prime-time ad revenue for broadcast and cable networks will sink 6 percent – to $18.1 billion – from the $19.3 billion spent in 2013.

Broadcast upfront revenues in 2014 are estimated to drop 7.7 percent to $8.45 billion from 2013. Cable TV upfront revenues will recede 4.7 percent to $9.68 billion. It’s the first decline for cable since it dropped to $6.92 billion in the 2009 upfront period (for the 2009-2010 season) from its $7.6 billion level in 2008. Broadcast networks saw steady declines for the last two upfront selling periods.

In 2009, the TV ad revenue declines were part of the overall U.S. economic collapse that hit all businesses during the recession. In the midst of that recessionary period, total TV upfront revenues were down sharply – off 14 percent – with the cost-per-thousand viewers down 4 percent.

MediaPost News reports some of that upfront market was also affected to a major degree by TV networks withholding much more inventory that year for sale in the following scatter markets – in the hopes the economy would improve.

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