Based on the revenue estimate, BIA/Kelsey places a value of $84 billion on the entire industry. Of the $31 billion, it also says, 83% comes from just 18 major station groups with more than half the stations.
TV Stations’ 2016 Revenue To Hit $31B
TV broadcasting will gross $31 billion this year with most of it coming from 18 major station groups, according to industry research and investment firm BIA/Kelsey.
The breakdown by source of the $31 billion: spot advertising, $20.8 billion (67.4% of total); retransmission consent, $7.3 billion (23.6%); digital online/apps, $1.3 billion (4.1%); and other, $1.5 billion (4.9%).
Based on its estimates, BIA/Kelsey placed a valuation on the entire industry of $84 billion using standard multiples of revenue and cash flow.
Of the $31 billion, $25.8 billion or 83.3% comes from just 18 station groups.
“It’s incredible that 18 groups that represent just over 50% of the number of commercial stations earn over 80% of the revenue for the entire industry,” said Tom Buono, CEO of BIA/Kelsey.
The 18 groups comprise the four owned by the Big Four broadcast networks (ABC, CBS, Fox and NBC), the six large publicly traded groups (Nexstar, Sinclair, Tegna, Gray, Meredith and Tribune) and eight large private groups (Hearst, Univision, Raycom, E.W. Scripps, Cox Media, Hubbard, Cordillera and Quincy).
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