The Hispanic market will continue to provide robust revenue and cash flow growth for cable and broadcast networks and TV and radio station operators, according to a study from Kagan Research.
Hispanic advertising growth is expected to outpace that of the general market, reaching $5.5 billion in gross advertising revenue by 2010. Kagan forecasts bigger revenue growth curves for cable nets in the next several years, with projected growth of 32 percent from 2002 to 2010, versus 12.5 percent for broadcast networks.
Although the Hispanic demo has lower multichannel penetration than the general population, the services are expected to gain ground in the coming decade. Multichannel penetration of Hispanic TVHH is projected to grow to 71.7 percent in 2010.
TV station players can expect solid revenue growth rates, while radio stations are projected to outpace their english language peers between 2006 and 2010.
Programming, though, is a potential growth area for all distribution outlets. Cable networks will increase program expenses most quickly, while broadcast networks are likely to have slower growth.
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