Significant Growth in Hispanic TV and Radio Projected

February 7, 2008

This article is included in these additional categories:

Broadcast & Cable | Hispanic | Media & Entertainment | Radio | Television

Hispanics are the country’s fastest-growing ethnic group but have lower penetration rates for multichannel video packages – and therefore constitute a significant market opportunity – according to SNL Kagan‘s newest study, “Economics of Hispanic TV & Radio in the US, 2008 Edition.”

The report estimates that 71.6% of Hispanic TV households had a multichannel subscription in 2007, compared with 87.6% for the entire US, making Hispanics an important target for cable and satellite distributors.
SNL Kagan estimates that Hispanic multichannel homes could increase to 9.7 million in 2011 from 8.7 million in 2007, while Hispanic TV homes are projected to grow to 13.4 million from 12.1 million in the same period.

The four major US Hispanic broadcast networks – Telemundo, Univision, Telefutura, and Azteca America – had estimated combined revenues of $1.3 billion for 2007. That figure is expected to top $1.6 billion in 2011.

Combined cash flow could generate greater growth, jumping to $627 million in 2011 from $460 million in 2006, SNL Kagan projected, adding that Hispanic TV stations can expect slower revenue growth – at about 5.4% annually through 2011.

SNL Kagan expects Hispanic radio revenue to increase 6% in 2008 to $1.21 billion, outpacing the overall industry’s expected growth of 2% to 3%. Over the next four years, Hispanic radio station revenues are expected to grow at a 4.9% CAGR.
“The recognition of a growing audience with increasing buying power has highlighted the importance of targeting the Hispanic population,” said Deana Myers, senior analyst for SNL Kagan.

“Spanish-language broadcast networks have been rapidly growing over the past several years, attracting new advertisers, while English-speaking broadcast networks have struggled during the same time period to generate minor growth in advertising dollars.”

The report is available exclusively as part of the SNL Kagan Information Service.

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