US cable advertising revenues will increase from $4 billion to $4.5 billion in the 2002/03 season and to $5.5 billion in 2003/04, according to forecasts from Discovery Networks’ sales chief, Bill McGowan, as reported by Jack Myers Report today.
McGowan also predicted that basic cable audience share would surpass that of the four leading broadcast networks for the first time this season. Broadcast network revenues, are expected to remain flat during this ‘upfront’ season, at $7 billion and will grow to only $7.3 billion in the 2003/04 season, according to the report.
The US upfront buying season – in which advertisers pre-book inventory based on their budgets for the period – accounts for a substantial proportion of total TV advertising revenue.
The network upfronts have so far remained weak (see US Network TV Marketplace Remains Weak, Finds Myers). With advertiser budgets cut and caution being the prevailing mood, they have preferred instead to buy in the ‘scatter’ market – a more ad-hoc approach where sales are closed not a great deal in advance of broadcast.
