Study: More tech equals more money
EmptyNEW YORK — New technologies are providing media companies with more options for consumers who, in turn, are spending more money on entertainment, an SNL Kagan report said Tuesday.
According to the report, consumers are now spending a record amount of about 1.85% of their annual income on media. Much of this is due to an increase of choices from companies like Apple, the telcos and other media outlets who have embraced emerging digital technologies.
“Older media players are enhancing or expanding their businesses via new technologies,” said Deana Myers, SNL Kagan senior analyst. “Content owners and distributors are using digital to reach new audiences and boost revenues.”
The study predicted huge gains in pay-per-view and video-on-demand revenue, especially, over the next decade. The industry had revenue of $2.8 billion last year and SNL predicted it to be up to $8.9 billion by 2017. SNL sees $5.5 billion coming from VOD in 2017 up from $1 billion in 2007.
TV advertising revenue was up, as well, in 2006 and political ad dollars were higher than expected. The study said online advertising could be a “lucrative” growth area over the next decade.
The study also found that basic cable had a 63.5% viewing share in 2006 compared to 39% for broadcast and that wireless subscriptions grew by 12% in 2006 up to $233 million.