Local TV stations, already reeling from plummeting sales with The Departure of automotive and financial advertisers in particular, were hit today (Tuesday) with a new report from analysts SNL Kagan indicating that they can expect revenue to fall even further for at least the next five years. After last year's decline of 7 percent, Kagan predicts that this year's drop will be 15 percent. In 2010, revenue is likely to stabilize somewhat but drop 2 percent per year thereafter -- until around 2015. In order to survive, the report said, stations will have to "transition their business models to develop digital assets and nontraditional revenue streams." Meanwhile, shares in CBS plummeted 17.8 percent Monday after UBS analyst Michael Morris downgraded it to "sell" and predicted that advertisers will not return even when the economy recovers from the recession.

31/03/2009