Legacy Media Companies To Hit $4.9B In Digital Revenues

Digital advertising generated by traditional broadcast/cable TV networks continues to rise.

Digital ad revenues -- mostly coming from TV networks' OTT platforms/partnerships -- are forecast to rise to $4.95 billion, representing 6.5% of all 2019 U.S. TV advertising revenue, according to the Convergence Research Group.

Previously, Convergence projected digital ad revenue shares for broadcast/cable of 5.2% in 2017 and 5.6% for 2018. According to industry estimates, $70 billion to nearly $80 billion a year is spent in total U.S. TV advertising.

At the same time, there will be ongoing media disruption from alternative media platforms on traditional pay TV providers.

Convergence projects that revenues among traditional U.S. cable, satellite, telco TV services (not including OTT) will decline 3% in 2019. This follows a 3% drop in 2018.

In 2018, the group estimated those revenues amounted to $103.4 billion. It forecasts a decline of 4.56 million TV subscribers to an estimated 84.6 million.

In addition, the research company estimates revenues from all U.S. OTT (over the top) businesses (66 OTT platforms) to 37% to $22 billion this year, up from $16.3 billion. Total OTT U.S. households: 93.7 million.

U.S. residential broadband subscribers will grow 7% in 2019 -- the same hike as in 2018, which totaled $61.6 billion in revenue.

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