• by Wayne Friedman , December 18, 2008

Overall TV revenues are poised to sink 8.5% in 2009 after a 7% drop in 2008, according to BIA Advisory, a TV financial research firm. Weakening ad spending will continue to pinch TV networks and stations, coming after a weak 2008. BIA estimates that since 2000, the entire TV market has slipped 0.4% in compounded annual growth rate, now at $43 billion.

Despite political and Olympic year TV advertising revenue in 2008, BIA estimates that TV stations will only reach $20.1 billion--its lowest total in seven years.

Regionally, it notes that Midwest TV stations fared a bit better than outlets on the East and West Coasts. Midwest stations sank 5.8%; with East and West Coast TV stations slipping 8.2% and 7.6%, respectively.

In a release, Mark R. Fratrik, vice president of BIA Advisory Services, recommended that the television industry focus "more on compelling cross-platform advertising opportunities in order to significantly raise their revenues in the coming years."

BIA estimates that by 2012, stations could generate an additional $1.1 billion in ad revenues from multicasting content to mobile phones, laptops and other non-TV devices.

It also notes that stations' transactions are at their lowest levels in four years--totaling not much more than $1 billion in 2008, from sales of about 65 stations.