Subscription TV Drives Growth, Says Study

SUBSCRIPTION TV DRIVES GROWTH, SAYS STUDY
[SOURCE: Broadcasting&Cable, AUTHOR: Jon Hemingway]
The U.S. TV distribution business will grow 5.4% to $123.3 billion by 2011, according to a new study released Thursday by PricewaterhouseCoopers, led by subscription TV, with ad-supported local TV basically flat over the same period. The study breaks out the U.S. market into end-user spending, which is both subscription -- basic and premium -- and non-subscription services -- pay per view and video on demand -- and ad spending. The former is projected to rise at a 7.1% compound annual rate to $88.6 billion in 2011 and the latter at just a 1.7% rate to $34.7 billion. The most significant surge in end-user spending will come from video-on-demand segment, though it will remain a relatives small piece of the pie.
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