The U.S. broadcast TV industry remains stable, said...
The U.S. broadcast TV industry remains stable, said Moody’s Investors Service in an email to investors Monday. Broadcaster “core revenue” is expected to grow 1-3 percent over the next 12-18 months, and advertising revenue could rise faster if U.S. economic…
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growth is better than expected, Moody’s said. Broadcasting will get a “cyclical” 12-16 percent boost from political advertising and the Winter Olympics, Moody’s said. Political ad revenue will reach around $2.6 billion, short of the $2.9 billion during the 2012 presidential election, said the analysts -- though it’s likely to rebound during the next presidential election in 2016. “E.W. Scripps, Sinclair Broadcast Group, LIN Television, Media General, Nexstar Broadcasting and Gray Television are among the broadcasters that will benefit most from owning stations in markets in which elections likely will be heated,” said Moody’s. Retransmission consent fees will contribute more than 20 percent of broadcaster revenue in 2014, Moody’s said. “Operators will negotiate still higher fees from cable, satellite and telecom distributors as they attempt to match the far higher carriage fees cable and satellite companies pay cable networks for programming,” said the email. Broadcasters will also use free cash flow to finance acquisitions and invest in growth, Moody’s said. “Their stronger balance sheets will help offset the higher debt burden that comes with acquisitions,” it said.