Subscription TV ad revenue moves close to half a billion dollars a year
Subscription television advertising revenues hit record heights of $465m in the last financial year marking a rise of more than $40m on the previous year and representing a 9.5 per cent increase.
Data released by he Australian Subscription Television and Radio Association today shows a $465,360,687 revenue in the 12 months up to June 30, which steadily increased throughout the year.
In the last six months ASTRA recorded a record revenue of $237,648,703, representing a 12.5 per cent increase.
As Mumbrella reported just over a week ago, advertising revenue to the free TV sector has dropped fractionally, with Ten the hardest hit.
Andrew Maiden, CEO of ASTRA, said that he was unable to provide a breakdown of where the advertising spend had gone across the various pay TV channels. However he said there was strong double digit percentage growth in the key marketing sectors of automobiles, finance, retail, pharmaceutical and government.
Sales house Multi Channel Network (MCN) has around 90 per cent of the market share for subscription television advertising sales, while the rest falls to Ignite – which represents the likes of MTV, SciFi and TV1 and to individual channels themselves.
Maiden said: “Despite challenging conditions associated with low consumer and business confidence, subscription television advertising revenues continue to grow strongly, a trend we believe will continue in the future.”
The Media Outlook report released by professional services firm PwC last month forecast subscription television advertising revenues would increase by a compound annual growth rate of 9.6 per cent until 2017.
The growth in revenue comes despite Foxtel taking the decision to reduce the number of ads and breaks on some channels.
Cancelled Foxtel because it was passing strange a paid service came with so many advertisements.
And EZTV offers a much better service
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Does this mean that Discovery channel will be able to replace those interminable house ads with something worthwhile? Every ten minutes, even mid word, let alone mid-sentence, they cut to an ad that you saw ten minutes before. It’s bloody annoying and completely stuffs up what could be a really good program.
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