Kagan Research doesn’t expect HD technology to have an immediate impact on broadcast revenue, but in releasing a summary of its latest Radio Financial Databook, the company said the investment in digital will have a long-term positive impact.
Kagan says HD Radio is expected to generate $1.6 billion in annual revenue by 2011, with the bulk of that coming from ad sales on secondary channels. Those multicast channels are, at present, commercial-free.
“As of Q1 2006, there were 748 stations broadcasting in HD in 141 markets, with more than 170 stations multicasting a second channel,” stated Kagan analyst Michael Buckley. “As the HD rollout continues to gather steam, the industry is expected to benefit from positive buzz while preparing itself for future revenue streams.”
HD Radio’s Dollar Impact: $1.6 Billion by 2011
HD Radio’s Dollar Impact: $1.6 Billion by 2011
