Hispanic radio revenue is expected to increase 6 percent in 2008 to $1.21 billion, outpacing industry growth in general, and over the next four years, radio station revenues are expected to grow at a compound annual growth rate of 4.9 percent.
According to a study from SNL Kagan, Hispanics are the country’s fastest-growing ethnic group. But it also found they have lower penetration rates for multichannel video packages.
The report estimates that 71.6 percent of Hispanic TV households had a multi-channel subscription in 2007, compared to 87.6 percent for the entire United States, making Hispanics an important target for cable and satellite distributors.
“The recognition of a growing audience with increasing buying power has highlighted the importance of targeting the Hispanic population,” said Deana Myers, senior analyst for SNL Kagan. “Spanish-language broadcast networks have been rapidly growing over the past several years, attracting new advertisers, while English-speaking broadcast networks have struggled during the same time period to generate minor growth in advertising dollars.”
The four major U.S. Hispanic broadcast networks — Telemundo, Univision, Telefutura and Azteca America — had estimated combined revenues of $1.3 billion for 2007, with that figure expected to top $1.6 billion in 2011. Combined cash flow could generate greater growth, jumping to $627 million in 2011 from $460 million in 2006, according to SNL Kagan.