According to new Kagan research, the major cable network revenues were up 12.7% in 2005 to $29.9 billion, with revenues rising by 13.1% to $33.8 billion in 2006
Both are below the 13.6% growth in 2004, however.
CPM increases in national advertising, rather than affiliate fees, is driving the revenue increases. Affiliate fee growth has slowed, said the company, but it predicts those revenues will pick up in 2006.
According to the top industry executives "at nearly every major cable network," independent cable channels will have a hard time finding channel space. "Independently owned networks will find it almost impossible to get carriage without the backing of a major multichannel operator," the report concludes.