Huge Growth in Hispanic TV and Radio Projected

SNL Kagan's newest study, "Economics of Hispanic TV & Radio in the U.S., 2008 Edition," reveals that combined revenues for four U.S. Hispanic broadcast networks (Telemundo, Univision, Telefutura, and Azteca America) are expected to top $1.6 billion in 2011.

According to the study, while Hispanics are the country's fastest-growing ethnic group, they have lower penetration rates for multi-channel video packages (71.6% of Hispanic TV households had a multi-channel subscription in 2007, compared to 87.6% for the entire U.S.).

The result is that Hispanics are an important target for cable and satellite distributors.

According to the press release, SNL Kagan estimates that Hispanic multi-channel homes could increase to 9.7 million in 2011 from 8.7 million in 2007, while Hispanic TV homes are projected to grow to 13.4 million from 12.1 million in the same period.

In terms of advertising, the release states that Hispanic TV stations can expect 5.4% annual revenue growth through 2011, and Hispanic radio revenue will increase 6% in 2008 to $1.21 billion, outpacing the overall industry's expected growth of 2% to 3%. Over the next four years, radio station revenues are expected to grow at a 4.9% CAGR, the release says.