Analyst Sees Ads Up in Fourth Quarter

As media companies get ready to report earnings, analyst Michael Nathanson, of MoffettNathanson Research has updated his estimates about the crucial issue of advertising revenue.

After several quarters that were lukewarm at best, Nathanson sees the big media companies putting up a solid 4.3% gain in the quarter, up from an earlier estimate of 3.2% The growth rate would be the highest since the fourth quarter of 2013.

“Advertising gains are being driven by stronger demand for scatter advertising after two years of weak upfront buying,” he notes.

Nathanson sees the broadcast networks posting a 3.4% gain, led by CBS, with a 5.6% increase. He notes that for the first time in years, Fox is showing an increase, up 3%.

Cable networks are expected to show even bigger gains, at 4.9%.

The biggest gainers are AMC Networks and Disney, posting double-digit increases. Viacom is the only major programmer in the minus column, forecast to be down 5.5%.

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.