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Basic-Cable Ads Poised to Slow, says Kagan

While 2008 is a banner year for basic-cable networks despite the weak economy, their revenue growth will decelerate later this year and in 2009, according to an SNL Kagan Research report unveiled last week. Kagan forecast that basic-cable networks will post healthy 10.4% ad revenue growth in 2008, but the increase will slip to a 4.7% gain in 2009 as the slowing economy becomes a drag on ad spending. Aggregate ad sales at channels such as CNN, Discovery Channel and TNT will then recover to 11.1% growth in 2010. Carriage fees are expected to rise 9.5% over the next 10 years, though that decelerates from 16.1% over the prior decade.