Having weathered a number of recessions in the past decade, industry execs in the Asia Pacific region seem far more philosophical about the downturn, compared to the gloom dominating the US and Europe. The West, not having suffered successive setbacks as Asia has, seems to be experiencing a depression both economic and psychological; this is the first recession in many people’s lifetime. In bidding farewell to the ‘noughties’, it is that decade’s digital legacy that could have far greater implications to the TV industry than the ongoing economic downturn. The US for example, is facing the end of free-TV as they know it, as the major broadcast networks see ad revenues eroded by cable TV and the Internet. Cable’s share of total TV ad spend has risen to 39 percent in 2008, up from 24 percent a decade earlier, according to the Television Bureau of Advertising. US networks’ attempts to bolster flagging ad revenues sees them demanding higher carriage fees from cable operators. Hence the recently-resolved dispute between Fox and Time Warner Cable, which saw Fox demanding US$1 per subscriber – with agreement believed to have been reached at around a quarter of that. Headlines declaring the death of free TV may seem somewhat hyperbolic at this point, but it will be interesting to see how ad-supported media move toward paid content in the new decade. All the best for 2010
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