The television industry experienced negative revenue growth and relatively small numbers of individual station sales by the close of 2007, reflecting a typical odd-year national election cycle that is preparing for a potentially stellar presidential election television revenue year, according to the fourth edition of BIA Financial Network's quarterly Investing In Television Market Report.

BIAfn, a financial and strategic advisory firm serving the media and communications industries, reported 2007 television revenues as $22.2 billion, a 2 percent decrease from revenues of $22.7 billion in 2006.

In 2007 there were sales of 294 stations for an estimated $4.6 billion, compared with 202 sold in 2006 for a price of $18.1 billion (credited in large part to the sale of Univision and four NBC stations).

BIAfn predicts television station revenues in 2008 will climb in total by as much as 11 percent—a 10-year high—due to the political advertising surrounding the presidential elections and hotly contested congressional races and several state referendums. DMAs spread across the country will see revenue increases by as much as 12 percent in states such as Florida, Pennsylvania, Ohio, Virginia South Carolina, Maine, Iowa, Wisconsin, Colorado, Nevada, and southern California.

"Despite the constant buzz of new media alternatives television will prove itself to be a hot medium in 2008. Not only because it's fail-safe but because it delivers viewers in a very targeted, local way," said Mark R. Fratrik, vice president, BIA Financial Network. "The national and statewide elections will reinforce the strength of the local television market, which is the only media that can provide mass audiences in an increasingly fragmented marketplace."

BIAfn notes the top station transaction through 2007 was News Corp.'s announced sale of eight television stations to Oak Hill Capital Partners for $1.1 billion in markets that included Cleveland, Denver, St. Louis, Kansas City, and Milwaukee. The second largest transaction of the year was Lincoln Financial Media's sale of three stations in Charlotte, N.C.; Richmond, Va.;, and Charleston, S.C., to Raycom Media for $583 million.

"We believe the total transactions occurring in 2007 are indicative of the continued interest in some groups for acquiring television stations," Fratrik said. "Today's stations sales are simply designed to fulfill the current strategic objectives of the company rather than a focus on long-term strategy. This pattern is expected to remain in 2008."