VSS a bit more bullish on communications spending


ChartThe final tally for 2011 came in a little bit better than Veronis Suhler Stevenson (VSS) had projected in its September “Communications Industry Forecast.” The media/communications-oriented private equity fund is sticking with its projection that broadcast television will outperform GDP growth in 2012, while radio will trail.

Spending on the US communications industry grew 4.2% in 2011, beating the 4.1% projection that VSS issued in September. That pace is projected to pick up in 2012 to total growth of 5.6% to $1.185 trillion – beating forecast GDP growth of 4.4%.

VSS has a broad definition of what is included in the US communications industry, but the good news for RBR-TVBR readers is that broadcast television is one of the sectors projected to outperform GDP, with 9.3% growth, as is subscription television, up 7.7%. Broadcast and satellite radio, however, are projected to grow only 2.6%.

As you would expect, pure play consumer Internet and mobile services – well known as a hot sector – leads the VSS list with projected 2012 growth of 18.1%.

VSS Chart