Rus News Journal

Crisis has reached the American media industry

the American media companies endure now the period of long crisis. If 2008. Became for them unsuccessful the next year, against sharp decrease in purchasing capacity and reduction of expenses on advertising, can appear a real crash, transfers Reuters.
Moreover, some experts assure that the media industry is on the threshold of a new epoch: the Internet and digital television gradually force out printing mass-media and cable channels. As a result to the large media companies if they want to survive, it is necessary to reconsider the policy completely.
the next year will be not the most successful for the large media companies. Americans have started to cut down sharply the expenses that will lead to reductions of the personnel and sharp decrease in profit of media giants - representative PricewaterhouseCoopers Stephanie Kejn considers. The role is played, as she said, also by that fact that the majority of the companies now prefer to place the advertising on the Internet, instead of in printing mass-media.
in the meantime the profit of the largest media companies continues to decrease. And quotations of their actions fall also. As a result now heads of media holdings guess how to return trust of investors and how to restructure the companies that they have started to make again profit. However, some experts assure that soon profitableness of the media companies will start to grow. However it is impossible to forget that the companies of this branch very strongly depend on consumers. I think, the next months it is necessary to them hardly - representative Ernst and Young Howard Bass speaks. By estimations UBS, in 2009. The quantity of advertising orders will be reduced to 3,9 %, thus in the USA decrease will be especially sharp - an order of 8,7 %. And it taking into account that index S &P media has already lost for the expired period of this year an order of 41 %.
However, it is possible to find in all event and positive sides, participants of the market mark. Against aggravation of a condition of world economy many media companies had an excellent possibility to get actives of competitors at very low prices. For example, owning NBC Universal General Electric Co already has declared intention to buy media actives. Also on acquisition of competitors have seriously reflected News Corp, Time Warner Inc and IAC/ InterActiveCorp.
they have enough money for acquisition of new actives - marks S.Kejn. Thus the expert adds that the large media companies do not need to be idle, expecting the crisis termination: They cannot surrender. Now they had an excellent possibility for escalating of the presence in this market . Also media holdings should reflect on purchase of manufacturers of video games, G.Bass adds. They should think of acquisition of game actives as they can make further quite good profit - the expert believes.