Trouble in Big-Media Land
Posted on January 30, 2009
By Joe Miller |
Media consolidation didn’t work.
For all of their lobbying efforts to consolidate 95% of our media experiences to a handful of companies, now look where we are. If it ended there–just with the failure of these companies that have been hell bent, for decades, on silencing smaller players–the situation would be merely abhorrent. But these media companies employ thousands. It’s barbaric.
Here’s a summary:
- Analysts predict local advertising revenue to decline anywhere from between 10-20%.
- Sony Pictures’ revenue has declined by 22%.
- ABC/Disney eliminated 400 jobs yesterday.
- At least one analyst has downgraded Newscorp from “buy” to “sell.”
- Revenue at CBS Radio is expected to decline by 17%.
- Fourth quarter DVD shipments declined by 32%, further threatening the profits of Time Warner, Walt Disney, Viacom, and Newscorp.
Do you think the economic decline will lead to more or fewer opportunities for new entrants?
