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Media Companies: Not So Boffo in 2006
According to BusinessWeek.com, Standard and Poor's Ratings Services is not optimistic about the outlook for media and entertainment next year. Although local elections and the Winter Olympics are expected to help perk up revenues, S&P sees "slowing momentum" in traditional advertising. S&P is currently targeting 5 percent ad-spending growth in 2006. It cites "numerous concerns" for the somewhat gloomy outlook: "Most important, continuing deterioration of the financial health of U.S. automakers," which would likely have a negative impact on ad spending. Some highlights of the S&P forecast: Broadcast and cable nets "to grow in line, or slightly faster than, GDP." TV Station Groups: Spot revenues are forecast to grow between 6 percent and 8 percent. Magazines: Ad pages projected to post "minimal growth, in the low single-digits." Newspapers: Ongoing challenges related to ad demand, circulation revenues, and newsprint prices. Revenues to grow slightly faster than the 2 percent to 3 percent anticipated for 2005.
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posted by Unknown @ Wednesday, December 14, 2005,
