Sunday, October 2, 2011

U.S. Media Biz not so bad

The last couple of months have seen analyst projections of the U.S. advertising sector downgraded somewhat, as a result of the continuing weakness of the American economy.  Market analysts at Veronis Suhler Stevenson have been following the overall communication industry, and have followed suit - downgrading their expected industry growth rate from 6.1% through 2014 to 4.1% in 2012 rising to 5.5% over the next several years.  Still, this is a better overall performance than the advertising sector alone (anticipated growth rate of 2.5%), and traditional consumer advertising market (projected growth of 1.9% by 2015).  They attribute the better performance of the industry as a whole to improved markets from "fee-based" entertainment - movies (home entertainment sector), subscription TV (expected growth rate of 7.6%), and targeted media.
   As for other traditional media segments, Veronis predicts broadcast will remain flat (slight decline this year, then slow rebound with help of new revenue streams); newspapers will continue to drop (down 2.7% through 2015); and broadcast and satellite radio growing at 4%.

Source - U.S. Media Biz To Rise To $1.1 Trillion in '11, Media Daily News

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