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Report: Traditional media losing value, mobile gaining

Despite the rapidly declining value of traditional media businesses, new media companies are so far failing to reap the benefits, according to international management consulting firm Oliver Wyman's 2009 State of the Industry Report.

After analyzing the top-performing 450 global companies across the communications, media, and technology (CMT) industries, the report states the sector lost 47 percent of its market value in 2008, sliding to $409 billion--a sharper decline than most broad stock markets. Some value is shifting to new media platforms, however: While traditional media (including media agencies, publishing, and broadcast and entertainment) lost 32 percent of its market value between 2003 and 2008, a decline of $137 billion, new media (i.e., digital content and services) grew 102 percent, or $58 billion.

The Oliver Wyman report adds that the mobile communications sector gained in total CMT market value, crediting consumers' increasing willingness to view content on wireless devices as well as operators' efforts to nurture business models that offer content as a loss-leader that fosters healthy margins on subscriptions. "Media companies risk becoming add-ons to the telecoms players' plans," said Oliver Wyman's CMT practice head Robert C. Fox in a prepared statement. "They face the challenge of better understanding what consumers actually want and will pay for, as well as finding new areas of growth in emerging markets and through online advertising models."

Источник: FierceMobileContent

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