A new study "Spotlight On Profitable Growth: Media & Entertainment" released today by Ernst & Young reveals that, despite current perceptions, the media and entertainment industry as a whole is yielding greater profitability and growth than many other stock market indices. The report shows that cable operators demonstrate the greatest likelihood of profitability among all media and entertainment sectors and that interactive media is the fastest growing sector within the industry.
The report ranks 10 media and entertainment industry sectors on both their profitability and growth rate, as well as providing a performance comparison of the overall media and entertainment business to other stock market indices.
"The data illustrates that despite a difficult operating environment, media and entertainment companies continue to show great resiliency," said John Nendick, Global Media and Entertainment Leader at Ernst & Young. "Additionally, we believe that as advertising and consumer spending continues to rebound, and digital initiatives blossom, improved growth and profitability lie ahead."
When looking at overall profitability during the period 2006-2010, cable operators had the highest average profitability at 38%, followed by interactive media 35%; cable networks 31%; satellite television 27%; publishing 20%; conglomerates 19%; television broadcast 18% and film and television production, electronic games and music, all at 11%.
When looking at just estimated 2010 profitability, the media and entertainment sectors ranked nearly identical to the five-year average with cable operators placing first at 39%; interactive media, 36%; cable networks, 33%; satellite TV, 27%; publishing, 20%; conglomerates, 18%; TV broadcast, 16%; electronic games and film and television production, both at 12%; and music, 9%.
"An improved advertising climate, combined with strong digital distribution strategies will be the key to growth among these media and entertainment sectors," said Mark Besca, Ernst & Young Media & Entertainment Partner. "Media and entertainment companies are unbundling and repackaging content in new and innovative ways and recognizing that the majority of future revenue will come from services rather than products."
See also:
Top 3 Things To Consider When Buying A New TV
Make Home Movie Night Magic
Sony Simplifies Digital Video Playback On Your TV
