Consumer shifts, saturation add to economic woes: Media giants grapple w/ issues on multiple fronts

Consumer shifts, saturation add to economic woes
Beyond the recession, media giants grapple with issues on multiple fronts

By David B. Wilkerson, MarketWatch


CHICAGO (MarketWatch) -- Don't look for the news to get much better for big media anytime soon as Viacom Inc. and CBS Corp. get ready to report their quarterly financial results: The recession-ridden economy is only a part of the problem.

The sad truth is that changing consumer behavior is still the biggest thorn in the side of conglomerates like Walt Disney Co., Time Warner Inc. and News Corp., all of which reported tepid quarterly results last week. The economy's effect has been to thicken the haze already shrouding the television-station and DVD businesses.

Both Disney and News Corp. sustained severe declines in advertising sales at their owned-and-operated TV stations. (News Corp. is the parent of MarketWatch, the publisher of this report.)
In the current quarter, ad sales at Disney-owned ABC's TV stations are "significantly behind" the pace of 2007's March quarter, said Thomas Staggs, Burbank, Calif.-based Disney's chief financial officer. As for News Corp., ad revenue at the company's TV stations dropped 19% in the three months ended Dec. 31.

Local TV stations are having trouble across the U.S., reflecting the dismal situation facing traditionally heavy buyers of TV ads, such as retailers and auto dealers.

"The big thing that really is killing us (at the stations) is the lack of automobile advertising," News Corp. Chairman Rupert Murdoch told analysts last week. "Local stations' automobile advertising was at least 30% of the revenue. There is precious little of it around now." ........(more)

The complete piece is at: http://www.marketwatch.com/news/story/Consumer-shifts-saturation-add-economic/story.aspx?guid=%7B670B3C4C%2DB6FD%2D471E%2D8CFD%2D3A6EF7053AC3%7D

"We've had quite enough bullshit, lies, spin, distraction, and propaganda from the bent-knee right-wing, republicon-owned corporate media toadies. Your 15 minutes is up. Thank you very much."

- Americans

It's like they're the Bruce Willis character in the "I see dead people" movie.

The republiK-corporo/MSM is a has-been relic but doesn't know it yet.

...that they are rendering themselves irrelevant and obsolete by virtue of their spin, propaganda, and disrespect.