Commentary

Entertainment Business Doing Well -- Or Is It?

The New York Timescirculation is up for the first time in five years, movie prices rose over the last three months, and there's more money for home video entertainment sales for the first time in nearly four years.

Are things changing for the media industry, is it more of the same, or just a couple of regularly untimed blips?

Cable companies are getting more revenue per consumer than ever. (It’s not from  getting consumers to buy more pay TV services and VOD, but phone, Internet -- and, hell, down the road, maybe even something called TV Everywhere.) Seems consumers will continue to buy, even if there is 10% unemployment or 17% under-employment and unemployment.

Optimists say we are getting out of the recession. Just look -- they say -- at U.S. gross domestic product for the third quarter. It was a big (relatively, speaking) 2.5%! In the old days that would have been a reminder we are doing well. But that was when unemployment was at 5%.

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There is some comfort, when things aren't going well, in spending on media and entertainment. Does this mean that something is wrong with our society?  “There’s no food on the table, but I can watch ‘Grey's Anatomy’ tonight.”

The media economy doesn't seem to slow down -- even when it comes to jobs. Those big media companies looking to build up their digital business are struggling to find qualified people for jobs. What are the unemployment numbers there?

It’s enough to start you head-scratching -- and continue this way for the next several months.

The media business will continue to get stranger. And, truth be told, isn't that exactly what you are looking for? Predictability has been never in vogue and makes for boring headlines. People with their gas tanks on empty driving to see "Transformers"  make for a more interesting picture. Especially on TV.

1 comment about "Entertainment Business Doing Well -- Or Is It?".
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  1. Doug Garnett from Protonik, LLC, November 2, 2011 at 1:08 p.m.

    You nailed it with the truth that stable markets don't get the headlines. And that single fact is a horror of the American system - creating false crises purely to drive PR awareness.

    As a result, "TV continues to thrive" is rarely reported while reporting lusts after even the weakest startup ideas.

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