Media, Entertainment Execs Bullish On Future
Media and entertainment executives are feeling better — much better — about the future, expecting to see increased growth and an improving merger deal environment.
According to EY’s 9th Capital Confidence Barometer — Media & Entertainment, more than two-thirds (68%) of media and entertainment executives say the economy is improving, up from 26% who said the same thing a year ago.
“It’s a return of the sense of confidence in the way the world is unfolding,” Tom Connolly, EY’s global media & entertainment transaction advisory services leader, tells Marketing Daily. “There has been a steady level of growth and that’s giving them a higher degree of comfort.”
Meanwhile, nearly three-quarters (73%) of senior executives from large media and entertainment companies expect the global economy to grow next year, with most (62%) saying it would grow 1%-2%. Correspondingly, 53% of these media executives said they will focus on growing their business next year (compared with 33% who said the same a year ago), and 87% said they plan to either maintain (55%) or increase (32%) their current workforce size.
Executives are also looking forward to more deal making in the next year. According to the survey, 74% of executives expect M&A deal volumes to increase over the next year, and 25% of executives said they expected their company to pursue acquisitions in 2014.
The renewed optimism indicates that media and entertainment executives have adapted to new business and distribution models and are ready to begin moving forward again, Connolly says. “There are new opportunities out there, and they’re going to seize them,” he says. “It speaks very well of the industry over the next few years.”