Sorrell: TV In Trouble
Martin Sorrell says that broadcasters face "severe pressure" as advertisers dump traditional media to move their money online. The head of WPP Group notes the change is leading to a "fundamental shift" that will irreversibly alter the way TV makes money, although predictions of a total collapse are likely wrong.
"Television is under severe pressure at the moment from the Internet," he says. "There has been a fundamental shift, and the pace will quicken, but predictions of a depression in traditional media have gone too far." Still, he stresses, "television advertising is not going to disappear. It still has pulling power, but the balance will switch."
Sorrell adds that revenues from online activity at his company will increase from 25% of the total to a full third over the next five years.