Entertainment Industry Analysis

INTRODUCTION

The following report is an analysis of the diversified entertainment industry. The entertainment industry is a constantly evolving group of corporations with limited competitive pressures. Revenue trends in certain core segments, including broadcast television, media networks and radio, tend to vary with consumers' and advertisers' preferences towards new forms of media (Value Line, 2010). As long as people have had discretionary time and money, the entertainment industry has thrived, and as personal incomes grew, so did the industry. Although the entertainment industry has proven to be quite resilient even in times of tough economic conditions, the most recent economic downturn has had a noticeable negative impact. Even with many large mergers and acquisitions throughout 2009 and 2010, including the Disney’s acquisition of Pixar and Marvel, and the planned merger of Comcast and NBC Universal, current stocks are dropping across the industry at an average decrease of 1.18 % (i.e., Disney’s stock dropped 5.1%). According to Price Water House Coopers (PWC), this trend will not continue and growth in projected to be positive over the next five years (approximately 5%). Below is a forward looking chart listing both current values and encouraging projected values for the Entertainment and Media industry.

Entertainment & Media Industry Overview

Amount Unit Date Source

Total U.S. Communications & Media Spending 1.092 Tril. US$ 2010 VSS

Total U.S. Communications & Media Spending (projection) 1.416 Tril. US$ 2014 VSS

U.S. Advertising Revenues, including local outlets (preliminary) 166.4 Bil. US$ 2010 Magna

Global Media Suppliers Advertising Revenue (preliminary) 389.8 Bil. US$ 2010 Magna

Global Media Suppliers Advertising Revenue (forecast) 412.0 Bil. US$ 2011 Magna

RADIO

Full Service FM Radio Stations, Including Educational, U.S. 9,844 Dec-10 FCC

Licensed AM Radio Stations, U.S. (Daytime/Unlimited) 4,812 Dec-10 FCC

PRINT MEDIA

U.S....