Media mergers: The wave rolls on
“In the absence of practical organic growth prospects, media industry executives still have the urge to merge.”
The McKinsey Quarterly, 2002 Number 2 web exclusive
The Commission’s DG Internal Market actions in the media area concern implementation of the Directive on the legal protection of services based on, or consisting of, conditional access, media ownership, cable access and other issues. It is therefore of interest for EU Actors to be aware of market developments in the media landscape.
- Entertainment and media are still fragmented compared with other industries;
- Driving the media’s ways are two imperatives: financial and strategic;
- Although intellectual property issues have been agonisingly slow to resolve, a whole new set of service offerings can now be realised;
- Challenges to overcome in the media segment:
- the distributors’ ability to deliver new services reliably;
- how to price and sell these services;
- getting content providers and distributors to sort out their rights issues and agree on how to share profit.
- Challenging conditions facing the media industry are:
- a brutal advertising environment;
- a radical change in existing channels of distribution;
- the unlikelihood that organic market growth will create value.
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- Recent story on Media & eCommerce:Commission promotes digital rights management for Internet content(28 February 2002)