NEW YORK, Jan. 14 // -- Building on its prescient 2007 predictions* and extensive coverage of the media and entertainment industry, Standard & Poor's Equity Research today published its forecast for the year ahead, including a list of prognostications that could dramatically reshape the landscape over the next twelve months. These ideas, developed by Tuna N. Amobi, Standard & Poor's Equity Research analyst for Media & Entertainment, highlight a range of expected scenarios within this rapidly-evolving sector. These findings can be found in the report titled "Back to the Future: Eight Media Predictions for 2008," published by Standard & Poor's, a leading provider of financial market intelligence.
"The past year was a very bumpy ride for media investors, as the industry confronted various challenges induced by rapid-fire shifts in the competitive, economic and regulatory environments. This sets the stage for what could be the most dramatic repositioning yet of the media landscape in 2008," says Tuna N. Amobi, also Director of the Consumer Discretionary Cyclical Group for Standard & Poor's Equity Research. "It is already shaping up as what should be a very memorable year, in our view, likely providing further visibility on critical issues affecting digital music and home entertainment, cable and satellite broadcasting, and advertising, to name just a few."
Among Standard & Poor's predictions for 2008 are major strategic moves by industry heavyweights Time Warner (TWX: Hold, $16) and News Corp (NWS: Buy, $20, NWS.A: Buy; $20) that could have far-reaching investment implications. In addition, the independent equity research firm believes the format wars in digital music and HD DVDs could see key strides made to respectively increase competition and foster consumer adoption. The report also concludes that the Hollywood writers' strike would create shifts in traditional business models, while setting an unflattering prognosis for the cable industry's initiatives on wireless convergence. Finally, hotly-contested races leading up to the upcoming elections will set a high water mark for political advertising across all media.
"When the dust settles in 2008, we believe that the factors that will help decide the industry's winners and losers are structural nimbleness, responsiveness to consumer shifts, international growth, and a strong financial profile that endures a slowing global economy and the continued fallout of the credit crunch. Importantly, the winners will likely include those that have executed strategies that both reward shareholders and establish a strong base from which to make future moves," notes Amobi. "Our optimism reflects the view that the continued volatility in the media and entertainment landscape should create even more compelling investment opportunities."
To view a video clip of Tuna Amobi discussing his "Eight Media Predictions for 2008", please click here: mms://a1802.v19724b.c19724.g.vm.akamaistream.net/7/1802/19724/v0001/streaml ogi cs.download.akamai.com/25711/S_and_P/sptv-survey-114.wmv (To view this Web site, please copy and paste the URL into your browser.)
Members of the media can request a copy of this report from the communications contact listed at the end of this release.
The analyst quoted above is a Standard & Poor's equity analyst. He has no affiliation with any company he covers, nor any ownership interest in any companies he covers.
* Readers should note that past performance is not necessarily indicative of future results.
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