5 years for the industry to recover?

It has not been the best of weeks for the media in terms of job losses but James Robinson writing in this morningsObserver hold sout some hope for the Industry,although it is going to take some time to ride out the storm.

He quotes Paul Zwillenberg, a partner at management consultants OC&C.
who says

'The severity of a downturn is more exaggerated in the media sector and it is hit harder and faster than any other

and adds that in

the last recession, in the early 1990s, it took three years for media companies to return to pre-recession levels of profitability. But crucially, the industry was not facing the technological challenges presented by new competitors. This time, he says, it will take far longer to recover - up to five years

But those technological differences from last time will also work to the advantage of the industry.Crucially

the growth of online television could provide broadcasters with a financial lifeline, despite fierce competition from internet giants YouTube and MySpace.

and this aligned with big increases in broadband takeup and a report out this week which shows that we are actually watching more commercial Tv will provide

Broadcasters with the ability demonstrate that they can create platforms worth advertising on.

As with all recessions,sometimes the weakest will fall by the wayside but those strongest and willing to adapt will survive