Thursday, November 12, 2009

Media and technology are struggling to adapt in the new economy

New research from Deloitte has found that, while many industries suffer from intense pricing pressures and falling return on assets, the media industry is doing worst of all. In fact, the industry now has a negative return on assets of 4.4 per cent, compared with a positive 7 per cent 40 years ago.

writes John Gapper in the FT this morning and interestingly he adds that

although one might think instinctively that profitability is transferring from media companies to technology companies, the latter are themselves struggling to adapt.

Indeed it appears that increasing competition in the sector is leading to falling returns for assets in these businesses.

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