Business And Car Review : Meredith-Media General merger shows pressures on the local television receiver business
The $2.4 billion merger of Media General together with Meredith Corp. local tv set stations is beingness lauded yesteryear the companies every bit delivering shareholder value together with yesteryear media critics every bit a sign of unsafe media concentration.
What the merger actually reveals is the weakening of local tv set marketplace position profits together with increasing efforts yesteryear station owners to seek terms efficiencies together with scale advantages inward operations together with local advertising sales--a mutual strategy inward mature together with declining businesses.
The merger volition position the novel firm, Meredith Media General, into 3rd house inward local tv set station ownership. It volition accept 88 stations inward 54 markets, including forty of the large network affiliates inward the overstep 25 markets.
The firms are expecting the merger to arrive at $80 billion inward savings inward the commencement ii years.
Because of the fiscal pressures on local stations, large media owners such every bit Tribune, Sinclair, together with right away Media General together with Meredith are trying to purchase marketplace position part through mergers together with acquisitions together with multi-channel video operations. These growth revenue together with profits that they discovery hard to obtain through growth of electrical current local tv set operations.
Local tv set revenues are beingness hitting yesteryear shifts of audience consumption to programming offered yesteryear cable together with satellite operators together with downloadable video from NetFlix, Hulu, together with other connected TV operators.
The novel theatre volition involve to divest roughly stations inward vi mid-sized markets to come across FCC ownership limitations together with have regulatory approval. Sumber http://www.themediabusiness.blogspot.com
No comments
Isi Untuk Berkomentar