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The Cutting Edge Communications By Alan Capper, past Chairman of Saatchi and Saatchi's global public relations
August 2007
So here we are in the middle of the dog days of August in New York City, but from a media point of view it is not exactly quiet. Rupert Murdoch has finally won his battle to purchase the Wall Street Journal and other significant parts of the Dow Jones empire.
It is an important moment in media history when the New York Times announces that it is reducing its size and its production staff by 250 because of the flight of advertisers to the Internet, away from print. It is also important that Rupert Murdoch has finally succeeded in his campaign to capture the Wall Street Journal ending a family dynasty, and showing his continued faith in print media.
The state of newspapers generally is not rosy as we complete the upheavals that are taking us into a largely audio visual world where you can get your news from your I-phone or Treo.
The media environment has changed, driven by digital technology, the rise of the educated consumer, and the changing requirements of brand marketing. The development of digital branded content, pod-casting, blogs, product placement and segmented special interest cable channels has created opportunities for new companies in this sector to generate profits through innovation and an ability to manage and benefit from change.
Consider these circumstances. Ariana Huffington's blog is now being sponsored by the giant JWT advertising agency. TIVO has launched TIVOCAST and is introducing technology to transfer Internet video content to televisions. Peter Meir of Time Inc. has said that within five years the group will be utilizing electronic reading devices now being developed by Toshiba and Kodak
What does all this mean to the investor?
There are more opportunities to invest in media both in the United States and internationally than ever. New special interest cable channels, and new internet channels such as Slate .com that can deliver audiences that advertisers really want are good examples. Publishing is still alive and well, and a combination of magazine and web site can be very powerful. Bruce Wasserstein acquired New York Magazine in 2004, and after a couple of difficult years it is now in the black, and the centerpiece of his New York media company, It has also given birth to a web site likely to produce a great deal of revenue. We continue to monitor this exciting sector for investment opportunities for our clients.
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