Report: Lost market value going to other sectors

Posted by Leah McBride Mensching on January 30, 2009 at 2:21 PM

As traditional media companies are losing value as readers migrate from print to the Web, and the global advertising and financial markets are recessive, that market value is not necessarily making its way to new media companies, Oliver Wyman's 2009 State of the Industry Report has discovered. Rather, that market value is going to other sectors, MSNBC reported Friday.

The study analyses movement in the top 450 communications, media and technology companies worldwide.

The global media sector in 2008 lost 47 percent of its market value, dropping to $409 billion, according to the Wyman report, MSNBC reported. Between 2003 to 2008, some value went from traditional (media agencies, publishing, entertainment and broadcast) to new media, but overall, traditional media losses weren't offset by new media gains. In that time, traditional media's market value dropped 32 percent, a loss of $137 billion. And although new media (online content and services) grew 102 percent, it gained $58 billion.

The report ranks media companies by their Shareholder Performance Index (SPI), which is figured using a "five-year moving 'window' of data," MSNBC reported.

The overall media sector's SPI was 104, while the online content and services sub-sector reached 167. Publishing posted a 92, while media agencies ranked 69, according to the report, MSNBC reported. Broadcast and entertainment sub-sectors were ranked at 110.