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Power shift, Part II

Power shift, Part II

The economic downturn may have jolted the region’s media industry, but it is triggering changes that are long overdue, Part II.

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September 21, 2009 9:44 by



However, it’s not all doom and gloom for the print market. When compared with markets in other parts of the globe, this sector of the industry is underdeveloped, giving it plenty of room to grow. “In the print media market here we still see a lot of growth driven by a number of factors,” confirms Sanders at PwC. “For example, the more general economic growth and higher literacy levels, and the fact that the economies and the media are not as mature.”

This all begs the question of what the next media climate will have in store.

Beyond the crisis. First, says Haber of Mindshare, we need to understand that we may not be through the worst yet.

“In my opinion, 2010 is going to be even tougher,” he says. “Most clients and agencies made good money in 2008, and this overlapped into the first two quarters of 2009. But now people have started feeling the pinch.”

But however long it lasts, the whole financial slowdown could turn out to be useful for the industry ­ a sort of Darwinian phase, which will weed out the weaker companies. “Coming out of the recession you’d expect to see a stronger industry in the sense that companies that come through it and survive, who have had the fundamentals of their businesses tested, will come out stronger and wiser than when they went in,” says PricewaterhouseCoopers’ Sanders.



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