Abstract
The importance of the media industry has grown incessantly over the last ten years, especially fueled by tremendous profit potential opening up thanks to new technologies. The increased importance is reflected in economic respects. Worldwide, the media industry encompasses over $800 billion and is moving on to the playground of globally active multinationals. And over the last decade, it was also the media companies that captured the capital markets’ attention. The Dow Jones Media Stoxx reached its absolute peak in 2000. The positive assessment by capital markets appeared justified for quite some time. Detailed analyses revealed the exponential growth rates realized by the media industry in the 90s. An analysis conducted by A.T. Kearney and the Universität Eichstätt-Ingolstadt on the world's 30 biggest media enterprises identified an average annual growth rate of nearly 20%. Annual growth of the top 7 in this segment even swung up by an astonishing 50%. Growth rates of that kind led to major investments and even companies from other industries like the diversified group Vivendi risked moving into this lucrative market segment. For the most part, this growth can be explained by the extremely positive development of single sub-segments. Media companies especially profited from the demand-driven development in the U.S. as well as from a broad spectrum of segments in the electronics and new media markets.
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© 2003 Springer-Verlag Berlin Heidelberg
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Ringlstetter, M., Vizjak, A. (2003). The Only Way for the Media Industry to Grow and Profit Is with Content. In: Vizjak, A., Ringlstetter, M. (eds) Media Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24786-9_1
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DOI: https://doi.org/10.1007/978-3-540-24786-9_1
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07886-6
Online ISBN: 978-3-540-24786-9
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