Credit Crunch inflict heavy losses in media

The credit crunch from the end of 2008, it influenced the bank loan. The bank crisis affected whole society and economics.

We have all seen how the credit crunch has affected fuel prices, bank loans, and the housing market, people’s life, but what about media?

· Money: Media company cannot get enough money and support from bank.

· Advertising: Advertising revenue is the main revenue to media company, but the bank crisis made a lot of companies could get enough money to advertise.

John Hegarty said “Recession is always a problem for the advertising industry, in the sense that clients fell that advertising is the first thing they can switch off.”

Case:

Recession time lines media job cuts plotted credit crunch in north Wales. (http://blogs.journalism.co.uk/editors/2008/11/21/recession-timelines-media-job-cuts-plotted-credit-crunch-in-north-wales/)

Trinity Mirror make 28 redundancies across its regional newspapers in the north-east as it closes district offices and extends multimedia newsroom. The Independent News & Medians cut about 90 jobs. It includes: editors and sub-editors. It wants to save £10m and remain profitable.

Online advertising growth down from 40% to 17%

· Internet advertising revenues grew 17.3 per cent in 2008, down from a growth rate of 39.5 per cent in the previous year.

· Newspapers were the worst-hit by the advertising downturn, with ad spend falling 12 per cent year on year, compared with a 0.3 per cent decline in 2007.

· Magazines were the next to feel the squeeze, down 9.9 per cent comparing 2008 with 2007.

· Radio fell 8.5 per cent; television was down 4.9 per cent; and the overall ad spend decline across all media was 3.9 per cent.