Credit crunch biting the entertainment industry as well

I saw an interview by C21 Media from MIPCOM, which took place in Cannes in October (it’s a large television industry fair, basically) where people were sitting saying that “in dire times people turn to television, as it’s a lot of entertainment for little money”. So everything should be looking nice and rosy for the tv-industry, right?

Well, not quite. Today Disney, for example, announced a drop in earning of 13% in the 3rd quarter of 2008. Not to worry, they’re still making an obscene amount of money, but declining they are. The German broadcaster ProSieben Sat is planning to introduce cost-cutting measures, to counter faltering ad-sales and problems caused by the global economic decline.

If anyone has read what Karl Denninger says over at Ticker Forum, or what someone like Peter Schiff has been saying for quite some time, you know that this is not going to be just a bump in the road. The US debt is so massive, only a thorough cleansing action can be of any help whatsoever. An such an action will bring a lot of pain – that’s just the way it is.

Bottom line is I don’t think anyone or anything can avoid being influenced by the global economic situation. Best we can do is prepare and be ready. And eat lots.

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