The private equity firm, a leading one in the media and communications business, came out today with its 2003-2013 forecast, which essentially says the global recession will speed up needed changes in the media world. In other words, things like branded entertainment and mobile advertising are going to get even hotter, even faster.
And things like newspapers, radio, and yellow pages? Well, don’t ask.
Jim Rutherfurd, Executive Vice President and Managing Director at VSS, summed it up like this in a prepared statement: “The prolonged economic downturn has accelerated changes already underway in the communications industry. Notwithstanding significant declines in traditional media, the industry taken as a whole will continue to show relatively solid performance compared to the overall economy.”
Here’s a quick hit of some key takeaways from the VSS study:
Total communications spending will decline 1 percent in 2009 to $882.6 billion.
However, total communications spending will grow 3.6 percent per year over the next five years to $1 trillion.
That will make communications the third fastest growing sector of the U.S. economy.
Alternative marketing segments will grow at 12.6 percent annually from 2008-2013.
Here’s what’s looking good over the coming years: Internet media, professional information, business information, education, direct marketing, event marketing, public relations, e-books, word-of-mouth marketing, subscription television, mobile advertising, video games, trade shows, digital out-of-home.
And not so good: Newspapers, consumer magazines, broadcast television, radio, traditional out-of-home, yellow pages, home video, recorded music, traditional consumer books.